Netflix shares appear on new subscriptions, CEO swap

Something small: Netflix got off to a rocky start in 2022 but ended the year on a high note. For the fourth quarter ended December 31, Netflix generated $7.85 billion in revenue. That’s a modest gain of just 1.9 percent year-on-year but it’s better than going in the wrong direction. Diluted earnings per share was recorded at $0.12.

Full year 2022 revenue was $31.62 billion, with net income of $4.5 billion and diluted earnings per share of $11.24.

Netflix managed to add 7.66 million paid subscribers during the holiday season, bringing the total number of paid memberships to 230.75 million. The launch of the ad-supported lower-priced Netflix category in November no doubt played a role here, as the company said it was pleased with the initial results of that offering. Unfortunately for the curious among us, Netflix hasn’t disclosed which portion of its subscribers have opted into the ad-supported tier, so it’s hard to gauge how well (as an outsider) it worked.

Content is king and Netflix had plenty of good shows and movies to watch in 2022. Stranger Things season 4 has reached 1 billion hours, as did the new series Wednesday starring Gina Ortega. Other hits included Monster: The Jeffrey Dahmer Story, Glass Onion: A Knives Out Mystery, Purple Hearts, Harry & Meghan, and The Adam Project.

The video streaming giant also revealed that co-founder and co-CEO Reed Hastings has moved to CEO. He will continue to join Ted Sarandos as co-CEO along with Greg Peters, who is relinquishing his previous position as Chief Operating Officer.

Shares in Netflix hit a high near the end of 2021 at around $700, but things turned south quickly in 2022 and by June, those same shares were trading around $175. The recovery since last summer has been largely flat with shares currently trading at $337.21 as of this writing. That includes an increase of about seven percent based on today’s news.

Image credit: John Mark SmithAnd Simon Daino

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