Netflix’s revenue grew 27.4% year-over-year
Video streaming giant Netflix (NFLX) announced last year’s fourth-quarter results after the closing bell on January 17. In this series, we’ll look at the results’ key highlights.
The company’s revenue grew 27.4% YoY (year-over-year) to $4.19 billion during the fourth quarter, slightly below Wall Street’s expectation of $4.21 billion. This miss caused the company’s stock to fall 3.5% in after-hours trading on January 17. The company’s revenue grew 33.9% YoY in the third quarter of 2018 and ~40% YoY in the second quarter.
Revenue guidance drags down Netflix stock
Netflix stock also fell due to the company’s weak guidance for the first quarter of 2019, in which it expects its revenue to rise only 21% YoY. This growth is soft considering Netflix’s recent price hike across all US plans. Throughout this series, we’ll look at what may be behind the company’s decelerating revenue.