Netflix's Q3 2024 earnings report

Netflix Exceeds Q2 Subscriber Expectations with 8.05M Adds, Projects $9.73B Q3 Revenue

Jul 18, 2024, 07:52 PM

Netflix reported its Q2 2024 earnings, significantly exceeding expectations with 8.05 million new paid subscribers, nearly double the 4.87 million estimated by analysts. The company’s total subscriber base now stands at approximately 274 million. Despite this strong performance, Netflix provided cautious guidance for Q3, projecting revenue of $9.73 billion, slightly below the $9.83 billion expected by analysts. The company also announced it will stop reporting quarterly subscriber additions in 2025. Analysts remain optimistic, citing popular shows like 'Bridgerton' and NFL games as key drivers of subscriber growth. Netflix has slightly boosted its full-year 2024 revenue growth guidance to 14%-15% and expects an operating margin of 26%. FactSet's consensus expected 4.5 million paid net adds, and some buy-side estimates were as high as 8 million. Some analysts have also raised their price targets significantly.