Netflix (NFLX) stated Tuesday that its fourth quarter subscriber additions surged, topping its very own forecast and sending its inventory as tons as 14% greater in early buying and selling on Wednesday.

The subscriber additions of 13.12 million beat Netflix’s very own forecast of about nine million with full-year 2023 internet additions sitting at roughly 30 million. The organization had brought 7.67 million paying customers in Q4 2022.

Revenue beat Wall Street estimates of $8.71 billion to hit $8.83 billion in the quarter, an make bigger of 12.5% in contrast to the equal length final year, as the streamer leaned on income initiatives like its crackdown on password sharing and ad-supported tier, in addition to the current fee hikes on sure subscription plans.

Netflix guided to first quarter income of $9.24 billion, roughly on par with consensus expectations of $9.28 billion.

Earnings per share (EPS) barely overlooked estimates in the quarter with the organisation reporting EPS of $2.11, beneath consensus expectations of $2.20. The business enterprise suggested EPS of $0.12 in the year-ago period.

Still, Netflix guided to first quarter EPS of $4.49, in advance of consensus calls for $4.09.

Profitability metrics additionally got here in robust with working margins sitting at 16.9% for the fourth quarter and 21% for full-year 2023, beforehand of the company’s 20% target.

Free money drift got here in at $1.58 billion in the quarter, above consensus calls of $1.26 billion. The organisation elevated its free money waft to $6.9 billion for full-year 2023 in advance of Netflix’s instruction of $6.5 billion amid the have an impact on of closing year’s double Hollywood strikes.

Average income per member, or ARM, used to be up 1% 12 months over year, in line with the company’s expectations of “roughly flat year-over-year.” Wall Street analysts anticipate ARM to select up later this 12 months as each the advert tier influence and fee hike results take hold.