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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.
Netflix
Netflix
Netflix Revenue by Segment
Revenue by Segment
UCAN Revenue
CapyFin.comEMEA Revenue
CapyFin.comLATAM Revenue
CapyFin.comAPAC Revenue
CapyFin.com 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.
- Recent price changes and a softer content slate led to paid net adds of -0.1M in LATAM.
- Includes a $91M loss from F/X predominantly related to Euro denominated debt remeasurement.
Revenue & Expenses
Visualization of income flow from segment revenue to net income