NASDAQ$NFLX
Netflix, Inc. · Q4 2023 earnings
Q4 2023 earnings · · Investor relations
Briefing
Netflix's financial objectives for 2023 were achieved, revenue growth accelerated, operating margin grew, and free cash flow increased.
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.
Headline financials
Revenue & EPS history
Netflix · Revenue · Quarterly
$8.83B
Revenue by segment
Netflix · $8.52B total across 4 segments · Q3 2023
- UCAN$3.74B+3.7%43.8%
- EMEA$2.69B+13.3%31.6%
- LATAM$1.14B+11.6%13.4%
- APAC$948M+6.6%11.1%
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.
Tailwinds
- 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%
Headwinds
- 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
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 Q4 2023
+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
| Quarter | Report date | Reaction (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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