Netflix reports Q3 revenue up 15% YoY to $9.83B, vs. $9.76B est., paid memberships up 14% to 282.72M, vs. 282.15M est., and net income of $2.4B; NFLX jumps 7%+

LOS ANGELES — Netflix reported earnings after the bell. Here are the results. — Earnings per share: $5.40.

CNBC 2024-10-18 Sarah Whitten

Context & Ripple Effects

Netflix’s Q3 extends a 2024 run in which it had already reported 15% revenue growth in Q1 and 16.8% growth in Q2. Paid memberships rose from 269.6 million in Q1 and 277.65 million in Q2 to 282.72 million, while revenue continued to grow at roughly the same pace.

The comparison is notably stronger than the prior year’s Q3, when revenue growth was 7.8% and paid memberships totaled 247.15 million. The latest results therefore reinforce a materially larger revenue and subscriber base, rather than a one-quarter rebound.

First-order effects

Netflix beat the reported revenue and paid-membership expectations, posted $2.4 billion in net income, and saw NFLX rise more than 7% immediately after the release.
The company enters the next quarter with 282.72 million paid memberships, expanding the base against which it can sustain revenue growth.

Second-order effects

Streaming peers and investors will face a higher benchmark: Netflix has paired double-digit membership growth with double-digit revenue growth across three reported 2024 quarters.
The market reaction increases the near-term importance of earnings execution for Netflix, since the share move reflects results that exceeded already published expectations.

Third-order effects

If this pattern persists, the streaming market may be increasingly judged on the ability to turn a large paid-member base into durable revenue and profit growth, not subscriber additions alone.
The year-over-year comparison suggests scale is becoming more consequential: Netflix’s Q3 membership base was far above the prior year’s, while revenue growth accelerated from that earlier quarter. Whether rivals can match that combination remains uncertain.

The trend: Netflix’s results are one data point in streaming’s shift toward valuing scaled, profitable subscriber platforms rather than growth in isolation.

Discussion

@carnage4life Dare Obasanjo on threads
Netflix's growth strategy of clamping down on password sharing while proving an ad-supported tier as an escape hatch has been an incredible success. The company beat expectations on revenue, profits & new subscribers. The ad tier is helping as 50% of new sign ups are on that ti…
@ewhispers @ewhispers on x
$NFLX Conference Call Summary: We had a plan to accelerate growth, and we delivered on that plan. Consequently, we are feeling really good about 2025. We had a lot of hits in the third quarter, and we have more in the fourth quarter, in addition to live events. We expect to be
@cnbcfastmoney @cnbcfastmoney on x
$NFLX streaming higher on a jump in ad-tier memberships! @karenfinerman @grassosteve @guyadami and @riskreversal on what went right this quarter, what could have been better and why the story continues to be unique: [video]
@munster_gene Gene Munster on x
In non-AI news, $NFLX is up 4% in after hours. The company beat paid net adds by 12% and guided December EPS 8% higher. I've been more cautious on Netflix given much of their revenue reaccelerating we've seen over the past year has been driven by the password crackdown, a tailw…
@zerohedge @zerohedge on x
Goldman on NFLX: “We expect the market to have a muted to positive reaction to Netflix's Q3 '24 earnings report. Key takeaways were that overall revenue slightly exceeded GS/Street estimates, operating margin handily outperformed, and net adds came in below our forecasts”
@garyblack00 Gary Black on x
$NFLX (+4% AH) beat on subs, revs and EPS, and guided to higher than exp 4Q. 3Q: - Net subs adds 5.1M vs 4.5M est - Paid memberships 282.7M vs 281.9 M est - Rev $9.82B vs $9.78B est - EPS $5.40 vs $5.12 est - Free cash flow $2.2B vs $1.7B est 4Q: - Revs $10.13B vs $10.05B est
@zerohedge @zerohedge on x
*NETFLIX 3Q STREAMING PAID NET CHANGE +5.07M, EST. +4.52M *NETFLIX SEES FY 2025 REV $43B TO $44B, EST. $43.4B
@thetranscript_ @thetranscript_ on x
$NFLX: “Engagement on Netflix is healthy: around two hours a day per paid membership on average, despite the impact of paid sharing” [image]
@thetranscript_ @thetranscript_ on x
$NFLX: “Revenue in Q3 grew 15% (21% on a foreign exchange (F/X) neutral basis ), 1% higher than our beginning of quarter forecast....For Q4'24, we forecast 15% revenue growth, or 17% on a F/X neutral basis” [image]
@stockmarketnerd Brad Freeman on x
Snapshot of a strong $NFLX quarter & guide: [image]
@zerohedge @zerohedge on x
NFLX UCAN Q3 subs: 690,000, Exp. 696,658 NFLX LATAM Q3 subs -70,000, Exp. +975,270
@sherman4949 Alex Sherman on x
Netflix CFO says on conf call had the quarter ended a day later, net adds in Latin America would have been up instead of down.
@economyapp @economyapp on x
$NFLX Netflix Q3 FY24: • Members +5M Q/Q to 283M. • Ads tier membership +35% Q/Q. • Revenue +15% Y/Y to $9.8B ($50M beat). • Operating margin 30% (+7pp Y/Y). • EPS $5.40 ($0.28 beat). Q4 FY24 Guidance: • Revenue +15% Y/Y. • Operating magin 22%. [image]
@thetranscript_ @thetranscript_ on x
$NLFX: “Average paid memberships increased 15% year over year as paid net additions in Q3 were 5.1M vs. 8.8M in Q3'23...We expect paid net additions to be higher in Q4 than in Q3'24 due to normal seasonality and a strong content slate.” [image]
@thetranscript_ @thetranscript_ on x
$NFLX: “We're now approaching the second anniversary of the launch of our advertising business and we're making good progress..in Q3, it accounted for over 50% of sign-ups in our ads countries and membership on our ads plan grew 35% quarter over quarter” [image]
@trengriffin Tren Griffin on x
Netflix's free cash flow in Q3 totaled $2.2 billion. For the full year 2024, it expects free cash flow of $6.0 billion-$6.5 billion up from approximately $6 billion due to its higher operating income forecast. When competitors are forced to spend less on content, life is better […
@thetranscript_ @thetranscript_ on x
$NFLX Chief Content Officer: “We're willing to pivot and grow and evolve and innovate instead of saying, 'This is always how it's been done, and we can never change it' or, 'We've said it publicly, so we won't do it.” ... we will sort of just go, 'Okay, maybe we were wrong then,
@thetranscript_ @thetranscript_ on x
Netflix double beat: “In Q3, revenue grew 15% YoY and operating margin was 30% vs. 22% last year. For 2024, we expect revenue growth of 15% (the high end of our 14% to 15% range) & operating margin of 27% (vs 26% previously)” $NFLX: +5% AH More: https://finchat.io/... [image]
@charliebilello Charlie Bilello on x
Netflix revenues hit a record $9.8 billion in Q3 2024, up 15% YoY. Operating profit margin of 29.6% was a record high. 5.1 million paid subscribers were added during the quarter, above estimates of 4.5 million. $NFLX https://bilello.blog/... [image]
@michaelmiraflor Michael J. Miraflor on x
Free Cash Flow monster.
@lucas_shaw Lucas Shaw on x
Netflix has more streaming customers outside the US (198M) than any of its competitors have globally.* *Amazon doesn't count https://www.bloomberg.com/...
@reutersbiz @reutersbiz on x
Netflix picked up 5.1 million streaming subscribers in the third quarter, topping Wall Street estimates by more than 1 million, and said it expected higher customer growth around the holidays when Korean drama ‘Squid Game’ returns. More here: https://www.reuters.com/... [video]
r/wallstreetbets r on reddit
Netflix's Price Hikes Pay Off: 35M New Subs Despite Cracking Down on Password Sharing
@thetranscript_ @thetranscript_ on x
$NFLX outlook: “We expect paid net additions to be higher in Q4 than in Q3'24 due to normal seasonality and a strong content slate.” [image]
@stockmarketnerd Brad Freeman on x
2025 guidance being in line is actually really positive in my view. The $NFLX team is usually prudent.

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