Q1 2024 Earnings Summary
Reported on Apr 18, 2024 (After Market Close)
Pre-Earnings Price$610.56Last close (Apr 18, 2024)
Post-Earnings Price$567.88Open (Apr 19, 2024)
Price Change
$-42.68(-6.99%)
- Netflix is achieving healthy revenue growth and expanding profit margins, targeting a 25% margin in 2024, up from 21% in 2023. This demonstrates their commitment to grow margins each year and shows a positive financial trajectory.
- Strong content slate leading to high engagement, with #1 movies and series for multiple weeks, even in a competitive space. This highlights Netflix's ability to attract and retain subscribers through compelling content.
- Rapid growth in their ad-supported tier, with a 65% quarter-over-quarter increase in user base. This expansion into advertising represents a significant new revenue stream with potential for future growth.
- Netflix anticipates revenue growth deceleration for the full year to 13%–15%, down from 15%–16% growth in the first and second quarters.
- The crackdown on password sharing will lead to a loss of viewing hours, negatively impacting engagement metrics in upcoming reports.
- Monetization of the ad-supported tier is lagging behind inventory growth, causing under-monetization and a drag on average revenue per member (ARM).
Research analysts covering NETFLIX.