Netflix — Jan 21, 2025 release

most currencies has negatively impacted our 2025 revenue forecast by ~$1B, net of hedging (this F/X impact is included in our updated guidance). Our 2025 revenue forecast equates to 12%-14% year-over-year growth, or 14%-17% F/X neutral growth. It reflects an expectation of continued healthy member growth, modest F/X neutral ARM growth and a rough doubling of our ad revenue (consistent with our prior ad revenue guidance). In Q1’25, we expect revenue growth of 11% (14% F/X neutral), which is modestly below our full year guidance due to the timing of price changes and the seasonality of our ads business. With the higher revenue forecast, we’re now targeting a 29% operating margin for 2025, based on F/X rates as of January 1, 2025, up from our previous forecast of 28% and two points higher than the 27% operating margin in 2024 4 . As we announced last year 5 , beginning with our Q1’25 earnings in April, we’ll no longer report paid memberships and ARM on a regular quarterly basis; we will continue to announce paid memberships as we cross key milestones. Starting with our Q2’25 results, we’ll publish our bi-annual engagement report 6 - which accounts for 99% of all viewing on Netflix - in tandem with our Q2 and Q4 earnings results. 2025 Perspective We enter 2025 with strong momentum, coming off a year with record net additions (41M) and having re-accelerated growth (16% increase in revenue). Moreover, we’re in a leadership position in terms of __________________________________ 1 Excluding the year over year effect of foreign exchange ra