Netflix smoked past their Q4 projections, according the the WSJ. From the piece:
Fourth-quarter profit rose 45% as the DVD-rental company enjoyed a subscriber boost and spent less on acquiring new customers.
The company, which lets members rent DVDs via the mail or online, posted net income of $22.7 million, or 38 cents a share, up from $15.7 million, or 23 cents a share, a year earlier. Revenue increased 19% to $359.6 million.
In October, the company lowered its outlook, forecasting earnings of 30 cents to 38 cents a share on revenue of $351 million to $357 million.
Subscriber-acquisition costs, a closely watched measure for Netflix investors, fell 23% to $26.67 per gross subscriber addition. Meanwhile the churn rate, or the rate of customer cancellations, rose to 4.2% from 4.1% a year earlier.
Netflix ended the quarter with about 9.39 million total subscribers, exceeding the company's estimate from October for 8.85 million to 9.15 million subscribers. Net new subscribers in the fourth quarter increased by 718,000, compared with a 451,000 increase a year earlier.
Looking ahead, the company expects to end the first quarter with 10.1 million to 10.3 million subscribers. Netflix expects first-quarter earnings of 25 cents to 33 cents a share on revenue of $387 million to $393 million.
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