On January 22, 2024, Netflix released its fourth-quarter and annual financial report, showcasing strong growth momentum and positive market reactions. The report indicated that Q4 revenue reached $10.247 billion, a 16% increase from $8.833 billion in the same quarter last year. This performance surpassed market expectations, demonstrating Netflix's ability to maintain robust growth in a highly competitive streaming industry. Furthermore, the net profit for Q4 was $1.869 billion, a remarkable 99% increase compared to $938 million from the previous year, reflecting a significant enhancement in the company's profitability.

(Source: Google Finance)

In terms of user growth, Netflix also performed exceptionally well. The global addition of 18.91 million paid subscribers in Q4 was notably higher than 13.12 million in the same period last year, indicating that Netflix's appeal in the global market remains strong. By the end of Q4, Netflix's total number of paid subscribers reached 301.63 million, compared to 260.28 million a year earlier, showcasing continuous expansion in its user base.

Regionally, Netflix's performance was impressive as well. In the United States and Canada, the total number of paid subscribers reached 89.63 million, a significant increase from 80.13 million a year ago, with a net addition of 4.82 million users. In Europe, the Middle East, and Africa, the total number of paid subscribers stood at 101.13 million; although the net addition slightly declined to 5 million, it still indicated stable user growth. Latin America and the Asia-Pacific region also showed strong performance, adding 4.15 million and 4.94 million users, respectively, with total subscriber counts of 53.33 million and 57.54 million, reflecting widespread recognition of Netflix across various markets.

Regarding financial health, Netflix's operating profit in Q4 reached $2.273 billion, marking a 51.94% year-over-year increase, and the operating margin improved to 22.7%, up 5.8 percentage points from 16.9% in the previous year. This growth is attributed not only to the increase in user numbers but also to the company's success in cost control and operational efficiency. Additionally, the net cash flow from operations for Q4 was $1.537 billion, while free cash flow amounted to $1.378 billion, indicating strong cash flow management.

Looking ahead to the 2024 fiscal year, Netflix's total revenue reached $39.001 billion, a 15.65% year-over-year increase. The net profit was $8.712 billion, showing an upward trend compared to previous years, with diluted earnings per share of $19.83, reflecting a sustained enhancement in profitability. The operating profit was $10.418 billion, with an operating margin of 26.7%, significantly improved from 20.6% in the prior fiscal year.

In response to an increasingly competitive market, Netflix has implemented a series of strategic measures to maintain its leading position. The company has actively launched new content and strengthened partnerships with production companies to ensure a diverse and appealing content library. At the same time, Netflix is continuously exploring advertising models to broaden its revenue streams. Looking to the future, Netflix expects to achieve a revenue of $10.416 billion in the first quarter of the 2025 fiscal year, representing an 11.2% year-over-year increase. The company anticipates an operating profit of $2.940 billion with an operating margin of 28.2%. Net profit is projected to be $2.440 billion, with earnings per share reaching $5.58, all of which exceed analysts' expectations, indicating strong market confidence in Netflix's future development.

Overall, Netflix has demonstrated outstanding performance over the past year, showing resilience and potential in user growth, financial health, and market competitiveness. As the streaming market continues to evolve, Netflix's innovative and flexible strategies position it well to lead industry development and maintain its dominant position in the global streaming market. Analysts are generally optimistic about Netflix's future performance, believing it will continue to hold an advantage in the competitive landscape and remain a focal point for investors.

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（Source: uSMART HK）