Netflix's latest 10-Q filing for the second quarter of 2024 reveals a robust financial performance and significant growth in paid memberships. The company reported total streaming revenues of $9.56 billion, marking a 17% increase from the same period in 2023. This growth was primarily driven by a 16% increase in average paying memberships, reaching 277.6 million at the end of the quarter.
The company's operating income also saw substantial growth, reaching $2.6 billion, a 42% increase from the previous year. This increase in operating income led to a 5% improvement in the operating margin, which reached 27% for the quarter.
Regionally, the United States and Canada (UCAN) segment contributed significantly to the company's streaming revenues, with a 19% increase totaling $4.3 billion. The region also saw a 11% increase in average paying memberships, reaching 84.1 million at the end of the quarter.
In Europe, the Middle East, and Africa (EMEA), streaming revenues reached $3 billion, representing a 17% increase. The region also experienced an 18% increase in average paying memberships, totaling 93.9 million at the end of the quarter.
Latin America (LATAM) and Asia-Pacific (APAC) also contributed to the company's growth, with streaming revenues increasing by 12% and 14% respectively.
Cost of revenues, primarily driven by content amortization, increased by $500.7 million, reaching $5.17 billion for the quarter. Marketing expenses, which include promotional activities and payments to marketing partners, also increased.
The company's average monthly revenue per paying membership saw a modest 1% increase, reaching $11.65.
As a result of these announcements, the company's shares have moved -1.5% on the market, and are now trading at a price of $633.34. For the full picture, make sure to review Netflix's 10-Q report.
