SURPRISE! Netflix exceeds expectations 1Q24 but shares fall, what did you dislike? By

SURPRISE! Netflix exceeds expectations 1Q24 but shares fall, what did you dislike? By
SURPRISE! Netflix exceeds expectations 1Q24 but shares fall, what did you dislike? By – Even though Netflix Inc (NASDAQ:) reported numbers that surpassed analyst consensus expectations for the first quarter of 2024, its shares fell more than 5% in after-hours trading, posting a guidance for the second quarter below expectations.

During the first three months of the year, Netflix reported revenues of $9.37 billion, which represents a growth of 14.8% compared to the same period last year. This figure also beat the expectations of analysts, who expected a turnover of $9.27 billion.

Netflix’s profits also showed a notable growth of 78.7%, registering some $2,633 million from $1,305 million in the first quarter but in 2023. This translated into an earnings per diluted share (EPS) of $5.28, exceeding the $4.51 expected by the consensus.

Netflix added 9.33 million users, notably beating analyst expectations of around 4.8 million net additions. This implied an annualized growth of 16% in its global paid subscriber base to reach 269.60 million.

However, the initial reaction from investors was negative, as the guidance that Netflix presented for the second quarter fell short of expectations, with expected sales of $9.49 billion, compared to the consensus forecasts of analysts. of 9,530 million dollars.


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“Our two priorities in advertising are expanding our member base and developing our capabilities for advertisers. We made progress on both fronts in the first quarter. Our advertising membership grew 65% quarter over quarter (after increasing almost 70% sequentially in the third and fourth quarters of 2023) with more than 40% of all registrations in our advertising markets coming from our advertising plan,” the firm mentioned in the letter to investors.

In terms of profitability and efficiency, Netflix’s operating margin grew seven percentage points, reaching 28%.

In its full-year fiscal 2024 forecast, Netflix expects revenue growth of 13% to 15%, a figure that exceeds initial expectations. Additionally, the company raised its fiscal 2024 operating margin forecast to 25%, up from 24% previously forecast.

Although Netflix has generated positive cash flow and has used some of this cash to pay down debt, the company still has $14 billion in debt.

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