How did Netflix manage its operating expenses in 2024?

Netflix managed its operating expenses in 2024 by strategically controlling its spending across various categories, ensuring that the increase in operating expenses did not outpace the growth in revenue.

1. Operating Expenses Increase: Netflix's operating expenses for 2024 were $28.583 billion, representing a 6.78% increase from the previous year. This increase was driven by higher spending on content acquisition and production, as well as ongoing investments in technology and marketing.
2. Revenue Growth: Despite the increase in operating expenses, Netflix saw significant revenue growth, with total revenues reaching $39 billion, up 16% from the previous year. This growth was driven by strong subscriber growth, particularly in the United States and Canada, and a 16% increase in revenue from the United States and Canada.
3. Profit Margin Improvement: Netflix's net income for 2024 was $8.71 billion, representing a 61% increase from the previous year. The company's profit margin also improved to 22%, up from 16% in the previous year, driven by higher revenue and effective cost management.
4. Efficient Cost Management: Netflix's efficient cost management was evident in its ability to increase operating margins while maintaining a strong revenue growth trajectory. The company's operating income for 2024 was $10.13 billion, representing a 15% year-over-year increase. This increase in operating income was a result of effective cost management and strategic investments in growth areas.

In conclusion, Netflix managed its operating expenses in 2024 by balancing the need for investment in growth areas with the need to control costs. The company's focus on efficient cost management, combined with strong revenue growth, allowed it to improve its profit margins and increase its net income.