Understand The Income Statement

In 2024 Netflix had a revenue of $39B.

• It was increasing by ~20-30% every year from 2014-2021.

• Only increases of 6.5% during the end of COVID in 2022 and 2023 and a 15.7% increase in 2024.

Gross Profit Margin was >30% for the past 10 years and has been 38-46% in the past 5 years

Net income in 2024 was $8.71B (up 61% from 2023)

• Besides 2015 (when other steaming services debuted, Netflix expanded overseas, and focused more on original content) and 2022 (COVID competition increase and first loss of subscribers) net income has steadily increased ~48-100+% over the past 10 years.

Besides 2015 and 2022 EPS has been increasing year after year

• 2024 ($19.83)

• 2023 ($12.03)

• 2022 ($9.95)

• 2021 ($11.23)

• 2020 ($6.07)