It’s never a bad idea to make your exit following a win. So it goes with Reed Hastings who is stepping down from the CEO role at a company he helped start more than 25 years ago.
The announcement comes as the streaming giant announced a big rise in subscriber numbers at the end of last year – adding 7.66 million paid subscribers during the fourth quarter, far more than the 4.57 million expected by analysts.
“2022 was a tough year, with a bumpy start but a brighter finish,” the company said in a statement.
“We believe we have a clear path to reaccelerate our revenue growth: continuing to improve all aspects of Netflix, launching paid sharing and building our ads offering. As always, our north stars remain pleasing our members and building even greater profitability over time.”
The stock is currently up just over 7% in after-hours trading
Co-CEO Ted Sarandos will remain in his position, while Greg Peters, most recently Chief Operating Officer, will assume Hastings’ co-CEO role as well as join the company’s board.
“I want to thank Reed for his visionary leadership, mentorship and friendship over the last 20 years,” Sarandos said a statement.
“We’ve all learned so much from his intellectual rigor, honesty and willingness to take big bets — and we look forward to working with him for many more years to come.”
Hastings said in a tweet that he will “serve as Executive Chairman for many years to come,” adding that “Ted & Greg are now co-CEOs. After 15 years together we have a great shorthand & I’m so confident in their leadership. Twice the heart, double the ability to please members & accelerate growth.”
Ted & Greg are now co-CEOs. After 15 years together we have a great shorthand & I’m so confident in their leadership. Twice the heart, double the ability to please members & accelerate growth. Proud to serve as Executive Chairman for many years to come https://t.co/oYc0laqMXQ
— Reed Hastings (@reedhastings) January 19, 2023
It was also announced that Netflix has named Bela Bajaria as Chief Content Officer and Scott Stuber as Chairman of Netflix Film.
In a statement, Hastings added “We start 2023 with renewed momentum as a company and a clear path to reaccelerate our growth.”
Netflix Q4 results compared to Wall Street’s consensus estimates, as compiled by Bloomberg:
- Revenue: $7.85 billion versus $7.86 billion expected
- Adj. earnings per share (EPS): $0.12 versus $0.58 expected
- Subscribers: 7.66 million versus 4.5 million net additions expected