Netflix ended its biggest year in company history with a bang, adding more customers than expected and saying it no longer needs to borrow money to build its entertainment empire.
The world’s leading paid streaming service attracted 8.51 million new customers in the final three months of the year, helped by the popularity of hit shows such as “Bridgerton” and “The Queen’s Gambit.” That outpaced Netflix’s own forecast and the 6.06 million projected by Wall Street, helping send its shares up 13% in late trading.
The earnings report included two key milestones for Netflix: The company passed the 200 million-subscriber mark for the first time and said its cash flow will allow it to stop relying on debt to fuel its growth. With $8.2 billion in cash—and a credit line that hasn’t been drawn down—Netflix said it no longer needs external financing. It’s also considering stock buybacks, something it hasn’t done in about a decade.
Netflix’s growth has ebbed since pandemic lockdowns fueled a boom in sign-ups during the first half of 2020. It added 25.9 million customers in the first six months of that year and has repeatedly warned that the surge would take a toll on growth in subsequent quarters—what it calls the “pull-forward” effect. Still, it found more runway than expected in the latest period.