Netflix Inc (NFLX) 10-K Annual Report January 2021

2020 was an incredibly difficult year with extraordinary loss for so many families, new restrictions that none of us have ever had to live with before and great uncertainty. We’re enormously grateful that in these uniquely challenging times we’ve been able to provide our members around the world with a source of escape, connection and joy while continuing to build our business. With 8.5m paid net additions in Q4, we crossed the 200m paid memberships mark. For the full year, we added a record 37m paid memberships, achieved $25 billion in annual revenue (+24% year over year) and grew operating profit 76% to $4.6 billion. Our summary results and forecast are below.


(in millions except per share data)	Q4'19			Q1'20			Q2'20			Q3'20			Q4'20			Q1'21 Forecast
Revenue	$	5,467		$	5,768		$	6,148		$	6,436		$	6,644		$	7,129
Y/Y % Growth	30.6		%	27.6		%	24.9		%	22.7		%	21.5		%	23.6		%
Operating Income	$	459		$	958		$	1,358		$	1,315		$	954		$	1,780
Operating Margin	8.4		%	16.6		%	22.1		%	20.4		%	14.4		%	25.0		%
Net Income	$	587		$	709		$	720		$	790		$	542		$	1,355
Diluted EPS	$	1.30		$	1.57		$	1.59		$	1.74		$	1.19		$	2.97

Global Streaming Paid Memberships	167.09			182.86			192.95			195.15			203.66			209.66
Y/Y % Growth	20.0		%	22.8		%	27.3		%	23.3		%	21.9		%	14.7		%
Global Streaming Paid Net Additions	8.76			15.77			10.09			2.20			8.51			6.00

Net cash provided by (used in) operating activities	$	(1,462)		$	260		$	1,041		$	1,264		$	(138)
Free Cash Flow*	$	(1,670)		$	162		$	899		$	1,145		$	(284)
Shares (FD)	451.4			452.5			453.9			455.1			455.3
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.


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The following information was filed by Netflix Inc (NFLX) on Tuesday, January 19, 2021 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 - 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.

Financial - Expense Highlight
Technology and Development 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 recommendations, 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.
Revenue - Geography Highlight
The foreign exchange loss in the year ended December 31, 2020 was primarily driven by the non-cash $533 million loss from the remeasurement of our Senior Notes denominated in euros, coupled with the remeasurement of cash and content liability positions in currencies other than the functional currencies.
Financial - Earnings Highlight
At December 31, 2020, our estimated gross unrecognized tax benefits were $140 million of which $86 million, if recognized, would favorably impact our future earnings.
Other - Other
As our cash provided by...Read more
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These contracts are primarily related...Read more
Other - Other
However, these unknown obligations are...Read more
Revenue - Product
The increase in our consolidated...Read more
Financial - Cash Flow
Free cash flow was $840...Read more
Financial - Expense
Expenses associated with the acquisition,...Read more
Financial - Cash Flow
Free cash flow was $5,141...Read more
Other - Other
Involuntary cancellations, as a result...Read more
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The increase in interest expense...Read more
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Expenses associated with the acquisition,...Read more
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Interest and other income (expense)...Read more
Other - Other
Net cash used in investing...Read more
Revenue - Product
We have built our own...Read more
Other - Other
In an effort to contain...Read more
Other - Other
We offer a variety of...Read more
Other - Other
A membership is canceled and...Read more
Other - Other
Off-Balance Sheet Arrangements We do...Read more
Financial - Expense
Marketing expenses also include payroll...Read more
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Voluntary cancellations generally become effective...Read more
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Liquidity and Capital Resources Cash,...Read more
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Contractual Obligations For the purpose...Read more
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The increase in general and...Read more
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The increase in technology and...Read more
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The assumptions utilized in determining...Read more
Financial - Debt
Debt, net of debt issuance...Read more
Other - Other
The increase in our effective...Read more
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However, we believe that it...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 10.11: Material Contract

Exhibit 10.12: 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: 0001065280-21-000040
Submitted to the SEC: Thu Jan 28 2021 4:21:59 PM EST
Accepted by the SEC: Thu Jan 28 2021
Period: Thursday, December 31, 2020
Industry: Video Tape Rental