Shares of Netflix rose 6.1% to $335.05 in after-hours trading as the streaming video pioneer also said it had picked up more subscribers than expected at the end of last year.
"It was a baptism by fire, given Covid and recent challenges within our business," Hastings said in a statement."But they've both managed incredibly well ... so the board and I believe it's the right time to compete my succession." Netflix projected"modest" gains in subscribers through March. It forecast 4% year-over-year growth in revenue during the period with the help of new revenue streams.
To kick-start growth, Netflix introduced a cheaper, ad-supported option in November in 12 countries. It also has announced plans to crack down on password sharing. Net income fell to $55 million or 12 cents per share, from $607 million or $1.33 per share a year earlier. Revenue rose 1.9% to $7.85 billion, in line with expectations.