Revenue
Earnings
Netflix has guided for net income of $2.06 billion, or $4.68 per share, for Q2 2024. Analysts are predicting EPS of $4.74 for Q2. This compares to net income of $1.48 billion, or $3.29 per share, reported in Q2 2023. In Q1 2024, the company reported net income of $2.3 billion, or $5.28 per share.
Points to note
For the second quarter of 2024, Netflix expects revenue to grow 21% on an FX-neutral basis. It expects paid net additions to be lower in Q2 compared to Q1 due to typical seasonality. It also expects global average revenue per membership (ARM) to be up YoY on a FX-neutral basis in the second quarter.
In the first quarter, Netflix added 9.3 million subscribers. Its global paid memberships rose 16% YoY to 269.6 million. ARM rose 1% YoY or 4% on an FX-neutral basis. The company continued to benefit from strong engagement and a strong slate, with engagement remaining healthy despite changes such as paid sharing.
In advertising, Netflix continues to work on scaling its member base and building out its capabilities for advertisers. In Q1, its ads membership grew 65% sequentially.
For the second quarter, Netflix expects operating income of $2.52 billion and operating margin of 26.6%, compared to operating income of $1.82 billion and operating margin of 22.3% in the prior-year period. In Q1, operating income was $2.63 billion and operating margin was 28.1%.