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 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