Netflix, Inc. (NASDAQ:NFLX) Q3 2024 Earnings Conference Call October 17, 2024 4:45 PM ET
Company Participants
Spencer Wang – VP of Finance, IR and Corporate Development
Ted Sarandos – Co-CEO
Greg Peters – Co-CEO
Spencer Neumann – CFO
Conference Call Participants
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.
Question-and-Answer Session
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
