Summary
Netflix Misses
Netflix (NFLX) reported Quarter December 2024 earnings of $4.27 per share on revenue of $10.2 billion. The consensus earnings estimate was $4.20 per share on revenue of $10.2 billion. The Earnings Whisper number was $4.30 per share. Revenue grew 16.0% on a year-over-year basis.
The company said it expects first quarter earnings of approximately $5.58 per share on revenue of approximately $10.416 billion. The current consensus earnings estimate is $5.96 per share on revenue of $10.63 billion for the quarter ending March 31, 2025. The company also said it expects 2025 revenue of $43.50 billion to $44.50 billion. The current consensus revenue estimate is $43.79 billion for the year ending December 31, 2025.
Netflix is the world's leading streaming entertainment service with 222 million paid memberships in over 190 countries enjoying TV series, documentaries and feature films across a wide variety of genres and languages.
Results
Reported Earnings
$4.27
Earnings Whisper
$4.30
Consensus Estimate
$4.20
Reported Revenue
$10.25 Bil
Revenue Estimate
$10.15 Bil
Growth
Earnings Growth
Revenue Growth
Earnings Release
Netflix Fourth Quarter 2024 Earnings
- In 2024, we executed on our plan to reaccelerate growth.
- For the year, revenue grew 16% and operating margin expanded six points to 27%. Operating income exceeded $10B for the first time in our history.
- In Q4, revenue increased 16% year over year, helped by 19M paid net adds, while operating income rose 52% year over year. We finished 2024 with 302M memberships.
- Our Q4 slate outperformed even our high expectations: Squid Game season 2 is on track to become one of our most watched original series seasons, Carry-On joined our all-time Top 10 films list, the Jake Paul vs. Mike Tyson fight became the most-streamed sporting event ever and on Christmas Day we delivered the two most-streamed NFL games in history.
- Our priorities for 2025 are to:
- Improve our core business with more series and films our members love, an enhanced product experience and growth of our ads business;
- Further develop newer initiatives such as live programming and games; ? Sustain healthy growth - we now forecast 2025 revenue of $43.5-$44.5B (+$0.5B vs. prior forecast, despite the strengthening of the US dollar) and an operating margin of 29%, up one point from our prior forecast.
- We maintain a leadership position in engagement, revenue and profit. We’re focused on improving all aspects of our service and, combined with the return in 2025 of our biggest shows (Squid Game, Wednesday and Stranger Things), we’re optimistic heading into the new year.
For the full earnings release, please go here.
