The earnings call reflects a generally positive outlook for Netflix, with strong subscriber growth, significant achievements in advertising revenue, and successful content strategies. However, challenges remain, particularly with FX volatility and increasing content spending.

Company Guidance

During Netflix's Q4 2024 earnings call, the company provided guidance on various metrics and strategic initiatives for 2025. Despite disruptions from Southern California wildfires, there was no significant impact on cash content spending for 2025. Netflix reported 19 million subscriber additions, attributing broad strength across content categories rather than any single event. The company highlighted that its advertising plan accounted for over 55% of sign-ups in ad-supported countries, achieving a 30% quarter-over-quarter increase in membership. The engagement of ad-plan members was similar to non-ad members, with ad revenue doubling year-over-year and expected to double again. Netflix plans to spend $18 billion on content in 2025, up from $17 billion in 2024, with long-term growth opportunities and disciplined investment strategies. The company expects operating margins to benefit from high single-digit content amortization growth and strategic investments in product and engineering, particularly in ads, live events, and gaming capabilities.

Strong Subscriber Growth

Netflix added 19 million subscribers, driven by a broad slate of content across regions, not just major events like NFL games or Jake Paul fights.

Advertising Revenue Growth

Ads plan sign-ups represented over 55% of new memberships across ads countries in Q4. Ads revenue doubled year-over-year and is expected to double again in 2025.

Successful Launch of Ad Tech Stack

Netflix launched its own ad tech stack in Canada, showing promising revenue growth and plans to roll out in the U.S. in 2025.

Content Achievements

Movies like Carry-On performed well without theatrical releases, and Netflix secured rights to significant sports events like the FIFA Women's World Cup.

Video Game Engagement

Games like Squid Game Unleashed reached #1 in action games in app stores in 107 countries, showing positive impacts on subscriber acquisition and retention.

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Analyst Q&A - Earnings Call

Daniel Salmon

New Street

Question: Given the need to ensure safety and well-being of cast and crews, has there been any disruption to your L.A.-based productions owing to the wildfires? If so, can you please quantify the impact on this year's cash content spending?

1 Answers

Jason Helfstein

Oppenheimer

Question: Is it fair to assume that most of the upside in the 19 million subscriber additions came from the Jake Paul and the Christmas Day football games? And how was the attrition or retention, I guess, post the Christmas Day games versus normal post-holiday levels?

2 Answers

Steven Cahall

Wells Fargo

Question: The U.S. dollar has strengthened since your last results, and you said that you'll tend to underperform your margin targets when the dollar is stronger. What FX volatility do you think you can successfully hedge out in 2025? And what are the best ways to estimate the impact of currency movements, net of hedging?

1 Answers

Brian Pitz

BMO Capital

Question: The advertising user base is growing quickly and your ad tech has been ramping for almost a year. What are your biggest learnings and perhaps hurdles for advertising monetization in 2025?

1 Answers

Question: The advertising user base is growing quickly and your ad tech has been ramping for almost a year. What are your biggest learnings and perhaps hurdles for advertising monetization in 2025?

Jessica Reif Ehrlich

Bank of America Securities

Question: On advertising, do you have all the tech and tools you need to significantly scale up and move from the crawl to walk phase?

1 Answers

Question: On advertising, do you have all the tech and tools you need to significantly scale up and move from the crawl to walk phase?

Benjamin Swinburne

Morgan Stanley

Question: Do the strong viewing numbers for the NFL games leave you more interested in full season sports rights for Netflix? Or do you still see full season sports rights as generally unattractive for Netflix?

1 Answers

Richard Greenfield

LightShed Partners

Question: Has the fight and WWE Raw results influenced your decision process on additional rights like the UFC?

1 Answers

Question: Has the fight and WWE Raw results influenced your decision process on additional rights like the UFC?

John Blackledge

TD Cowen

Question: Can you please talk about the drivers of raising your 2025 operating margin guidance? What are the biggest points of leverage driving higher margins this year?

1 Answers

Question: Can you please talk about the drivers of raising your 2025 operating margin guidance? What are the biggest points of leverage driving higher margins this year?

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Netflix (NFLX) Earnings, Revenues Date & History

The upcoming earnings date is based on a company’s previous reporting, and may be updated when the actual date is announced

Daily Earnings Calendar >

NFLX Earnings History

Report Date	Fiscal Quarter	Forecast / EPS	Last Year's EPS	EPS YoY Change	Slides	Play Transcript
Oct 16, 2018	2018 (Q3)	- / 0.89	0.29	206.90% (+0.60)	―	―
Jan 17, 2019	2018 (Q4)	- / 0.30	0.41	-26.83% (-0.11)	―	―
Apr 16, 2019	2019 (Q1)	- / 0.76	0.64	18.75% (+0.12)	―	―
Jul 17, 2019	2019 (Q2)	- / 0.60	0.85	-29.41% (-0.25)	―	―
Oct 16, 2019	2019 (Q3)	- / 1.47	0.89	65.17% (+0.58)	―	―
Jan 21, 2020	2019 (Q4)	- / 1.30	0.3	333.33% (+1.00)	―	―
Apr 21, 2020	2020 (Q1)	- / 1.57	0.76	106.58% (+0.81)	―	―
Jul 16, 2020	2020 (Q2)	- / 1.59	0.6	165.00% (+0.99)	―	―
Oct 20, 2020	2020 (Q3)	- / 1.74	1.47	18.37% (+0.27)	―	―
Jan 19, 2021	2020 (Q4)	- / 1.19	1.3	-8.46% (-0.11)	―	―

The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.

Beat

Missed

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NFLX Earnings-Related Price Changes

Report Date	Price 1 Day Before	Price 1 Day After	Percentage Change
Jan 21, 2025	$869.68	$953.99	+9.69%
Oct 17, 2024	$687.65	$763.89	+11.09%
Jul 18, 2024	$643.04	$633.34	-1.51%
Apr 18, 2024	$610.56	$555.04	-9.09%

Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.

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