Eddy Recio’s Post

𝗡𝗲𝘁𝗳𝗹𝗶𝘅’𝘀 𝗟𝗮𝘁𝗲𝘀𝘁 𝗘𝗮𝗿𝗻𝗶𝗻𝗴𝘀: 𝗔 𝗠𝗮𝘀𝘁𝗲𝗿𝗰𝗹𝗮𝘀𝘀 𝗶𝗻 𝗦𝗰𝗮𝗹𝗶𝗻𝗴 𝗖𝗼𝗻𝘁𝗲𝗻𝘁 𝗣𝗿𝗼𝗳𝗶𝘁𝗮𝗯𝗶𝗹𝗶𝘁𝘆 Netflix stock is soaring over 11% after its latest earnings report. The company exceeded expectations with EPS of $5.40 (vs. $5.12) and revenue of $9.83 billion (vs. $9.77 billion). Looking ahead, Netflix projects 15% revenue growth and a six-point improvement in operating margins. By 2025, they expect revenue to hit $43-44 billion—$4-5 billion more than 2024. Here are 𝟯 𝗸𝗲𝘆 𝗹𝗲𝘀𝘀𝗼𝗻𝘀 we can all learn from Netflix’s approach: 1. 𝗙𝗶𝘅𝗲𝗱 𝗖𝗼𝗻𝘁𝗲𝗻𝘁, 𝗘𝘅𝗽𝗮𝗻𝗱𝗶𝗻𝗴 𝗔𝘂𝗱𝗶𝗲𝗻𝗰𝗲 Netflix spreads its fixed content costs over a growing audience, with 14% subscriber growth and increasing engagement. Whether it's hit series or sports offerings like NFL games, their content model scales profitably with each new viewer. 2. 𝗚𝗶𝘃𝗶𝗻𝗴 𝗔𝘄𝗮𝘆 𝗩𝗮𝗹𝘂𝗲 𝘁𝗼 𝗚𝗿𝗼𝘄 Netflix’s strategic moves, like offering free sports events, and a lower priced ad tier prove that giving value leads to growth. As Co-CEO Ted Sarandos stated in the Q3 earnings call, “Engagement drives retention and acquisition, which in turn places more value on a Netflix subscription”. This strategy keeps users engaged and drives new signups. 3. 𝗡𝗼 𝗡𝗲𝗲𝗱 𝘁𝗼 𝗕𝘂𝗻𝗱𝗹𝗲—𝗧𝗵𝗲𝘆 𝗔𝗿𝗲 𝘁𝗵𝗲 𝗕𝘂𝗻𝗱𝗹𝗲 Unlike other platforms, Netflix doesn’t rely on traditional bundles. With a wide range of content, including live sports, they are the ultimate bundle, growing through value-driven engagement without complex packaging. While other companies raise prices or experiment with aggressive strategies, Netflix shows that 𝗳𝗼𝗰𝘂𝘀𝗲𝗱 𝗲𝘅𝗲𝗰𝘂𝘁𝗶𝗼𝗻 𝗮𝗻𝗱 𝗼𝗽𝘁𝗶𝗺𝗶𝘇𝗶𝗻𝗴 𝘃𝗮𝗹𝘂𝗲 lead to sustainable growth. Full transcripts: https://lnkd.in/g3mEDWcH #Strategy #BusinessGrowth

Netflix, Inc. (NFLX) Q3 2024 Earnings Call Transcript

Netflix, Inc. (NFLX) Q3 2024 Earnings Call Transcript

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