10-KPeriod: FY2024

NETFLIX INC Annual Report, Year Ended Dec 31, 2024

Filed January 27, 2025For Securities:NFLX

Summary

Netflix, Inc. (NFLX) demonstrated robust financial performance for the fiscal year ending December 31, 2024, with total revenues reaching $39 billion, a significant 16% increase year-over-year. This growth was primarily driven by a 16% rise in streaming revenues, fueled by a 16% increase in paid memberships to over 301 million globally and a modest 1% increase in average monthly revenue per paying membership. The company also reported a substantial 50% surge in operating income to $10.4 billion, indicating improved profitability and operational efficiency as the operating margin expanded to 27% from 21% in the prior year. The company continues to invest heavily in content, with content obligations totaling $23.2 billion, reflecting its commitment to delivering compelling programming. Despite significant debt obligations of approximately $15.7 billion, Netflix maintains a strong liquidity position with over $9.5 billion in cash, cash equivalents, restricted cash, and short-term investments. The company also announced an increase in its share repurchase authorization by an additional $15 billion, signaling confidence in its financial health and commitment to returning value to shareholders.

Financial Highlights

53 data points
Beta

Revenue

$39.00B

46.1% Gross Margin

Net Income

$8.71B

22.3% Net Margin

EPS (Diluted)

$1.98

Total Assets

$53.63B

Cash & Equivalents

$7.81B

Free Cash Flow

$6.92B

Financial Statements
Beta
Revenue$39.00B
Cost of Revenue$21.04B
Gross Profit$17.96B
R&D Expenses$2.93B
Operating Income$10.42B
Net Income$8.71B
EPS (Basic)$2.03
EPS (Diluted)$1.98
Shares Outstanding (Basic)4.30B
Shares Outstanding (Diluted)4.39B

Key Highlights

  • 1Total revenues grew 16% year-over-year to $39 billion, driven by strong streaming revenue growth.
  • 2Paid memberships increased by 16% to over 301 million globally, indicating continued subscriber demand.
  • 3Operating income saw a significant 50% increase, reaching $10.4 billion, with operating margins expanding to 27%.
  • 4The company maintained a healthy liquidity position with over $9.5 billion in cash, cash equivalents, restricted cash, and short-term investments.
  • 5Netflix announced an additional $15 billion increase to its share repurchase authorization, underscoring its commitment to shareholder returns.
  • 6Content obligations remain substantial at $23.2 billion, reflecting ongoing investment in original and licensed programming.

Frequently Asked Questions

Netflix experienced strong growth in 2024. Total revenues increased by 16% to $39 billion, and operating income surged by 50% to $10.4 billion, resulting in an improved operating margin of 27% from 21% in the previous year.

As of December 31, 2024, Netflix had over 301 million paid memberships globally, marking a 16% increase from the prior year. The company also saw positive net paid membership additions.

Netflix continues to invest significantly in content, with content obligations totaling $23.2 billion. While the company carries substantial debt of approximately $15.7 billion, it maintains a strong cash position and generates positive cash flow from operations, indicating it can manage these commitments.

Netflix demonstrated a commitment to shareholder returns by increasing its share repurchase authorization by an additional $15 billion. This move signals management's confidence in the company's financial outlook and its strategy to return capital to investors.