What you need to know ahead of Netflix’s Earnings Q2 2024
What You Need To Know Ahead of Netflix's Q2 Earnings
Investors have been binging on Netflix stock this year, creating anticipation for the streaming company's latest second quarter earnings report, which will be released after the market closes on 18th July.
Investors are likely to monitor whether the streaming giant can keep increasing its subscriber base as it aims to expand its sports entertainment offerings.
Netflix investors will be watching to see if the company can sustain its momentum after several quarters of subscriber growth. In the first quarter of 2024, Netflix reported 269.6 million streaming subscribers, a 16% increase from the same period the previous year. This growth has been driven by the company's efforts to crack down on password sharing.
Moreover, for second quarter Netflix anticipates a revenue growth of 16% YoY. Also, the streaming giant expects a decrease in paid net additions compared to Q1 2024, attributed to typical seasonal patterns. (Source: Graniteshares)
Apart from this, on Netlfix's Sports Entertainment segment, the company has recently announced several deals to enhance its sports entertainment offerings, including broadcasting National Football League (NFL) games on Christmas Day and World Wrestling Entertainment (WWE) events.
Advertising margins are also being closely monitored, with the company expecting them to exceed 50%, which is impressive. However, this segment currently plays a minor role in Netflix's overall revenue and profits, so it isn't expected to be a significant driver of the company's performance.
Netflix has reported an annual sales growth of 16% over the past five years, significantly higher than the market's 7%. It has maintained an operating margin of 20.6%, surpassing the market's 18.4%. Additionally, its return on invested capital is 16.5%, notably higher than the market's 12.1%.
Moreover, Netflix for Q1 2024 reported subscriber growth of 16% YoY with another 9 million-plus subscribers added during the first quarter bringing the total up to 269.60 million subscribers as of March 31. The comany eported revenue of $9.37 billion, which increased by 14.8% compared to the same period last year driven by various revenue strategies such as efforts to combat password-sharing, the introduction of an ad-supported tier, and recent price adjustments on specific subscription plan. (Source: Graniteshares)
As of 15th July, Netflix shares have risen by over 34% since the beginning of 2024, reaching $656.45.
Sources:
1. Investopedia
2. Quartz
Visit Us: https://graniteshares.com/institutional/uk/en-uk/
Capital at Risk | Sophisticated Investors Only
Investors have been binging on Netflix stock this year, creating anticipation for the streaming company's latest second quarter earnings report, which will be released after the market closes on 18th July.
Investors are likely to monitor whether the streaming giant can keep increasing its subscriber base as it aims to expand its sports entertainment offerings.
Netflix investors will be watching to see if the company can sustain its momentum after several quarters of subscriber growth. In the first quarter of 2024, Netflix reported 269.6 million streaming subscribers, a 16% increase from the same period the previous year. This growth has been driven by the company's efforts to crack down on password sharing.
Moreover, for second quarter Netflix anticipates a revenue growth of 16% YoY. Also, the streaming giant expects a decrease in paid net additions compared to Q1 2024, attributed to typical seasonal patterns. (Source: Graniteshares)
Apart from this, on Netlfix's Sports Entertainment segment, the company has recently announced several deals to enhance its sports entertainment offerings, including broadcasting National Football League (NFL) games on Christmas Day and World Wrestling Entertainment (WWE) events.
Advertising margins are also being closely monitored, with the company expecting them to exceed 50%, which is impressive. However, this segment currently plays a minor role in Netflix's overall revenue and profits, so it isn't expected to be a significant driver of the company's performance.
Netflix has reported an annual sales growth of 16% over the past five years, significantly higher than the market's 7%. It has maintained an operating margin of 20.6%, surpassing the market's 18.4%. Additionally, its return on invested capital is 16.5%, notably higher than the market's 12.1%.
Moreover, Netflix for Q1 2024 reported subscriber growth of 16% YoY with another 9 million-plus subscribers added during the first quarter bringing the total up to 269.60 million subscribers as of March 31. The comany eported revenue of $9.37 billion, which increased by 14.8% compared to the same period last year driven by various revenue strategies such as efforts to combat password-sharing, the introduction of an ad-supported tier, and recent price adjustments on specific subscription plan. (Source: Graniteshares)
As of 15th July, Netflix shares have risen by over 34% since the beginning of 2024, reaching $656.45.
Sources:
1. Investopedia
2. Quartz
Visit Us: https://graniteshares.com/institutional/uk/en-uk/
Capital at Risk | Sophisticated Investors Only
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