Netflix announces first quarter 2024 financial results, with total subscriber numbers increasing 16% year-on-year to 269.6 million, and sales and net profits also increasing significantly



On April 18, 2024, Netflix, a major streaming service, announced its first quarter financial results for 2024 (January to March). The financial report revealed that the total number of subscribers as of the end of March had reached approximately 270 million, and that sales had reached $9.37 billion (approximately 1.45 trillion yen), a significant increase from the same period last year.

FINAL-Q1-24-Shareholder-Letter.pdf
(PDF file)

https://s22.q4cdn.com/959853165/files/doc_financials/2024/q1/FINAL-Q1-24-Shareholder-Letter.pdf



Netflix blows past earnings estimates as subscribers jump 16%
https://www.cnbc.com/2024/04/18/netflix-nflx-earnings-q1-2024.html

Netflix now has nearly 270 million subscribers after another strong showing to begin 2024 | AP News
https://apnews.com/article/netflix-subscribers-first-quarter-earnings-2024-d0e9759a1bc73419fb2b5047f216b071

Netflix Will Stop Reporting Subscriber Numbers Starting in 2025
https://variety.com/2024/tv/news/netflix-stop-reporting-subscriber-numbers-starting-2025-1235975341/

Netflix's total subscriber base in the first quarter of 2024 increased 16% year-on-year to 269.6 million, far exceeding the analyst forecast of 264.2 million. In addition, revenue increased 14.8% year-on-year to $9.37 billion, and net income increased significantly from $1.35 billion in the same period last year to $2.332 billion (approximately 360 billion yen). Revenue and net income also exceeded analysts' prior forecasts, making 2024 a strong start.

Netflix added approximately 9.3 million subscribers in the first quarter of 2024, including 2.53 million in North America, 2.92 million in Europe, the Middle East and Africa, 1.72 million in Latin America and 2.16 million in the Asia-Pacific market.

Netflix expects sales of $9.49 billion in the second quarter of 2024, slightly below analysts' expectations of $9.54 billion.



Netflix also announced that it will stop reporting subscriber numbers from 2025, even though it has reported increases and decreases in the number of subscribers every quarter. In a letter to shareholders, Netflix pointed out that the company generates multiple revenue sources, such as ad-supported plans and additional member features, and subscription prices vary by country and plan, so the number of members is now just one factor in indicating growth. They argue that 'engagement,' the time spent on the service, rather than the number of members, is the best indicator of customer satisfaction.

In this quarterly financial statement, titles that saw strong viewing numbers in the first quarter of 2024 included ' Griselda ' (66.4 million views), ' The Three-Body Problem ' (39.7 million views), and ' Avatar: The Last Airbender ' (63.8 million views).

Brian Pitts, an analyst at market research firm BMO Capital Markets , predicts that Netflix will earn about $1.5 billion from commercials aired on its ad-supported plans in 2024. Pitts predicts that the company will have more than 41 million subscribers to its low-cost ad-supported plans, and he believes commercial revenues will continue to grow over the next few years.

Netflix CEO Greg Peters said in a video conference call with analysts that financial growth is more important to focus on than quarterly fluctuations in subscriber numbers, saying, 'We think this is a better approach that reflects the evolution of our business.' He also said that the company will make subscriber announcements once it crosses 'major subscriber milestones.'

Ross Benes, an analyst at market research firm eMarketer , said Netflix's decision to move away from quarterly subscriber reporting suggests that management expects subscriber growth to plateau, as the company's efforts to crack down on password sharing have had a major impact. 'Netflix is getting ahead of the curve by moving away from quarterly subscriber reporting,' Benes said.

in Note, Posted by log1h_ik