NFLX — Q4 2024 Earnings Call

Communication Services

Netflix Inc. • Reported: 2025-01-21

EPS Actual

$4.27

Est. $4.20 ▲ Beat

Revenue Actual

$10.2B

Est. $10.1B ▲ Beat

Overall Result

Double Beat

EPS + Revenue vs. estimates

Period

Q4 2024

FY2024 • Reported 2025-01-21

Executive Summary

Netflix reported strong Q4 2024 results with revenue of $10.2 billion, up 16% year-over-year, and added 18.9 million net new subscribers — its best quarter ever for subscriber growth. The company reached 301.7 million paid members globally. Netflix announced it would stop reporting quarterly subscriber numbers starting in 2025.

Key Highlights

Subscribers positive

Record 18.9M net additions

Best subscriber quarter ever with 18.9M net adds, driven by live events and content slate.

Revenue positive

Revenue beats at $10.2B

Revenue grew 16% YoY to $10.2B, with improving ARPU from price increases and ad tier growth.

Live Events positive

Live events strategy working

Jake Paul vs. Tyson fight drew 108M viewers; NFL Christmas Day games averaged 30M viewers each.

Ad Tier positive

Ad tier scaling rapidly

Ad-supported tier memberships grew 30% QoQ, with ad revenue still in early innings.

Guidance positive

Strong 2025 outlook

Guided for 2025 revenue of $43.5-44.5B (13-15% growth) with operating margin of 28%+.

Direct Quotes

Ted Sarandos

Co-CEO • Content Strategy

"Q4 was our best quarter ever for subscriber growth, and it was driven by our content and our live events. The Jake Paul-Tyson fight became the most-streamed live event in history."

Greg Peters

Co-CEO • Advertising

"Our ads business is scaling nicely. We saw 30% quarter-over-quarter growth in ad tier memberships, and we're still in very early days of building this into a major revenue driver."

Spencer Neumann

CFO • Financial Outlook

"Full year 2024 revenue was $39 billion, up 16%, and we expect to accelerate revenue growth modestly in 2025. We're guiding for operating margin of 28% or higher."

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