NASDAQ$NFLX

Netflix, Inc. · Q3 2024 earnings

Q3 2024 earnings · · Investor relations

Briefing

Netflix's Q3 2024 earnings reflected strong revenue growth and operating margin expansion.

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.

Headline financials

Total Revenue

$9.83B

Previous: $8.54B+15.0%
EPS (adj)

$5.40

Previous: $3.73+44.8%
Operating Margin

29.6%

No prior period
Capital Expenditures

-$127M

Previous: -$104M-22.1%
Net Income

$2.36B

Previous: $1.68B+40.9%
Operating Income

$2.91B

Previous: $1.92B+51.8%
Gross Profit

$4.7B

Previous: $3.61B+30.3%
Stock-Based Comp

$65.7M

Previous: $79.7M-17.6%

Revenue & EPS history

Netflix · Revenue · Quarterly

$9.83B

Q3 2024+15%vs Q3 2023
Beat estimate in 10 of 15 quarters(67%)
ActualEstimate

Revenue by segment

Netflix · $8.52B total across 4 segments · Q3 2023

  • UCAN
    $3.74B+3.7%
  • EMEA
    $2.69B+13.3%
  • LATAM
    $1.14B+11.6%
  • APAC
    $948M+6.6%

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%.

Tailwinds

  • 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.

Headwinds

  • 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.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q3 2024

Historical avgQ3 2024

+1.0%

Avg return

Earnings day

+0.2%

Avg return

5 days after

+2.0%

Avg return

30 days after

47%

34 / 73 earnings

Positive

+50.1%

Q4 2012

Best reaction

-33.1%

Q1 2022

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-1.3%-4.6%-7.9%
Q4 2025+2.6%-13.5%-19.2%
Q3 2025-5.1%-11.8%-16.0%
Q2 2025-5.1%-7.6%-2.8%
Q1 2025+1.5%+7.9%+22.5%
Q4 2024+11.2%+13.9%+19.4%
Q3 2024+8.8%+8.9%+17.4%
Q2 2024-2.2%-0.7%+4.1%
Q1 2024-9.6%-5.9%+1.2%
Q4 2023+12.2%+17.4%+21.2%
Q3 2023+12.9%+14.4%+31.0%
Q2 2023-7.9%-9.8%-14.8%
Q1 2023-2.9%-1.4%+11.6%
Q4 2022+5.0%+11.5%+6.6%
Q3 2022+11.1%+18.1%+20.5%
Q2 2022+13.4%+15.5%+28.4%
Q1 2022-33.1%-36.2%-45.7%
Q4 2021-22.9%-29.0%-24.1%
Q3 2021-2.0%+4.2%+6.9%
Q2 2021-3.5%-3.2%+2.1%
Q1 2021-8.2%-8.8%-9.5%
Q4 2020+17.7%+13.5%+10.1%
Q3 2020-7.9%-8.0%-8.7%
Q2 2020-5.8%-6.3%-7.8%
Q1 2020-3.7%-2.9%-0.3%
Q4 2019-4.0%+4.0%+13.6%
Q3 2019+3.2%-2.2%+3.8%
Q2 2019-11.1%-15.1%-17.3%
Q1 2019+1.7%+3.3%+3.0%
Q4 2018-3.5%-7.5%+1.6%
Q3 2018+9.5%-0.1%-12.9%
Q2 2018-4.1%-8.8%-17.5%
Q1 2018+7.8%+5.2%+5.3%
Q4 2017+13.5%+24.6%+27.5%
Q3 2017-0.0%-2.7%-3.7%
Q2 2017+14.0%+17.0%+5.5%
Q1 2017+0.3%-0.0%+7.2%
Q4 2016+4.2%+3.4%+7.0%
Q3 2016+17.1%+25.7%+13.5%
Q2 2016-12.8%-12.7%-2.1%
Q1 2016-15.4%
Q4 2015+3.6%
Q3 2015-7.9%
Q2 2015+15.4%
Q1 2015+17.4%
Q4 2014+21.3%
Q3 2014-19.5%
Q2 2014-2.9%
Q1 2014+7.9%
Q4 2013+18.3%
Q3 2013-3.3%
Q2 2013-5.4%
Q1 2013+32.8%
Q4 2012+50.1%
Q3 2012-9.8%
Q2 2012-24.6%
Q1 2012-17.4%
Q4 2011-5.2%
Q3 2011+6.0%
Q2 2011-0.1%
Q1 2011+1.7%
Q4 2010-6.0%
Q3 2010+7.0%
Q2 2010-2.4%
Q1 2009+1.1%
Q1 2010-0.1%
Q4 2009-3.5%
Q4 2007-3.5%
Q3 2008-1.2%
Q3 2009-1.2%
Q2 2008+3.1%
Q2 2009+3.1%
Q4 2008+3.1%

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