Netflix Inc (NFLX) 10K Annual Reports & 10Q SEC Filings

•Q4’22 revenue, operating profit and membership growth exceeded our forecast - we continue to lead the industry in streaming engagement, revenue and profit.

•Our Q4 content slate outperformed even our high expectations:

◦Wednesday was our third most popular series ever, Harry & Meghan our second most popular documentary series, Troll our most popular non-English film, and Glass Onion: A Knives Out Mystery our fourth most popular film1.

•We successfully launched our new, lower priced ad-supported plan in November and are pleased with the early results, with much more still to do.

•We delivered on the high end of our operating profit margin target for full year 2022, and we expect to increase our operating margin in 2023 vs. 2022.

•For 2022, we finished with 231M paid memberships and generated $32B of revenue, $5.6B in operating income, $2.0B of net cash from operating activities and $1.6B of free cash flow (FCF). In 2023, we expect at least $3B of FCF, assuming no material swings in F/X.

•Ted Sarandos and Greg Peters are now co-CEOs of Netflix, with Reed Hastings as Executive Chairman – completing our succession process.

2022 was a tough year, with a bumpy start but a brighter finish. We believe we have a clear path to reaccelerate our revenue growth: continuing to improve all aspects of Netflix, launching paid sharing and building our ads offering. As always, our north stars remain pleasing our members and building even greater profitability over time.


(in millions except per share data)	Q4'21			Q1'22			Q2'22			Q3'22			Q4'22			Q1'23 Forecast
Revenue	$	7,709		$	7,868		$	7,970		$	7,926		$	7,852		$	8,172
Y/Y % Growth	16.0		%	9.8		%	8.6		%	5.9		%	1.9		%	3.9		%
Operating Income	$	632		$	1,972		$	1,578		$	1,533		$	550		$	1,625
Operating Margin	8.2		%	25.1		%	19.8		%	19.3		%	7.0		%	19.9		%
Net Income	$	607		$	1,597		$	1,441		$	1,398		$	55		$	1,275
Diluted EPS	$	1.33		$	3.53		$	3.20		$	3.10		$	0.12		$	2.82

Global Streaming Paid Memberships	221.84			221.64			220.67			223.09			230.75
Y/Y % Growth	8.9		%	6.7		%	5.5		%	4.5		%	4.0		%
Global Streaming Paid Net Additions	8.28			(0.20)			(0.97)			2.41			7.66

Net cash provided by (used in) operating activities	$	(403)		$	923		$	103		$	557		$	444
Free Cash Flow*	$	(569)		$	802		$	13		$	472		$	332
Shares (FD)	455.8			453.0			450.2			450.3			451.6
Note: Figures are consolidated, including DVD.
* Free cash flow represents Net Cash provided by (used in) operating activities less purchases of property and equipment and change in other assets.

___________________________________

1 As defined by cumulative view hours in the first 28 days


			1

The following information was filed by Netflix Inc (NFLX) on Thursday, January 19, 2023 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-K Annual Report statement of earnings and operation as management may choose to highlight particular information in the press release.

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Inside Netflix Inc's 10-K Annual Report:

Revenue - Geography Highlight
The foreign exchange gain in the year ended December 31, 2022 was primarily driven by the non-cash $353 million gain from the remeasurement of our Senior Notes denominated in euros, partially offset by the remeasurement of cash and content liability positions in currencies other than the functional currencies.

Revenue - Geography Highlight
The foreign exchange gain in the year ended December 31, 2021 was primarily driven by the non-cash $431 million gain from the remeasurement of our Senior Notes denominated in euros, partially offset by the remeasurement of cash and content liability positions in currencies other than the functional currencies.
Financial - Expense Highlight
Other operations costs include customer service and payment processing fees, including those we pay to our integrated payment partners, as well as other costs directly incurred in making our content available to members.
Financial - Earnings Highlight
At December 31, 2022, our estimated gross unrecognized tax benefits were $227 million of which $155 million, if recognized, would favorably impact our future earnings.
Financial - Expense Highlight
The increase in general and administrative expenses for the year ended December 31, 2022 as compared to the year ended December 31, 2021 was primarily due to a $224 million increase in personnel-related costs.
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Financial Statements, Disclosures and Schedules

Inside this 10-K Annual Report

Material Contracts, Statements, Certifications & more

Netflix Inc provided additional information to their SEC Filing as exhibits

Exhibit 4.18: Instruments Defining The Rights Of Security Holders, Including Indentures

Exhibit 10.11: Material Contract

Exhibit 21.1: Subsidaries Of The Registrant

Exhibit 23.1: Consents Of Experts And Counsel

Exhibit 31.1: Rule 13A-14(A)/15D-14(A) Certification

Exhibit 31.2: Rule 13A-14(A)/15D-14(A) Certification

Exhibit 31.3: Rule 13A-14(A)/15D-14(A) Certification

Exhibit 32.1: Section 1350 Certification

Ticker: NFLX
CIK: 1065280
Form Type: 10-K Annual Report
Accession Number: 0001065280-23-000035
Submitted to the SEC: Thu Jan 26 2023 4:03:50 PM EST
Accepted by the SEC: Thu Jan 26 2023
Period: Saturday, December 31, 2022
Industry: Video Tape Rental