Netflix is set to report its Q4 earnings on Tuesday, January 21 after the closing bell.
All eyes will be on the streaming giant’s performance during the crucial holiday season. Netflix’s Q4 2024 earnings will provide key insights into the company’s ongoing evolution and how effective its recent initiatives have been.
Analysts will be looking to see how the company has dealt with these challenges, from subscriber growth to content strategy.
What’s in Focus?
Despite its recent fall, Netflix ‘s stock performance over the last year has been impressive. Rising nearly 69%, their performance has reflected increased global paid memberships and higher average revenue per membership.
This upward trend indicates that Netflix ‘s underlying business fundamentals remain strong, and these elements are likely to have fueled its Q4 success. ⁽¹⁾
Here’s what you need to know heading into Netflix’s earnings.
Subscriber Growth and Retention
Netflix’s subscriber growth will be a key focus in its Q4 2024 earnings report. Despite facing increasing competition, Netflix’s emphasis on original content, international expansion, and an ad-supported tier could boost user acquisition.
Revenue and Profit Margins
Netflix’s revenue growth will depend on expanding its subscriber base and increasing average revenue per user (ARPU). The launch of an ad-supported plan could affect ARPU, and the company’s revenue will be under scrutiny. Investors will also be watching for signs of improving profit margins, especially as Netflix has been cutting costs in content production and facing global economic pressures.
Content and Innovation
Netflix’s investment in original content will be closely examined, with analysts looking for strong viewership from recent releases. The success of its popular shows could boost subscriber retention and engagement. Investors will also want insights into Netflix’s long-term content strategy and its potential expansion into gaming or interactive content formats.
Outlook and Guidance
Netflix’s Q1 2025 guidance will be critical for shaping future expectations. Analysts will want to know how the company plans to maintain growth in a competitive market. Key factors to watch include pricing strategies, market expansion in emerging economies, and any announcements of new content investments or strategic partnerships.
Market Expectations
Wall Street estimates:
- Earnings Per Share (EPS): $4.20
- Revenue: $10.13 bn
With 5.1 million new net subscribers in Q3 2024, Netflix laid a solid basis for Q4 2024. Thanks to engaging programs like live NFL games and “Squid Game” Season 2, Q4 subscriber additions could double the Q3 number. ⁽²⁾
Netflix س is well-positioned for growth in 2025, with plans to increase its revenue by 11%-13% over its 2024 forecast. The company is focusing on expanding its subscriber base, raising prices while maintaining high retention, and growing its advertising business. Additionally, Netflix aims to improve its operating margin by 100 basis points, signaling a commitment to enhancing profitability. ⁽³⁾
Content investments will continue to be the focus of Netflix’s strategy, driving engagement and user retention. The company is diversifying its offerings by exploring new areas like gaming and live events, while also providing flexible pricing options, including an ad-supported tier. This allows Netflix to reach a broader audience while gradually increasing prices.
Netflix’s advertising business is a key growth area, with over 50% of new sign-ups opting for the ad-supported plan in Q3. Engagement levels for this plan are strong, with viewing hours comparable to the standard plan in 12 markets. However, challenges such as decelerating subscriber growth and rising content costs could potentially impact margins.
Technical Analysis

Source: TradingView
Netflix stock rebounded from its weekly low but is still below the pivot line ($854) which might put pressure on the stock. The 200 EMA (red) maintains its bullish support for the price.
Strong earnings could spark a rally, in which case traders will monitor a potential breach of $854 where resistance around $890 could become active.
Poor results could place the stock in bearish territory, where support formed around $801 could come into effect. After the earnings release, market sentiment can be inferred by watching how the stock responds around these levels.
Sources: ⁽¹⁾ ⁽²⁾ ⁽³⁾ Barchart