Netflix Inc (NFLX) 10-K Annual Report January 2020

We had a strong finish to 2019, with Q4 revenue growing 31% year over year, bringing full year 2019 revenue to over $20 billion, while FY19 operating income rose 62% to $2.6 billion. During the quarter, we surpassed 100 million paid memberships outside of the US. Streaming entertainment is a global phenomenon and we’re working hard to build on our early progress.


(in millions except per share data and Streaming Content Obligations)	Q4'18			Q1'19			Q2'19			Q3'19			Q4'19			Q1'20 Forecast
Revenue	$	4,187		$	4,521		$	4,923		$	5,245		$	5,467		$	5,731
Y/Y % Growth	27.4		%	22.2		%	26.0		%	31.1		%	30.6		%	26.8		%
Operating Income	$	216		$	459		$	706		$	980		$	459		$	1,033
Operating Margin	5.2		%	10.2		%	14.3		%	18.7		%	8.4		%	18.0		%
Net Income	$	134		$	344		$	271		$	665		$	587		$	750
Diluted EPS	$	0.30		$	0.76		$	0.60		$	1.47		$	1.30		$	1.66

Global Streaming Paid Memberships	139.26			148.86			151.56			158.33			167.09			174.09
Y/Y % Growth	25.9		%	25.2		%	21.9		%	21.4		%	20.0		%	16.9		%
Global Streaming Paid Net Additions	8.84			9.60			2.70			6.77			8.76			7.00

Net cash (used in) operating activities	$	(1,235)		$	(380)		$	(544)		$	(502)		$	(1,462)
Free Cash Flow*	$	(1,315)		$	(460)		$	(594)		$	(551)		$	(1,670)
Adjusted EBITDA**	$	328		$	584		$	836		$	1,107		$	586
Shares (FD)	451.1			451.9			452.2			451.6			451.4
Streaming Content Obligations*** ($B)	19.3			18.9			18.5			19.1			19.5
Note: Figures are consolidated, including DVD.
* Free cash flow represents Net Cash (used in) operating activities adjusted for purchases of property and equipment and change in other assets
** Adjusted EBITDA represents net income before interest expense and other income/expense, income taxes, depreciation and amortization of property and equipment and further adjusted to exclude other non-cash charges or non-recurring items
*** Corresponds to our total known streaming content obligations as defined in our financial statements and related notes in our most recently filed SEC Form 10-K


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The following information was filed by Netflix Inc (NFLX) on Tuesday, January 21, 2020 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 of $7 million in the year ended December 31, 2019 was primarily driven by the $46 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 of our European and U.S. entities.

Revenue - Product Highlight
The increase in average monthly revenue per paying membership resulted from our price changes and plan mix, partially offset by unfavorable fluctuations in foreign exchange rates.
Revenue - Product Highlight
The increased use of cash was primarily driven by the increase in investments in streaming content that require more upfront payments, partially offset by a $4,362 million or 28% increase in revenues.
Financial - Expense Highlight
Technology and development expenses consist of payroll and related expenses for all technology personnel, as well as other costs incurred in making improvements to our service offerings, including testing, maintaining and modifying our user interface, our recommendation, merchandising and streaming delivery technology and infrastructure.
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 incurred in making our content available to members.
Financial - Earnings
At December 31, 2019, our...Read more
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In addition, third-party expenses, including...Read more
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In addition, third-party expenses, including...Read more
Financial - Earnings
The increase in operating margin...Read more
Financial - Expense
Other costs increased $789 million...Read more
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These contracts are primarily related...Read more
Other - Other
However, these unknown obligations are...Read more
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Revenue - Product
The increase in our consolidated...Read more
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Interest and other income (expense)...Read more
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Expenses associated with the acquisition,...Read more
Other - Other
Effective in the fourth quarter...Read more
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We have built our own...Read more
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We offer a variety of...Read more
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In connection with the Tax...Read more
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We do not have transactions...Read more
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Marketing expenses also include payroll...Read more
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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 4.17: Instruments Defining The Rights Of Security Holders, Including Indentures

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 32.1: Section 1350 Certification

Ticker: NFLX
CIK: 1065280
Form Type: 10-K Annual Report
Accession Number: 0001065280-20-000040
Submitted to the SEC: Wed Jan 29 2020 4:03:25 PM EST
Accepted by the SEC: Wed Jan 29 2020
Period: Tuesday, December 31, 2019
Industry: Video Tape Rental