Netflix (NFLX) Q1 2024 Earnings Preview

Netflix NFLX Q1 2024 Earnings Preview

Netflix Inc. (NASDAQ: NFLX) will report Q1 2024 results on Thursday, April 18, 2024. Here are the key numbers that we’re watching.

Figure 1: Netflix – consensus expectations for Q1, past earnings surprises, revisions, and CAGR

Netflix Earnings Preview Q1 2024

Netflix Q1 2024 earnings preview

According to Visible Alpha consensus, total revenues of $9.3 billion and operating income of $2.4 billion expected for Q1 2024 have remained flattish from last quarter, driven by consistent expectations for U.S. streaming. Since last quarter, ad-supported revenue has also remained flattish at $135 million, but down over 50% from January 2023. While there does not appear to be a shift in expectations from the December quarter, questions remain around the investments in the ad tier, increased competition, and its impact on paid sharing.

The stock has traded up around 23% since last quarter’s December release and has remained higher (currently fluctuating above $600), close to its 52-week high of $639, driven by the resilience in the company’s net adds. Will the outlook for the rest of 2024 support the upward trajectory of Netflix’s stock price?

Figure 2: Netflix – consensus revenues, operating income, EPS, and stock performance

Netflix Consensus Estimates Q1 2024

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About Melissa Otto, CFA

Melissa is Head of TMT Research at Visible Alpha. She spent 20+ years as an equity analyst and portfolio manager. At TIAA/Nuveen, Melissa specialized in covering global technology and consumer stocks and the Pan-Asia region. She also managed one of Fidelity's equity research teams as a director of research. In addition to her equity investing career, Melissa worked directly with software engineering teams at Bloomberg, Microsoft, and MSCI building cloud-based solutions to centralize and aggregate critical investment data for investors. Melissa studied Japanese at Harvard University, received her MA in economics from Brandeis University and MS degree from the University of Pennsylvania, and is a CFA charterholder. She is certified in Azure Fundamentals and Agile Project Management.

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