Netflix, Inc. stock research
FY2024 Q1
Netflix (NFLX) Gross Margin — Quarter Ended Mar 31, 2024
Revenue and gross profit both rose compared to the prior quarter and the same quarter last year. Cost of revenue declined sequentially, contributing to an improved gross margin relative to both comparison periods.
Gross margin takeaway
Quarter ended Mar 31, 2024 · FY2024 Q1
Revenue and gross profit both rose compared to the prior quarter and the same quarter last year. Cost of revenue declined sequentially, contributing to an improved gross margin relative to both comparison periods.
- Gross margin improved versus both the immediately preceding quarter and the same quarter one year earlier. The improvement was supported by cost of revenue declining sequentially while revenue increased.
- Compared to the prior quarter, revenue increased and cost of revenue decreased, resulting in a higher gross profit and gross margin. Relative to the same quarter a year ago, both revenue and gross profit were higher, and gross margin improved.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
46.9%
Gross profit
$4.4B
Revenue
$9.4B
Cost of revenue
$5.0B
Quarter-over-quarter change
+7.0 pts
Year-over-year change
+5.7 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Jun 30, 2023 | $8.2B | $3.5B | $4.7B | 42.9% |
| Sep 30, 2023 | $8.5B | $3.6B | $4.9B | 42.3% |
| Dec 31, 2023 | $8.8B | $3.5B | $5.3B | 39.9% |
| Mar 31, 2024 | $9.4B | $4.4B | $5.0B | 46.9% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Dec 31, 2023
+7.0 pts
Year-over-year change
Mar 31, 2023
+5.7 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
Gross margin improved versus both the immediately preceding quarter and the same quarter one year earlier. The improvement was supported by cost of revenue declining sequentially while revenue increased.
Compared to the prior quarter, revenue increased and cost of revenue decreased, resulting in a higher gross profit and gross margin. Relative to the same quarter a year ago, both revenue and gross profit were higher, and gross margin improved.
Monitor the trajectory of cost of revenue in the coming quarters, as a lower level supported margin expansion this quarter.