Netflix ( NFLX , Financials) is scheduled to announce its fourth-quarter 2024 financial results on Tuesday, Jan. 21.

The business projects income for the quarter to rise 15% year over year to $10.13 billion, or 17% on a foreign exchange-neutral basis. Projected at 22%, operating margin shows a five-percentage-point increase over the same period in 2023. Seasonal considerations and a strong content slateincluding the return of Squid Game for its second season, NFL games on Christmas Day, and new films like Carry-on and The Six Triple Eightalso point the business toward an increase in paid net adds.

Driven by a 15% increase in average paid memberships, Netflix's expectation follows a solid third-quarter performance with revenue up 15% year-over-year to $9.83 billion. Rising by 52% to $2.91 billion, operational income climbed to provide a 30% operating margin. While free cash flow for the quarter jumped to $2.19 billion from $1.89 billion in the previous-year period, diluted profits per share surged 45% to $5.40.

With the Asia-Pacific area leading at 19% revenue increase year-over-year, regional development clearly had a major impact on the outcomes. Driven by a 10% growth in average paid memberships, the United States and Canada stated a 16% revenue gain. Revenue also climbed 16%, across Europe, the Middle East, and Africa, mirroring steady membership increase. Though membership dropped marginally owing to price changes, Latin America witnessed a 9% income rise.

The corporation keeps growing its advertising division; ad-sponsored subscriptions rise 35% quarter-on-quarter. Although present monetization difficulties exist, the firm hopes to expand its advertising activities even more in the next years as it lays a foundation for long-term development.

With a revised operating margin projection of 27%, up from 26% before, Netflix reiterated in 2024 its direction of 14%-15% revenue growth. Year-long free cash flow is projected to range between $6.0 billion to $6.5 billion. With ongoing expenditures in core content, advertising, and gaming, Netflix projects income growth of 11%13% and an operating margin of 28% forward to 2025.

This article first appeared on GuruFocus .