Netflix, Inc. (NASDAQ:NFLX) Q3 2024 Earnings Conference Call October 17, 2024 4:45 PM ET

For the period ending September 30, 2024

October 17, 2024 4:45 p.m. ET

Prepared Remarks

Questions and Answers

Call Participants

Prepared Remarks:

Spencer Wang

Good afternoon, and welcome to the Netflix Q3 2024 Earnings Interview. I'm Spencer Wang, VP of Finance, IR and Corporate Development. Joining me today are Co-CEOs, Ted Sarandos and Greg Peters; and CFO, Spence Neumann. As a reminder, we will be making forward-looking statements, and actual results may vary.

We will now take questions submitted by the analyst community, and we'll begin with questions about our Q4 results and our outlook.

Questions and Answers:

A - Spencer Wang

The first question comes from Eric Sheridan of Goldman Sachs. Can you please frame your key investment priorities for 2025 and beyond? And how have they evolved in the past 12 to 18 months?

Ted Sarandos

Thanks a lot, Spencer. Let's start with looking into 2025. We're feeling really good about the business. We had a plan to reaccelerate growth and we delivered on that plan. You can see that in our 2024 financials. We expect to deliver 15% revenue growth and six percentage points of operating margin improvement and engagement, which we view as our best proxy for member happiness because when people watch more, they stick around longer. So that's retention. They talk more about Netflix, which drives acquisition. And they place a higher value on their Netflix subscription.

This year, we've maintained very healthy engagement, about two hours of viewing per member per day, and engagement on a per owner household is up to the first three quarters of 2024. So if you look at where we're sitting now, we finished Q3 with some big hits: Perfect Couple, Monsters: The Lyle and Erik Menendez Story, Nobody Wants This. And we're really excited about our Q4 slate because it's filled with great big titles from the U.S., from Brazil, from Korea, from the U.K., from Germany. And we also have got some really amazing live events coming up.

So when we look forward into 2025 and beyond, we want to build on that success. We plan to build on that success. And we've been making original programming now for more than a decade. And the core has become very strong. We have a team of people who are the best creative talent around the world. We have a culture and an operating model that allows us to create stories in more than 50 countries and thrill audiences of more than 600 million people all over the world.