This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Netflix Subscribers Top 20 Million

(Netflix earnings updated with additional analysis.)

NEW YORK ( TheStreet) -- Netflix (NFLX) is trading higher after it posted a record jump in new subscribers in the fourth quarter and earnings topped estimates.

The movie rental company earned $47.1 million, or 87 cents on revenue of $596 million, compared with Wall Street's estimates of 71 cents a share on revenue of $598 million.

This is up significantly from its profit of $30.9 million, or 56 cents a share, on revenue of $445 million, in the fourth quarter of 2009.

The company also saw its subscriber base top 20 million for the first time, as Netflix added 3.1 million new users during the quarter. Analysts predicted new users would grow to 19.5 million for the year.

Operating margins were also better than expected at 13%. Wall Street's biggest fear has been that Netflix's growing content costs for its streaming library will erode the bottom line.

Netflix refrained from providing full-year guidance, other than saying it expects "domestic subscriber net additions to continue to grow in 2011." The company defended this move by saying its business "is so dynamic."

But the company did say that it expects to end the first quarter with 21.9 million to 22.8 million and revenue to come in between $684 million and $704 million.

Netflix has been attempting to wean users off physical DVDs as it openly moves from a DVD-by-mail company to a streaming company.

During the quarter, Netflix began offering a streaming-only plan for $7.99 per month and raised prices on its DVD rental plans. And last week Netflix announced on its blog that it is removing its "Add to Queue" button from streaming devices.

Shares of Netflix are surging 7.6% to $197.11 in after-hours activity.

--Written by Jeanine Poggi in New York.



>To contact the writer of this article, click here: Jeanine Poggi.

>To follow the writer on Twitter, go to http://twitter.com/jpoggi.

>To submit a news tip, send an email to: tips@thestreet.com.

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,157.01 +25.04 0.15%
S&P 500 2,001.93 +2.95 0.15%
NASDAQ 4,562.4050 +9.6460 0.21%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs