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    NETFLIX (NFLX)

    Q1 2024 Earnings Summary

    Reported on Jan 4, 2025 (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.