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Dec 31, 2024
Netflix Q4 2024 Earnings Report
Netflix experienced strong growth and profitability, exceeding expectations in Q4 2024.
Key Takeaways
Netflix's Q4 2024 saw a 16% increase in revenue year-over-year, driven by a record 19 million paid net additions. Operating income rose by 52% year-over-year. The company forecasts continued growth into 2025, with revenue expected to reach $43.5-$44.5 billion and an operating margin of 29%.
Revenue increased by 16% year-over-year, driven by 19M paid net adds.
Operating income increased by 52% year-over-year.
Netflix finished 2024 with 302M memberships.
The company forecasts 2025 revenue of $43.5-$44.5B and an operating margin of 29%.
Revenue by Segment
Forward Guidance
Netflix anticipates revenue between $10.366 and $10.576 billion for Q1 2025, representing an 11.2% year-over-year growth. They are also targeting a 29% operating margin for the full year 2025.
Positive Outlook
- Continued healthy member growth
- Modest F/X neutral ARM growth
- Rough doubling of ad revenue
- Improved business fundamentals
- Expected carryover benefit of stronger-than-forecasted Q4’24 performance
Challenges Ahead
- Timing of price changes
- Seasonality of ads business
- Strengthening of the US dollar
- Cash outflows related to the timing of certain direct and indirect tax deposits
- Material swings in F/X
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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