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Dec 31, 2023
Netflix Q4 2023 Earnings Report
Netflix's financial objectives for 2023 were achieved, revenue growth accelerated, operating margin grew, and free cash flow increased.
Key Takeaways
Netflix ended the year with strong growth, achieving key financial objectives set at the start of 2023. Revenue grew by 12%, the operating margin reached 21%, and free cash flow increased to $6.9 billion.
Revenue in Q4 grew 12% year over year, or 13% on a foreign exchange (F/X) neutral basis.
Paid net additions totaled 13.1M in Q4’23, the largest Q4 ever.
Operating income amounted to $1.5B, up from $0.5B in the year ago period, while operating margin improved to 17% vs. 7% in the year ago quarter.
EPS for the fourth quarter was $2.11 compared with $0.12 last year.
Netflix
Netflix
Netflix Revenue by Segment
Revenue by Segment
UCAN Revenue
CapyFin.comEMEA Revenue
CapyFin.comLATAM Revenue
CapyFin.comAPAC Revenue
CapyFin.com Forward Guidance
Netflix anticipates healthy double-digit revenue growth for the full year 2024 on a F/X neutral basis, driven by continued membership growth and improvement in F/X neutral ARM as prices are adjusted.
Positive Outlook
- Healthy double digit revenue growth for the full year 2024 on a F/X neutral basis driven by continued membership growth
- Improvement in F/X neutral ARM as prices are adjusted
- Strong growth in the ads business
- Global ARM to be up year over year on a F/X neutral basis in Q1
- Increasing full year 2024 operating margin forecast from 22%-23% to 24%
Challenges Ahead
- Q1’24 revenue growth includes a three percentage point headwind from F/X on a year over year basis
- Paid net additions to be down sequentially
- Some lumpiness in year to year FCF progression
- Not fully hedged, which is why we are still guiding and managing to a F/X neutral operating margin target.
- Strikes pushing back the launch of some titles
Revenue & Expenses
Visualization of income flow from segment revenue to net income