(Netflix) Shares of Netflix Inc. fell more than 20% in premarket trading on Friday as the company said it expects to add 2.5 million subscribers in the first quarter of 2022 from the prior year.
Shares also borrowed a leaf from Netflix’s subscriber addition of 8.3 million in the fourth quarter, which was below the projected 8.5 million.
Netflix managed a revenue of $7.709 billion in the fourth quarter of 2021, an increase from $6.644 billion in the prior year. FY21 revenue hit $30 billion, up 19% year over year.
The company’s net income was posted at $607 million or $1.33 per share, an increase from $542 million or $1.19 per share in the prior year.
The streaming service company finished the fourth quarter with 222 million paid memberships, more than 203.66 million in the prior year. Netflix said it expects 224.34 paid memberships in the first quarter.
The company forecasts a higher $7.903 billion in revenues in the first quarter of 2022, while the net income is projected to rise to $1.304 billion or $2.86 per share.
NFLX: NASDAQ is down -20.12% on premarket.
