Q4 2023 Earnings Summary
Reported on Jan 23, 2024 (After Market Close)
Pre-Earnings Price$492.19Last close (Jan 23, 2024)
Post-Earnings Price$537.75Open (Jan 24, 2024)
Price Change
$45.56(+9.26%)
- Netflix expects double-digit FX-neutral revenue growth in 2024, driven by continued member growth, pricing strategy, and scaling of the ads business.
- Planned content spend of up to $17 billion in cash content spend in 2024 to deliver more high-quality original films and series, attracting enormous audiences and enhancing engagement.
- Rapid growth in Netflix's ads business with 70% quarter-over-quarter growth, now at 23 million monthly active users, positioning to capture a share of the $180 billion ad spend shifting from linear to streaming.
- Netflix's engagement has been impacted by its paid sharing initiative, resulting in fewer households using the same account, and relying on these users to spin off and subscribe may pose a risk to growth.
- Netflix's original movies, despite outperforming licensed titles in terms of viewers and viewed hours, may not have the same cultural impact as its TV series, indicating potential challenges in its film strategy.
- The ads business, although growing, is not expected to be a primary driver of revenue in 2024 and will require years to materially impact the overall business, potentially delaying anticipated revenue boosts from this segment.
Research analysts covering NETFLIX.