Netflix forecasts revenue growth to $43-44 billion in 2025

Netflix forecasts revenue growth to $43-44 billion in 2025

Kyiv  •  UNN

October 20 2024, 10:27 PM  •  7922 views

Netflix expects revenue to increase by 11-13% in 2025 compared to 2024. The company plans to achieve an operating margin of 28% and free cash flow of $6-6.5 billion in 2024.

Netflix predicts revenue growth to $43-44 billion in 2025. This is reported by Variety, according to UNN.

Details

Netflix announced impressive results for the third quarter of 2024, which exceeded analysts' expectations. The company predicts that its revenues in 2025 will grow to $43-44 billion, up 11-13% from the expected $38.9 billion in 2024.

According to the company, the main growth drivers will be an increase in paid membership and average revenue per member. In addition, Netflix plans to achieve an operating margin of 28% in 2025, which is higher than the projected 27% in 2024.

In the third quarter, Netflix recorded free cash flow of $2.2 billion, an improvement from $1.9 billion last year. For the full year 2024, the company expects free cash flow in the range of $6.0-6.5 billion.

Netflix also announced plans not to regularly report on the number of subscribers, believing that other metrics, such as engagement and profitability, better reflect the overall health of the business.

During the third quarter, the company repurchased 2.6 million shares for $1.7 billion and raised $1.8 billion in its first investment-grade bond transaction. This demonstrates Netflix's confidence in its future development and willingness to invest in growth.

Netflix surpassed Wall Street analysts' expectations, reporting 5 million new subscribersOctober 18 2024, 09:02 AM • 13146 views