Netflix's official fiscal year 2024 financial report

Netflix Surpasses Q3 Targets: $5.40 EPS, 5.07M New Subscribers, Raises 2024 Margin Outlook

Oct 17, 2024, 08:05 PM

Netflix reported stronger-than-expected financial results for the third quarter of 2024, surpassing analyst estimates on revenue, earnings per share, and subscriber growth. The streaming giant added 5.07 million subscribers during the quarter, bringing its global paid memberships to 282.7 million, a 14% increase year over year. Revenue rose 15% year over year to $9.83 billion, exceeding forecasts of $9.77 billion, while earnings per share climbed 45% to $5.40, outpacing the expected $5.12. Operating margin improved to 30% from 22% in the same period last year, reflecting the company's continued focus on profitability. Free cash flow reached $2.2 billion, surpassing estimates of $1.7 billion. On a currency-neutral basis, revenue growth was 21%. Netflix's ad-supported tier saw membership grow by 35% quarter over quarter, with ad-tier members accounting for over 50% of sign-ups in countries where it's available. Engagement remained strong, averaging around two hours of viewing per day per paid membership. The company increased its operating margin guidance for 2024 to 27% from 26% previously. Looking ahead, Netflix provided an optimistic forecast for the fourth quarter, projecting revenue of $10.13 billion and earnings per share of $4.23, both exceeding analyst expectations. The company anticipates paid net additions to be higher in the fourth quarter than in the third, due to normal seasonality and a strong content slate. For fiscal year 2025, Netflix expects revenue between $43 billion and $44 billion and an operating margin of 28%.