Q3 2024 Netflix Inc Earnings Call Transcript
Key Points
- Netflix Inc (NFLX) reported a strong financial performance with a 15% revenue growth and a 6-percentage-point improvement in operating margin for 2024.
- The company has maintained healthy engagement levels, with about two hours of viewing per member per day, indicating strong member retention.
- Netflix Inc (NFLX) is expanding its content slate with new seasons of popular shows like 'Wednesday,' 'Squid Games,' and 'Stranger Things,' as well as new projects from renowned creators.
- The company is investing in new initiatives such as games and live events, which are expected to be incremental growth drivers in the coming years.
- Netflix Inc (NFLX) is seeing significant growth in its advertising business, with ads revenue expected to roughly double year-over-year in 2025.
- The company experienced a slight net loss in membership in the Latin America region during Q3, primarily due to recent price changes.
- The Hollywood strikes impacted Netflix Inc (NFLX)'s 2024 content slate, causing delays in the release of some high-profile shows and films.
- Despite the growth in the advertising business, it is not yet a primary driver of revenue and is still scaling its audience and inventory.
- Netflix Inc (NFLX) faces competition from platforms like YouTube, which also competes for viewers' time on TV screens.
- The company's engagement in the US market has been stable but flat, with limited growth in total viewing hours.
I'm Spencer Wang, VP of Finance, IR and Corporate Development. Joining me today are Co-CEOs, Ted Sarandos and Greg Peters; and CFO, Spence Neumann. As a reminder, we will be making forward-looking statements, and actual results may vary.
Questions & Answers
We will now take questions submitted by the analyst community, and we'll begin with questions about our Q4 results and our outlook. The first question comes from Eric Sheridan of Goldman Sachs. Can you please frame your key investment priorities for 2025 and beyond? And how have they evolved in the past 12 to 18 months?
Thanks a lot, Spencer. Let's start with looking into 2025. We're feeling really good about the business. We had a plan to reaccelerate growth and we delivered on that plan. You can see that in our 2024
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