2024

Strong

Gains

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 Neither the author, Tim Fries, nor this website, The Tokenist, provide financial advice. Please consult our&nbsp;<a href="https://tokenist.com/terms-of-service/" style="text-decoration:underline;color:#3c7b7b" target="_blank" rel="noopener noreferrer nofollow" class="deco-link">website policy</a>&nbsp;prior to making financial decisions.
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<p class="has-drop-cap">Netflix Inc. (NASDAQ: NFLX) <a aria-label="delivered (opens in a new tab)" href="https://s22.q4cdn.com/959853165/files/doc_financials/2024/q3/FINAL-Q3-24-Shareholder-Letter.pdf" target="_blank" rel="noopener noreferrer nofollow" class="deco-link">delivered</a> a stellar third-quarter earnings report on Thursday, surpassing analyst expectations and demonstrating robust growth across key metrics. The streaming giant’s performance has bolstered investor confidence, as reflected in the stock’s <a href="https://tokenist.com/investing/how-to-trade-after-hours/" rel="noopener noreferrer nofollow" class="deco-link">pre-market surge</a> today with the stock up over 6% at the time of writing (6:51 AM EDT).</p>
<h3 id="netflix-s-financial-performance-and-ad-tier-success-in-q3-2024">Netflix’s Financial Performance and Ad-Tier Success in Q3 2024</h3>
<p>Netflix reported earnings per share of $5.40, beating the LSEG consensus estimate of $5.12. Revenue for the quarter reached $9.83 billion, slightly above the $9.77 billion analyst expectation. <br><br>The company’s Q3 revenue grew 15% year over year, while its operating margin expanded to 30%, up from 22% in the same period last year. Free cash flow also saw a significant boost, totaling $2.2 billion compared to $1.9 billion in Q3 2023.</p>
<p>The streaming service’s ad-supported tier showed remarkable progress, with membership growing 35% quarter over quarter. This tier now accounts for over 50% of sign-ups in countries where it’s available. Notably, engagement levels on the ad-supported plan are comparable to those of the standard plan in the 12 countries where ads are offered.</p>
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<h3 id="netflix-stock-gains-in-premarket-trading">Netflix Stock Gains in Premarket Trading</h3>
<p>Looking ahead, Netflix projects Q4 revenue to rise 14.7%, with full-year 2024 revenue growth expected to hit 15%. The company’s 2025 revenue forecast ranges between $43 billion and $44 billion, representing an 11% to 13% growth. Netflix also anticipates reaching a critical ad subscriber scale in all its ad-supported countries by 2025.</p>
<p>These results and projections paint a promising picture for Netflix investors. Despite industry challenges, the company’s continued growth, successful monetization strategies, and healthy engagement levels suggest a strong market position. <br><br>Improved free cash flow and profitability, coupled with the potential for long-term margin expansion, further enhance the investment case. The market’s initial reaction has been positive, with Netflix shares up 6.23% in pre-market trading, reaching $730.50 as of 6:51 AM EDT.</p> <iframe src="https://tokenist.substack.com/embed" width="100%" height="320" style="border:1px solid #EEE; background:white;" frameborder="0" scrolling="no"></iframe>
<p><em>Disclaimer: The author does not hold or have a position in any securities discussed in the article.</em></p>
<h3 id="br"><br></h3>
<p>The post <a rel="noopener noreferrer nofollow" href="https://tokenist.com/netflix-shares-gain-after-strong-q3-performance-and-ad-tier-growth/">Netflix Shares Gain After Strong Q3 Performance and Ad Tier Growth</a> appeared first on <a rel="noopener noreferrer nofollow" href="https://tokenist.com">Tokenist</a>.</p>

Netflix Shares Gain After Strong Q3 Performance and Ad Tier Growth

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