Netflix announced today that its 4th quarter revenue was $1.175 Billion, a 24 percent increase over last year. The company completed the quarter with a net profit of $48 million, and earnings per share of 79 cents, compared to 13 cents per share a year ago.
That’s good news for the company, which beat analyst estimates of $1.166 billion in revenue and EPS estimates of 66 cents per share.
Amazon Prime’s massive growth doesn’t seem to have affected how Netflix is expanding. The company said said that it added 2.33 million new domestic users in Q4, compared to 2.05 million customers a year ago, and the most the company has added all year. Overseas, the company added 1.74 million users, broadening Netflix’s reach to almost 11 million international subscribers.
Looking forward, the company says that it expects to add 2.25 million subscribers in the U.S. in the first quarter of this year, as well as 1.6 million subscribers overseas.
According to its letter to shareholders, Netflix sees the continued growth in sales driven by improvements to its service, marketing efforts, and the growth in sales of internet-connected devices.
In a significant move, the company also said that it plans to start offering a three-tiered pricing structure, following the success of its $11.99/month plan that allows users to stream video to four computers rather than just the standard two. Right now, it’s testing different variants on its existing service, including one-stream and three-stream plans, as well as plans that restrict users to standard definition video.
In addition, the company called out the court ruling that struck down the FCC’s net neutrality rules, saying that while it could negatively affect Netflix’s business the company believes that there is “broad public support for net neutrality,” and that ISPs wouldn’t want to run afoul of their users by throttling Netflix’s service. Still, in the event that an ISP does decide to slow down users’ access to Netflix, the company “would vigorously protest and encourage our members to demand the open Internet they are paying their ISP to deliver.”
Here are the company’s summary results: