What drove NFLX's EPS growth in Q4 2024?

Netflix's EPS growth in Q4 2024 can be attributed to several key factors:

1. Revenue Growth: Netflix's total revenue for the quarter was $10.25 billion. This increase in revenue, particularly from international markets, as discussed in detail in our previous analysis, contributes directly to the company's profitability and, consequently, its EPS.
2. International Performance: The company's international revenue performance was notable, with the Asia-Pacific region showing the strongest growth at a 19% year-over-year increase. This regional strength, along with positive performance in Europe, the Middle East, and Africa, underscores the significance of international markets in NFLX's revenue growth.
3. Content Strategy: Netflix's continued investment in original content and successful content offerings has been a key driver of its subscriber growth and revenue increase. The company reported a 14.4% rise in global streaming paid memberships, which directly impacts its EPS as each paid member contributes to the company's revenue.
4. Advertising and New Revenue Streams: Netflix's exploration of new revenue streams, such as advertising, is also contributing to its growth. The company's in-house first-party ad tech platform is expected to be launched in Canada and rolled out more broadly in 2025, which could potentially increase the company's revenue and profitability.

In summary, Netflix's EPS growth in Q4 2024 is driven by robust revenue growth, particularly from international markets, successful content strategy, and exploration of new revenue streams like advertising.