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Jun 30, 2024
Netflix Q2 2024 Earnings Report
Reported a robust second quarter with strong revenue growth and improved operating margin.
Key Takeaways
Netflix had a strong Q2 with 17% revenue growth and an operating margin of 27%. The company is scaling its ads business and investing in its entertainment offering. Full year 2024 reported revenue growth is now expected to be 14% to 15%, and an operating margin of 26%.
Revenue grew by 17% year-over-year, driven by a 16% increase in average paid memberships.
Operating margin improved to 27% compared to 22% in the previous year.
Ads tier membership increased by 34% quarter-over-quarter.
Began testing a new, simpler and more intuitive TV homepage in June, which we believe will significantly improve the discovery experience on Netflix.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
For Q3 2024, Netflix expects revenue growth of 14% year over year. For the full year 2024, the company now expects revenue growth of 14% to 15% and an operating margin of 26%.
Positive Outlook
- Expect revenue growth of 14% year over year in Q3 2024.
- Projected full year revenue growth of 14% to 15%.
- Expect 2024 operating margin of 26%.
- Solid membership growth trends and business momentum.
- Ongoing expense discipline.
Challenges Ahead
- Paid net additions are expected to be lower than Q3 2023.
- Global ARM on a reported basis is expected to be roughly flat year over year in Q3.
- Strengthening of the US dollar vs. most other currencies could offset revenue.
- Scaling faster than our ability to monetize our growing ad inventory.
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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