Netflix Q2 2024 Earnings Preview

Netflix Inc. (NASDAQ: NFLX) will report Q2 2024 results on Thursday, July 18, 2024. Here are the key numbers that we’re watching.

Figure 1: Netflix – consensus expectations for Q2, past earnings surprises, revisions, and CAGR

Source: Visible Alpha consensus (July 12, 2024). “Surprise” indicates the direction that specific line items beat or missed. “Revisions” show the trajectory of line items from a given date.

Netflix Q2 2024 Earnings Preview

According to Visible Alpha consensus, total revenues of $9.5 billion and operating income of $2.5 billion expected for Q2 2024 have slightly ticked up for sales but down for operating profit from last quarter, driven by consistent expectations for U.S. streaming. Since last quarter, ad-supported revenue has also inched up, but is down over 50% from January 2023. While there does not appear to be a shift in expectations from the April quarter, questions remain around the investments in the ad tier, increased competition, and its impact on paid sharing.

The stock has traded up around 7% to $652 since last quarter’s release, 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

Source: Visible Alpha consensus (July 12, 2024). Stock price data courtesy of FactSet. Netflix stock price is as of the market close on July 11, 2024.