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Sep 30, 2024
Netflix Q3 2024 Earnings Report
Netflix's Q3 2024 earnings reflected strong revenue growth and operating margin expansion.
Key Takeaways
Netflix's Q3 2024 saw a 15% year-over-year revenue increase, reaching $9.825 billion, and an operating margin of 30%, up from 22% in the previous year. The company reported EPS of $5.40, a 45% increase year-over-year, and global streaming paid memberships reached 282.72 million, a 14.4% increase year-over-year.
Revenue grew by 15% year-over-year, with a 30% operating margin.
Ads membership increased by 35% quarter-over-quarter.
Engagement remained healthy, with increased view hours per member in owner households.
The company delivered a strong content slate, including new series and returning favorites.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
For Q4 2024, Netflix forecasts a 15% revenue growth and an operating margin of 22%. The company anticipates higher paid net additions compared to Q3 2024 due to seasonality and a strong content slate. For the full year 2024, revenue growth is expected to be 15%, with an operating margin of 27%.
Positive Outlook
- Expects paid net additions to be higher in Q4 than in Q3’24 due to normal seasonality and a strong content slate.
- Projects Q4 operating margin of 22%, a five percentage point year-over-year improvement.
- Forecasting 2024 operating margin of 27%, up from 26% previously.
- Expects to deliver solid revenue and profit growth by improving core series and film offering.
- Investing in new growth initiatives like ads and gaming.
Challenges Ahead
- Scaling faster than the ability to monetize the growing ad inventory, creating a short term drag on ARM.
- 2024 programming has been patchier than normal due to last year’s strikes.
- The near term challenge is that we’re 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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