Netflix has reported its Q4 2024 results, surpassing analysts' consensus expectations. The company demonstrated strong momentum in both revenue (the highest in 2024) and the largest quarterly increase in new subscribers in over a year.
Start investing today or test a free demo
Open real account TRY DEMO Download mobile app Download mobile appFor Q4, Netflix posted revenues of $10.25 billion, a 16% year-over-year increase. This result exceeds consensus estimates by $0.14 billion, marking the highest quarterly revenue in the company’s history. The impressive figures are attributed to a strong rise in paid subscriptions, which surpassed 300 million accounts in Q4. This represents an increase of 18.91 million net new subscribers—the largest in Netflix’s history (over three times the growth of the previous quarter and 44% higher than the same period last year).
The strong quarter was primarily driven by the success of Netflix’s productions and an unexpectedly successful venture into streaming live sports events. The second season of Squid Game proved to be a significantly bigger success than anticipated and, according to the shareholder letter, could become the most-watched season of any original production in Netflix’s history. Simultaneously, the Jake Paul vs. Mike Tyson fight was a massive hit, and last year’s Christmas NFL games set a new viewership record for NFL streaming, with average of 24.1 million and 24.3 million viewers.
On the downside, the operating margin for the quarter fell seasonally to its lowest level in 2024, at 22.2% (a 7.4 percentage point decrease compared to the previous quarter). However, it is worth noting that this figure still exceeded the company’s forecasts and was 5.3 percentage points higher than the margin from a year ago. Overall, Netflix achieved a full-year 2024 operating margin of 27% (+6 percentage points year-over-year).
Diluted earnings per share (EPS) came in at $4.27, more than doubling the previous year’s figure.
Q4 Results and Q1 2025 Forecast. Source: Netflix
For Q1’25, the company expects to maintain strong profitability, forecasting a 28.2% operating margin on revenues of $10.4 billion. The projected year-over-year growth of 11.2% is slightly lower than in Q1 last year, though this is influenced by a higher base effect. Additionally, the company expects a record diluted EPS of $5.58.
With the anticipated return of fan-favorite series such as Wednesday and Stranger Things, along with continued momentum in the sports segment, Netflix enters the new year with optimism, a sentiment seemingly shared by investors. Strong results for the last quarter and solid forecasts for the first three months of the new year have propelled the company’s after-hours trading shares up by over 11%.
Netflix’s after-hours trading reaches new all-time highs with over 11% growth. Source: xStation
The content of this report has been created by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, (KRS number 0000217580) and supervised by Polish Supervision Authority ( No. DDM-M-4021-57-1/2005). This material is a marketing communication within the meaning of Art. 24 (3) of Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Directive 2002/92/EC and Directive 2011/61/EU (MiFID II). Marketing communication is not an investment recommendation or information recommending or suggesting an investment strategy within the meaning of Regulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse (market abuse regulation) and repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC and Commission Delegated Regulation (EU) 2016/958 of 9 March 2016 supplementing Regulation (EU) No 596/2014 of the European Parliament and of the Council with regard to regulatory technical standards for the technical arrangements for objective presentation of investment recommendations or other information recommending or suggesting an investment strategy and for disclosure of particular interests or indications of conflicts of interest or any other advice, including in the area of investment advisory, within the meaning of the Trading in Financial Instruments Act of 29 July 2005 (i.e. Journal of Laws 2019, item 875, as amended). The marketing communication is prepared with the highest diligence, objectivity, presents the facts known to the author on the date of preparation and is devoid of any evaluation elements. The marketing communication is prepared without considering the client’s needs, his individual financial situation and does not present any investment strategy in any way. The marketing communication does not constitute an offer of sale, offering, subscription, invitation to purchase, advertisement or promotion of any financial instruments. XTB S.A. is not liable for any client’s actions or omissions, in particular for the acquisition or disposal of financial instruments, undertaken on the basis of the information contained in this marketing communication. In the event that the marketing communication contains any information about any results regarding the financial instruments indicated therein, these do not constitute any guarantee or forecast regarding the future results.
