$Netflix (NFLX.US)$The financial results for the second quarter of 2024 were released after the US stock market on July 18, EST. Despite the company's outstanding performance, the stock price fluctuated after the earnings report was released, mainly due to market concerns that the next quarter's performance guidance fell short of expectations and the gradual contraction of cash flow.
As the world's leading streaming company, the vast majority of Netflix's revenue comes from user subscriptions. Therefore, the number of subscribers and average monthly gross revenue per paying user (ARM, Average Revenue per Membership) have become core indicators for measuring Netflix's performance growth, and are also key dimensions for analyzing Netflix's performance in the second quarter of 2024.
1. The number of new subscribers exceeded expectations, and the number of advertising package users increased significantly
The company's performance growth this quarter was still mainly due to an increase in the number of subscribers.24Q2's revenue increased 16.8% year over year to 9.56 billion US dollars, with 8.05 million new subscribers, surpassing Bloomberg's agreed expectations of 4.702 million. The total number of subscribers was about 0.278 billion, YoY +16.5%. Apart from the number of subscribers, ARM's average monthly total revenue per paying user did not change much. Therefore, the company's performance this quarter was still driven by the growth in the number of users.
Figure: Net increase in subscribers from 19Q3-24Q2 (unit: thousand people)
Source: Company's official website
The increase in the number of subscribers is mainly...