Netflix’s success story shows no signs of slowing down, with shares rising after a stronger-than-expected quarterly report. There is no need for a PhD in accounting to see why: mo’ users, mo’ money, and way more hype. Remember that “hiccup” in user growth after COVID? Yeah, that was just Netflix catching its breath after binging on a year of explosive sign-ups. In fact, Netflix’s growth trajectory is again aligned closely with our model projections dating back to 2013. But here’s what’s got investors sweating: Is Netflix overvalued? Even accounting for this great and lasting growth, the answer is yes. How long will it remain overvalued? Our model suggests Netflix won’t hit a growth plateau until 2027—so the hype probably isn’t cooling anytime soon. So, is it time to worry? Not really. Just sit back, relax, and Netflix and chill… while the hype is still hot.
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What started as a disruptor… Has evolved into a financial powerhouse! Netflix… I remember being an early subscriber to the DVD model in 2000 Even bought the stock before they had the 'transition breakdown' Then sold it…! More recently they shifted from rapid subscriber growth to robust free cash flow generation This shows a remarkable transition… And how strategic innovation can fuel long-term success With record-breaking earnings, subscriber milestones, and a soaring free cash flow Netflix continues to redefine what’s possible in the digital age Here's a look at how they’ve turned streaming into a profitable, scalable business model Just last night, Netflix reported Q3 2024 Earnings and A dramatic Shift to Free Cash Flow Positive! They continues its impressive growth trajectory with paid subscribers up 14% YoY, reaching 282.7M, adding 5.1M new subs this quarter alone Revenue grew by 15%, while EBIT skyrocketed 52%, pushing margins to a strong 30%. EPS surged by 45%, driven by this growth The real story here is Netflix’s shift to positive free cash flow, now at $7.1B, highlighting the company's ability to generate significant cash A marked improvement from the $45M deficit just 10 short years ago! Cash maybe king… But subscriber growth is what investors want IMO Pic Credit Quartr 📈 I can help you increase margins & profitability 💷 If you want to create Value in your business 🔔 Follow to see more of my content: Rob Nicholls ⏰ I release new content at 8am & 2pm M-F New newsletter out tomorrow October 20th Join the 3000+ Subscribers https://lnkd.in/eX4m8bgA
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Did you know that Netflix started as a DVD rental service? Recognizing the digital shift, Netflix pivoted to streaming—a move that reshaped its future. 𝗚𝗿𝗼𝘄𝘁𝗵 𝗦𝘁𝗿𝗮𝘁𝗲𝗴𝘆 𝗦𝗲𝗿𝗶𝗲𝘀 #𝟭𝟬: 𝗪𝗵𝗲𝗻 𝗦𝗵𝗼𝘂𝗹𝗱 𝗬𝗼𝘂 𝗥𝗲𝘃𝗶𝘀𝗶𝘁 𝗬𝗼𝘂𝗿 𝗚𝗿𝗼𝘄𝘁𝗵 𝗦𝘁𝗿𝗮𝘁𝗲𝗴𝘆? There’s no one-size-fits-all answer, but here’s a rule of thumb: Review your strategic plan every year. Reviewing more often can drain resources and may indicate your business is reacting to short-term changes instead of following a clear path. Even with annual reviews, major changes are usually rare. Most companies plan with a five-year horizon, making revisions only when necessary. However, drastic changes—like the Dot Com collapse, the Global Financial Crisis, or the rise of AI—might require adjustments. Good growth strategies account for these possibilities, but unexpected events may still force you to adapt quickly—whether due to a pandemic, a market shift, or something unforeseen. So, when should you revise your strategy? Consider these triggers: 💡𝗦𝗶𝗴𝗻𝗶𝗳𝗶𝗰𝗮𝗻𝘁 𝘀𝗵𝗶𝗳𝘁𝘀 𝗶𝗻 𝗴𝗼𝗮𝗹𝘀 𝗼𝗿 𝗼𝘂𝘁𝗰𝗼𝗺𝗲𝘀: If your strategy is overperforming or underperforming, it’s time to reassess. 💡𝗨𝗻𝗲𝘅𝗽𝗲𝗰𝘁𝗲𝗱 𝗲𝘅𝘁𝗲𝗿𝗻𝗮𝗹 𝗰𝗵𝗮𝗻𝗴𝗲𝘀:Think of how COVID-19 forced businesses to rapidly adjust. 💡𝗜𝗻𝘁𝗲𝗿𝗻𝗮𝗹 𝘀𝗵𝗶𝗳𝘁𝘀: If your execution is straying far from the plan, it’s time for an update. Remember: If after six months you’ve hit 8% growth, your strategy is likely on track. But if you’re only at 3%, it might be time to rethink your approach. Stay tuned for more insights! --------------------------------------------------------------------------- I publish regularly on growth strategy, management, and operations—three times a week if I stay on track.
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Embracing failure is key to growth and innovation. Creating a culture where failure is okay means encouraging your team to explore new ideas, take calculated risks, and learn from both successes and setbacks. When we allow space for experimentation and innovation, we create opportunities for real breakthroughs. Failure isn't the end—it's a stepping stone. Teams that feel supported when things don’t go as planned are more likely to bounce back stronger, think creatively, and work together to find solutions. When you foster an environment of continuous learning and open-mindedness, your team is happier, more engaged, and more empowered to drive your business forward. Remember, every setback is a lesson in disguise. Give your team the freedom to learn from them, and you’ll build a more resilient and innovative company. #Leadership #Innovation #GrowthMindset #TeamCulture #FailForward
Netflix's revolutionary model? Every Founder needs to watch this Grind Model 🤯 It wasn't an "aha" moment. It was a grind. Here's what former Netflix CEO Reed Hastings revealed: 1. The original idea was laughable • Mail-order DVD rentals • Due dates • Late fees Result? Nobody rented. If they did, they never came back. 2. The pivot process was messy • 18 months of relentless experimentation • Hundreds of ideas tested • Most failed miserably 3. The breakthrough? Speed over perfection • Initially: 1 test/month. Meticulously planned. Always failed. • Evolution: Multiple tests/day. Sloppy. Crashed sites. Wrong images. • Lesson: Bad ideas stay bad, no matter how perfectly executed. The golden rule they discovered Good ideas shine through the mess. • Customers fight through broken links • They reboot crashed sites • They call to participate The winning formula • Store DVDs at customers' homes • Monthly subscription • No due dates, no late fees Result? Product-market fit explosion. Customers couldn't get enough. Friends were told. Subscriptions stuck. The Netflix we know today? Born from hundreds of "bad" ideas, tested rapidly, refined relentlessly. Remember: It's not about having good ideas. It's about building a system to try lots of bad ones. Fast. Messy. Relentlessly. That's how innovation happens. That's how Netflix changed the game. What game are you trying to change? And how fast are you failing? — #VenchaVideosforFounders | Video #23 Find us at Vencha 💛 Read about my Book - The Go To Market Handbook for SaaS Leaders here - https://lnkd.in/gbvSV5yU
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5 big questions Netflix is facing from Wall Street ahead of earnings Analysts break down the challenges and opportunities facing Netflix as it seeks its next growth avenues. Read mode on following blog post!
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Great insight on Netflix here. Something that I always try to stress to startups in The Mill Enterprise Hub Drogheda is that you need to "nail it"🔨 (your business model) before you scale it!📈 Better to go slowly in the right direction instead of quickly in the wrong direction!🎯📈 #WhatIsntMeasuredIsntManaged #ProductMarketFit #DiaryOfaCEO
Netflix's revolutionary model? Every Founder needs to watch this Grind Model 🤯 It wasn't an "aha" moment. It was a grind. Here's what former Netflix CEO Reed Hastings revealed: 1. The original idea was laughable • Mail-order DVD rentals • Due dates • Late fees Result? Nobody rented. If they did, they never came back. 2. The pivot process was messy • 18 months of relentless experimentation • Hundreds of ideas tested • Most failed miserably 3. The breakthrough? Speed over perfection • Initially: 1 test/month. Meticulously planned. Always failed. • Evolution: Multiple tests/day. Sloppy. Crashed sites. Wrong images. • Lesson: Bad ideas stay bad, no matter how perfectly executed. The golden rule they discovered Good ideas shine through the mess. • Customers fight through broken links • They reboot crashed sites • They call to participate The winning formula • Store DVDs at customers' homes • Monthly subscription • No due dates, no late fees Result? Product-market fit explosion. Customers couldn't get enough. Friends were told. Subscriptions stuck. The Netflix we know today? Born from hundreds of "bad" ideas, tested rapidly, refined relentlessly. Remember: It's not about having good ideas. It's about building a system to try lots of bad ones. Fast. Messy. Relentlessly. That's how innovation happens. That's how Netflix changed the game. What game are you trying to change? And how fast are you failing? — #VenchaVideosforFounders | Video #23 Find us at Vencha 💛 Read about my Book - The Go To Market Handbook for SaaS Leaders here - https://lnkd.in/gbvSV5yU
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TLDR: Curiosity, humility, and fast failure trump perfection and precision; creating safe space to fail is a cornerstone of excellent execution.
Netflix's revolutionary model? Every Founder needs to watch this Grind Model 🤯 It wasn't an "aha" moment. It was a grind. Here's what former Netflix CEO Reed Hastings revealed: 1. The original idea was laughable • Mail-order DVD rentals • Due dates • Late fees Result? Nobody rented. If they did, they never came back. 2. The pivot process was messy • 18 months of relentless experimentation • Hundreds of ideas tested • Most failed miserably 3. The breakthrough? Speed over perfection • Initially: 1 test/month. Meticulously planned. Always failed. • Evolution: Multiple tests/day. Sloppy. Crashed sites. Wrong images. • Lesson: Bad ideas stay bad, no matter how perfectly executed. The golden rule they discovered Good ideas shine through the mess. • Customers fight through broken links • They reboot crashed sites • They call to participate The winning formula • Store DVDs at customers' homes • Monthly subscription • No due dates, no late fees Result? Product-market fit explosion. Customers couldn't get enough. Friends were told. Subscriptions stuck. The Netflix we know today? Born from hundreds of "bad" ideas, tested rapidly, refined relentlessly. Remember: It's not about having good ideas. It's about building a system to try lots of bad ones. Fast. Messy. Relentlessly. That's how innovation happens. That's how Netflix changed the game. What game are you trying to change? And how fast are you failing? — #VenchaVideosforFounders | Video #23 Find us at Vencha 💛 Read about my Book - The Go To Market Handbook for SaaS Leaders here - https://lnkd.in/gbvSV5yU
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Netflix's revolutionary model? Every Founder needs to watch this Grind Model 🤯 It wasn't an "aha" moment. It was a grind. Here's what former Netflix CEO Reed Hastings revealed: 1. The original idea was laughable • Mail-order DVD rentals • Due dates • Late fees Result? Nobody rented. If they did, they never came back. 2. The pivot process was messy • 18 months of relentless experimentation • Hundreds of ideas tested • Most failed miserably 3. The breakthrough? Speed over perfection • Initially: 1 test/month. Meticulously planned. Always failed. • Evolution: Multiple tests/day. Sloppy. Crashed sites. Wrong images. • Lesson: Bad ideas stay bad, no matter how perfectly executed. The golden rule they discovered Good ideas shine through the mess. • Customers fight through broken links • They reboot crashed sites • They call to participate The winning formula • Store DVDs at customers' homes • Monthly subscription • No due dates, no late fees Result? Product-market fit explosion. Customers couldn't get enough. Friends were told. Subscriptions stuck. The Netflix we know today? Born from hundreds of "bad" ideas, tested rapidly, refined relentlessly. Remember: It's not about having good ideas. It's about building a system to try lots of bad ones. Fast. Messy. Relentlessly. That's how innovation happens. That's how Netflix changed the game. What game are you trying to change? And how fast are you failing? — #VenchaVideosforFounders | Video #23 Find us at Vencha 💛 Read about my Book - The Go To Market Handbook for SaaS Leaders here - https://lnkd.in/gbvSV5yU
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Exciting Reveal: My First Financial Model Unveiling for Netflix I am thrilled to delve into Netflix's financial model, showcasing its global dominance in the entertainment industry. Revealing Netflix's Groundbreaking Business Model Netflix stands out as a beacon of innovation and adaptability in disruptive business models. 1. Subscription Power: Netflix revolutionized entertainment consumption with its subscription-based model, seamlessly integrating DVD rentals and streaming services. This strategy ensures consistent revenue streams while offering unparalleled convenience to users. 2. Global Impact: Operating across four key geographical regions, Netflix has transcended borders to captivate diverse audiences worldwide. This global presence not only fuels growth but also fosters cultural exchange through its platform. 3. Content Synergy: Netflix's appeal lies in its curated blend of original productions and licensed content. This winning formula keeps viewers engaged and drives subscription retention and satisfaction. Unveiling Netflix's Three-Statement Model Navigating Netflix's financial landscape requires a deep understanding of its operations. Let's explore a simplified breakdown of Netflix's financial health through a three-statement model. 1. Income Statement Forecast: By leveraging revenue and expense schedules, we anticipate Netflix's revenues and expenses for the forecasted period, leading to a comprehensive view of its financial performance. 2. Balance Sheet Projection: A focus on critical elements like property, plant, and equipment, content assets, and liabilities, including debt movements, provides insight into Netflix's financial standing. 3. Cash Flow Analysis: Forecasting cash flow unveils Netflix's ability to generate and manage cash, highlighting its growth potential and financial resilience. Synthesizing these insights empowers stakeholders to make informed decisions and navigate the evolving landscape of the entertainment industry. I eagerly await feedback and opportunities to further explore my passion for finance, particularly in entry-level positions within investment banking. Any advice or leads would be greatly appreciated. Panipat Institute of Engineering and Technology IB Institute Manoj Kumar Dr. Himanshu Jain ANKUR GAUR AMIT SINGLA #financialanalysis #netflix #financialmodeling #businessinsights #finance
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📊 Introducing: Netflix Stock Analysis Project 🚀 We're thrilled to unveil our latest endeavor: diving into Netflix stock trends. Our analysis covers the highs, lows, opens, and closes of Netflix shares on a daily, monthly, quarterly, and yearly basis. 🔍 Daily Insights: Get daily updates on Netflix stock movements to aid your daily decisions. 📅 Monthly Trends: Spot patterns and changes month by month to inform your investment strategy. 💼 Quarterly Performance: Evaluate Netflix's quarterly performance for strategic planning. 📈 Annual Overview: Track Netflix's overall yearly trajectory for long-term insights. We aim to provide easy-to-understand insights for investors navigating the stock market. #Netflix #StockMarket #Analysis #Investing #Finance #DataAnalysis #marketresearch #trading #investment
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How Netflix Generates $34 Billion in Revenue (With 10 Key Takeaways) In 1997, Reed Hastings got a $40 late fee for a DVD rental. That frustrating experience sparked an idea... What if there was a way to rent movies without late fees? Hastings saw an opportunity in the growing DVD market. He imagined a subscription service where you could rent unlimited DVDs by mail. With $2.5 million in startup funding, Netflix was born. The early days were rough. Blockbuster laughed them out of the room when Netflix proposed a partnership. But Netflix kept innovating: Pioneered the subscription model. Mastered logistics to deliver DVDs fast. Leveraged data to recommend personalized content. Pivoted to streaming before anyone else. Today, Netflix has 238 million subscribers and $34.93 billion in revenue. Here are 10 key takeaways from their success: 1. Solve a real customer pain point. 2. Embrace technology shifts early. 3. Use data to personalize the experience. 4. Focus on convenience above all else. 5. Build a strong original content library. 6. Keep innovating your business model. 7. Expand globally to reach new markets. 8. Optimize your tech infrastructure. 9. Create a strong company culture. 10. Never stop experimenting. The lesson? Frustration can birth billion-dollar ideas. What problem are you uniquely positioned to solve?
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