Netflix (NFLX, Financial) reported a robust performance for its 2024 fiscal third quarter, surpassing Wall Street expectations. The company achieved a revenue of $9.825 billion, a 15% increase from the previous year's $8.542 billion. Net income rose by 41% to $2.364 billion, while earnings per share (EPS) increased to $5.40 from $3.73, significantly beating analysts' forecasts.
The streaming giant also offered an optimistic outlook for the next quarter, anticipating both revenue and EPS to exceed market predictions. This optimistic guidance led to a nearly 5% rise in Netflix's stock during after-hours trading.
In terms of regional performance, Netflix saw substantial revenue growth across all major markets: the US and Canada brought in $4.322 billion, Europe, the Middle East, and Africa $3.133 billion, Latin America $1.241 billion, and Asia-Pacific $1.128 billion. Operating profit increased to $2.909 billion with a margin of 29.6%.
Netflix reported global subscriber growth as well, reaching 282.72 million paid users, surpassing forecasts. Despite a reduction in new subscribers compared to the previous year, the company still exceeded analyst expectations by adding 5.07 million new users globally.
Looking forward, Netflix projects a 15% revenue growth year-over-year for the fourth quarter of 2024, with EPS expected to reach $4.23. For fiscal year 2025, the company anticipates revenues between $43 billion and $44 billion, indicating an 11% to 13% increase from 2024.
In trading, Netflix saw its share price fall by 2.04% to $687.65 pre-announcement, but it surged to $720.10 post-announcement, reflecting a 4.72% increase.
