Netflix beats Q4 earnings expectations, revenue rises, strong subscriber growth, positive outlook

From Nasdaq: 2025-01-22 09:39:00

Netflix (NFLX) shares surged over 14% in pre-market trading after reporting Q4 2024 earnings of $4.27 per share, beating estimates by 1.67%. Revenues of $10.24 billion were up 16% year over year. Netflix added 18.91 million subscribers in Q4, totaling 301.63 million globally. The company will no longer report paid quarterly memberships or revenue per subscriber starting in Q1 2025.

Subscriber growth drove Netflix’s Q4 revenues, with over 750 million broadband households and $650 billion in entertainment revenues in markets it operates. The company added 18.91 million subscribers in Q4, with ad-supported plans accounting for 55% of sign-ups in ad countries. Netflix forecasts a revenue increase of 11% in Q1 2025 and projects an operating margin of 29% for 2025.

In Q4, Netflix saw revenue growth across regions, with the United States and Canada leading at $4.51 billion. The company’s paid subscriber base increased in all regions, with EMEA at $3.28 billion, LATAM at $1.22 billion, and APAC at $1.21 billion. Operating income rose 51.9% year over year, with an expanded margin of 22.2%.

Netflix reported $7.8 billion in cash and cash equivalents, $15.57 billion in total debt, and $23.24 billion in streaming content obligations as of Dec. 31, 2024. Free cash flow was $1.4 billion in Q4. The company repurchased 9.9 million shares for $6.2 billion during the year and has approved an additional $15 billion for buybacks.

For Q1 2025, Netflix anticipates revenues to grow by 11%, reaching $10.416 billion. Earnings are projected at $5.58 per share. Full-year 2025 revenue guidance is set between $43.5-$44.5 billion. The company aims for a 29% operating margin in 2025. Netflix’s strong performance is attributed to hit series like Squid Game and strategic content licensing deals.

Netflix’s outlook for 2025 is optimistic, with expectations of healthy member growth and increased ad revenues. The company’s focus on expanding its content offerings and enhancing user experience positions it for continued success. With a diverse portfolio of popular shows and films, Netflix remains a key player in the streaming industry.



Read more at Nasdaq: Netflix Q4 Earnings Beat, Revenues Rise Y/Y on Subscriber Gain