Netflix stock (NFLX) has jumped 4.1% postmarket following a fourth-quarter earnings report where the company easily cleared Street and management expectations for subscriber growth – and narrowly cleared the bar on its newfound top focus of revenue. Revenues grew 1.9% year-over-year to $7.85B, and the company added a net 7.66M subscribers globally to hit 230.75M total memberships. The company had expected 4.5M net adds, while Wall Street was a bit more cautious, forecasting 4.1M net adds. While revenue was up 1.9% year over year, the company’s profit for Q4 came in well bellow Netflix’s own projection of 36 cents per share.

This is the first quarter that Netflix’s new ad-supported service is included in its earnings results. The company launched this cheaper tier in November, but has not disclosed what portion of the new subscriptions are from users who have opted for this service. The streamer added 7.66 million net new subscribers in Q4, compared to its own estimation of 4.5 million additions. And Netflix ended 2022 with 230.75 million worldwide, smashing its previous target of 227.59 million. 

The company also disclosed that co-CEO Reed Hastings would be stepping down from his position and transitioning to the post of executive chairman. Greg Peters, the company’s chief operating officer has been promoted to co-CEO alongside the already-established Ted Sarandos.