After the market closed on Thursday in the US, Netflix released its third-quarter report, with performance exceeding expectations across the board and raising future performance guidance, causing the stock price to rise by over 5% after hours. In the third quarter, the company's revenue increased by 15% year-on-year to $9.825 billion, operating profit increased by 51.8% year-on-year to $2.909 billion, operating margin was 29.6%, diluted earnings per share (EPS) were $5.40, a 44.8% increase year-on-year.
Netflix dispelled market concerns with its impressive financial report, causing the stock price to rise by over 5% after hours. Next, we will analyze Netflix's financial report in detail to see how much more room there is for the company's stock price to grow in the future.
     
1. The number of users has exceeded expectations, and the release of high-quality content to ensure an accelerated growth in users.
In the third quarter of 2024, the company's revenue increased by 15% year-on-year to 9.825 billion US dollars, exceeding the company's guidance and Bloomberg's consensus expectations, mainly due to the growth in subscribers. In the third quarter, the company's net increase in paid subscription users was 5.07 million, exceeding Bloomberg's consensus expectation of 4.47 million, with a total of 0.283 billion paid memberships, YoY +14.39%.
Chart: Net increase in subscribers from Q1 2019 to Q3 2024 (unit: thousand people)
Source of information: company announcement.
Low-price advertising membership plans and paid sharing policies are important drivers of the company's growth in new user numbers.
In the third quarter, the low-priced ad package still remains attractive to new users, with a 35% increase in the advertising membership base compared to the previous month, showing good growth momentum. The company adjusted its membership pricing...