Summary by Moomoo AI
Netflix reported strong Q3 2024 results with revenue growing 15% YoY to $9.8B and operating margin expanding to 30% from 22% last year. The company added 5.1M paid subscribers, bringing total memberships to 282.7M. Operating income increased 52% YoY to $2.9B, while EPS rose 45% to $5.40.The company raised its 2024 outlook, now expecting 15% revenue growth (high end of previous 14-15% range) and 27% operating margin (up from 26%). The advertising tier showed promising growth with 35% QoQ membership increase and over 50% of new sign-ups in ads countries. Free cash flow guidance for 2024 was raised to $6.0B-$6.5B.Looking ahead to 2025, Netflix projects revenue of $43B-$44B (11-13% growth) with a 28% operating margin target. The company plans to expand its content slate with major releases including Squid Game S2, high-profile live events like the Jake Paul vs. Mike Tyson boxing match, and two NFL games on Christmas Day. Recent price increases were implemented in several markets including EMEA and Japan.
