From Morningstar:

Netflix reported a rise in fourth-quarter subscriber additions and average revenue per member (ARM) after several quarters of decline, leading to significant sales growth. Fourth-quarter revenue increased 13% from the previous year and Netflix added over 13 million net global subscribers. The firm’s operating margin was 17% in the fourth quarter and over 20% for the full year, up nearly three percentage points from 2022.

Netflix added 2.8 million net subscribers in the US and Canada, with positive growth across all regions. ARM grew 1% year over year in the fourth quarter and Netflix plans to increase ARM on the back of its advertising revenue stream. The firm’s operating margin is predicted to be 24% in 2024.

Subscription prices in the US, UK, and France have increased, leading to a 1% ARM growth in the fourth quarter. The company has plans to further increase ARM in the coming years. Free cash flow was about $7 billion in 2023, but about $1 billion in anticipated content spending was delayed due to the strikes. The firm is projected to generate over $6 billion in free cash flow in 2024.



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