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Mar 31, 2024
Netflix Q1 2024 Earnings Report
Netflix's Q1 2024 results showed strong growth with increased revenue, operating income, and operating margin compared to Q1 2023.
Key Takeaways
Netflix had a strong start to 2024, with revenue up 15%, operating income up 54%, and operating margin rising to 28%. The company forecasts continued revenue growth and an increased operating margin for FY24.
Revenue increased by 15% year-over-year, driven by membership growth and pricing.
Operating income grew by 54% year-over-year, exceeding forecasts due to higher revenue and content spend timing.
Global streaming paid memberships reached 269.60 million, a 16% increase year-over-year.
The ads membership grew 65% quarter-over-quarter, with over 40% of signups in ads markets coming from the ads plan.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
For Q2 2024, Netflix forecasts revenue growth of 16% and expects paid net additions to be lower than in Q1 2024 due to seasonality. For the full year 2024, the company anticipates revenue growth of 13% to 15% and an operating margin of 25%.
Positive Outlook
- Healthy revenue growth of 13% to 15% is expected for the full year 2024.
- Operating margin is expected to reach 25% for FY24.
- Global ARM is forecasted to increase year-over-year on a F/X neutral basis in Q2.
- The company is focused on sustaining healthy revenue growth, expanding operating margin, and growing free cash flow.
- A strong slate of content is expected to drive engagement and growth.
Challenges Ahead
- Paid net additions are expected to be lower in Q2 2024 compared to Q1 2024 due to typical seasonality.
- Revenue growth in Q2 is significantly impacted by price changes in Argentina and the devaluation of the local currency.
- Foreign exchange rates may fluctuate and impact the operating margin despite risk management efforts.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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