Netflix Inc (NFLX) 10-Q Quarterly Report April 2021

Revenue grew 24% year over year and was in line with our beginning of quarter forecast, while operating profit and margin reached all-time highs. We finished Q1’21 with 208m paid memberships, up 14% year over year, but below our guidance forecast of 210m paid memberships. We believe paid membership growth slowed due to the big Covid-19 pull forward in 2020 and a lighter content slate in the first half of this year, due to Covid-19 production delays. We continue to anticipate a strong second half with the return of new seasons of some of our biggest hits and an exciting film lineup. In the short-term, there is some uncertainty from Covid-19; in the long-term, the rise of streaming to replace linear TV around the world is the clear trend in entertainment.


(in millions except per share data)	Q1'20			Q2'20			Q3'20			Q4'20			Q1'21			Q2'21 Forecast
Revenue	$	5,768		$	6,148		$	6,436		$	6,644		$	7,163		$	7,302
Y/Y % Growth	27.6		%	24.9		%	22.7		%	21.5		%	24.2		%	18.8		%
Operating Income	$	958		$	1,358		$	1,315		$	954		$	1,960		$	1,865
Operating Margin	16.6		%	22.1		%	20.4		%	14.4		%	27.4		%	25.5		%
Net Income	$	709		$	720		$	790		$	542		$	1,707		$	1,441
Diluted EPS	$	1.57		$	1.59		$	1.74		$	1.19		$	3.75		$	3.16

Global Streaming Paid Memberships	182.86			192.95			195.15			203.66			207.64			208.64
Y/Y % Growth	22.8		%	27.3		%	23.3		%	21.9		%	13.6		%	8.1		%
Global Streaming Paid Net Additions	15.77			10.09			2.20			8.51			3.98			1.00

Net cash provided by (used in) operating activities	$	260		$	1,041		$	1,264		$	(138)		$	777
Free Cash Flow*	$	162		$	899		$	1,145		$	(284)		$	692
Shares (FD)	452.5			453.9			455.1			455.3			455.6
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.


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The following information was filed by Netflix Inc (NFLX) on Tuesday, April 20, 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-Q Quarterly 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-Q Quarterly Report:

Revenue - Geography Highlight
In the three months ended March 31, 2021, the foreign exchange gains were primarily driven by the $253 million non-cash gain from the remeasurement of our 5,170 million Senior Notes, coupled with the remeasurement of cash and content liability positions in currencies other than the functional currencies.

Revenue - Geography Highlight
In the three months ended March 31, 2020, the foreign exchange gains were primarily driven by the $93 million non-cash gain from the remeasurement of our 4,700 million Senior Notes, partially offset by the remeasurement of cash and content liability positions in currencies other than the functional currencies.
Revenue - Product Highlight
The increase in cash provided by operating activities was primarily driven by a $1,396 million or 24% increase in revenues, partially offset by an increase in investments in content that require more upfront cash payments.
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 - Product
The increase in average monthly...Read more
Financial - Cash Flow
Free cash flow was $547...Read more
Financial - Earnings
At March 31, 2021, our...Read more
Financial - Earnings
The increase in operating margin...Read more
Financial - Earnings
Our core strategy is to...Read more
Financial - Expense
23 Table of Contents The...Read more
Other - Other
Net cash used in investing...Read more
Financial - Expense
These contracts are primarily related...Read more
Other - Other
Stock repurchases may be effected...Read more
Other - Other
Net cash provided by operating...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 $1,015...Read more
Financial - Debt
Debt, net of debt issuance...Read more
Financial - Expense
Expenses associated with the acquisition,...Read more
Financial - Debt
Liquidity and Capital Resources Cash,...Read more
Revenue - Product
We have built our own...Read more
Revenue - Product
For the three months ended...Read more
Other - Other
We offer a variety of...Read more
Other - Other
Off-Balance Sheet Arrangements We do...Read more
Financial - Expense
Marketing expenses also include payroll...Read more
Revenue - Product
Results of Operations The following...Read more
Financial - Expense
The increase in interest expense...Read more
Legal - Other
26 Table of Contents Contractual...Read more
Financial - Expense
Other content costs increased $33...Read more
Financial - Income
The assumptions utilized in determining...Read more
Financial - Expense
The increase in technology and...Read more
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Financial Statements, Disclosures and Schedules

Inside this 10-Q Quarterly Report

Material Contracts, Statements, Certifications & more

Netflix Inc provided additional information to their SEC Filing as exhibits

Exhibit 10.1: Material Contract

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-Q Quarterly Report
Accession Number: 0001065280-21-000144
Submitted to the SEC: Thu Apr 22 2021 4:02:41 PM EST
Accepted by the SEC: Thu Apr 22 2021
Period: Wednesday, March 31, 2021
Industry: Video Tape Rental