Netflix (NFLX +0.96%) wrapped up 2018 earlier this month when it released its fourth-quarter and full-year results. The report closed out an impressive year, featuring significant member growth, an expanding operating margin, and rapid revenue growth. Importantly for shareholders, a strong performance during the year helped the stock handily beat the market.
Check out the latest Netflix earnings call transcript.
With the company's fourth-quarter results out and 2019 underway, it's a good time to reflect on the company's success last year. These eight metrics capture the company's wild momentum.
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39%
Throughout 2018, Netflix's stock rose more than 39%. This meant shares significantly outperformed the S&P 500, which declined about 6% during the same period.
35%
Netflix's total 2018 revenue rose 35% year over year. Highlighting the company's solid performance last year, this is an acceleration from the 32% year-over-year revenue growth Netflix saw in 2017.
117%
Netflix's net income skyrocketed in 2018, rising 117% year over year, to $1.2 billion. Also keep in mind that this is up enormously from net income of $187 million in 2016.
Netflix's $1.2 billion in net income in 2018 translated to $2.68 on a per-share basis. This is up from earnings per share of $1.25 in 2017 and $0.43 in 2016.
53%
Netflix's international streaming revenue jumped 53% in 2018, to $7.8 billion. This meant international streaming revenue accounted for more than half of the company's total streaming revenue.
24%
While Netflix's international segment was the primary driver of the company's growth in 2018, Netflix still saw robust growth domestically. Domestic streaming revenue rose 24% year over year, to $7.6 billion. Impressively, this marked an acceleration compared to growth seen in 2017. Domestic streaming revenue increased 21% year over year in 2017.
So much for a saturated U.S. market.
139 million
Adding 29 million paid members during 2018, the company finished the year with a total of 139 million paid members. Notably, net member additions were up significantly in 2018 compared to 2017. In 2017, the company's paid members increased by about 22 million.
10%
Going into 2018, management was targeting a 10% operating margin, up from 7% in 2017. The company pulled it off, finishing the year with a 10.2% operating margin.
13%
Netflix expects its operating margin to continue rising in 2018. "Our multi-year plan is to keep significantly growing our content while increasing our revenue faster to expand our operating margins," management said in the company's fourth-quarter shareholder letter. Specifically, Netflix is targeting a full-year operating margin of 13%, up from 10% in 2018.
In 2019, investors should look to see whether Netflix can maintain its momentum internationally and domestically. In addition, investors should watch to see if the company can hit its target operating margin.
