Netflix’s business is going from strength to strength. The on-demand television company is reaping the benefits of the new strategy to put a stop to shared passwords and facilitate access to its films and series with a cheaper entry offer financed in part by advertising, while raising the prices of ad-free packages. The company closed a strong third quarter, with record subscribers, revenue and profits, according to the accounts communicated this Thursday to the United States Securities and Exchange Commission (the SEC).
Netflix had a turnover of 9,825 million dollars between July and September, 15% more than a year before. The company closed the quarter with 282.72 million subscribers, five million more than the previous quarter and 35 million more than a year ago. In addition, it improved its operating margin and cash generation. Profit soared 41%, to $2,364 million.
For the fourth quarter of 2004, the company expects revenue growth of 15%. “We expect paid net adds to be higher in the fourth quarter than in the third, due to normal seasonality and content strength,” the company said in a letter to investors.
That fourth-quarter forecast implies revenue will grow 15% year-over-year for the full year 2024, at the high end of the previous revenue growth forecast of 14%-15%. The operating margin forecast for the entire year also improves by one point, from 26% to 27%, which would represent an increase of six percentage points compared to 2023.
“We are pleased to have accelerated our growth and, looking forward to 2025, we expect to achieve strong growth in revenue and profits by improving our series and film offering and investing in new growth initiatives, such as advertising and games,” the company said. .
For next year, the company has a revenue forecast of 43,000 to 44,000 million dollars, which would represent a growth of 11% to 13% compared to the 38,900 million dollars with which it expects to close this year. We expect revenue growth to be driven by a healthy increase in paid memberships and ARMs. The objective for 2025 is to improve the operating margin by another point, up to 28%. “After achieving strong margin improvement in 2024, we want to balance near-term margin growth with appropriate investment in our business. We still see a lot of room to increase our margins in the long term,” he says.
With all this, it has exceeded analysts’ forecasts. The company has marked its all-time highs on the stock market this month, after appreciating 93% in the last 12 months. The company had a stock market value of $295 billion at the close of trading this Thursday.
(Breaking news. There will be an extension soon)
