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Netflix Q4: Paid Net Adds Impress, Return to Double-Digit Growth
Netflix’s Q4 showed a return to double-digit revenue growth, while paid net additions came in strong at 13 million compared to guidance for 9 million. This helped global paid memberships see a fourth consecutive quarter of accelerating growth. Although Q1’s revenue guide for $9.24 billion came up just short of estimates for $9.26-$9.28 billion, it points to YoY growth of 13.2%, a 70bp acceleration from Q4 and a third straight quarter with accelerating revenue growth. The guide represents growth of 16% on a F/X neutral basis for Q1. Notably, it’s unusual that Q1 would accelerate compared to Q4 given the seasonal, holiday period. This implies that Netflix will see a strong Q1 on a year-over-year basis for paid net additions, as well. Management stated the following: “Similar to prior years, we expect paid net additions to be down sequentially (reflecting typical seasonality as well as some likely pull forward from our strong Q4’23 performance) but to be up versus Q1’23 paid net adds of 1.8M.”
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