Michael [Last Name Unknown]'s questions to Netflix Inc (NFLX) leadership • Q1 2025
Question
Michael [Last Name Unknown] asked for details on the drivers behind the full-year 29% operating margin forecast, particularly the expected expense ramp in the second half of the year.
Answer
CFO Spencer Neumann confirmed the 29% full-year operating margin forecast, explaining that quarterly fluctuations are normal. He attributed the expected back-half ramp in expenses to the timing of the content slate, with major titles returning in H2, and increased sales and marketing spend to support the slate and ad sales operations.