Netflix Inc (NFLX) 10-K Annual Report January 2022

We achieved several milestones in 2021: we had the biggest TV show of the year (Squid Game), our two biggest film releases of all time (Red Notice and Don’t Look Up) and Netflix was the most Emmy-winning and most nominated TV network and the most Oscar-winning and nominated movie studio of 2021. Full year revenue of $30 billion grew 19% year over year while operating income of $6.2 billion rose 35% year over year. We finished Q4 with 222m paid memberships (with 8.3m paid net adds in Q4). Even in a world of uncertainty and increasing competition, we’re optimistic about our long-term growth prospects as streaming supplants linear entertainment around the world. We're continually improving Netflix so that we can please our members, grow our share of leisure time and lead in this transition. Our summary results and forecast are below.


(in millions except per share data)	Q4'20			Q1'21			Q2'21			Q3'21			Q4'21			Q1'22 Forecast
Revenue	$	6,644		$	7,163		$	7,342		$	7,483		$	7,709		$	7,903
Y/Y % Growth	21.5		%	24.2		%	19.4		%	16.3		%	16.0		%	10.3		%
Operating Income	$	954		$	1,960		$	1,848		$	1,755		$	632		$	1,765
Operating Margin	14.4		%	27.4		%	25.2		%	23.5		%	8.2		%	22.3		%
Net Income	$	542		$	1,707		$	1,353		$	1,449		$	607		$	1,304
Diluted EPS	$	1.19		$	3.75		$	2.97		$	3.19		$	1.33		$	2.86

Global Streaming Paid Memberships	203.66			207.64			209.18			213.56			221.84			224.34
Y/Y % Growth	21.9		%	13.6		%	8.4		%	9.4		%	8.9		%	8.0		%
Global Streaming Paid Net Additions	8.51			3.98			1.54			4.38			8.28			2.50

Net cash provided by (used in) operating activities	$	(138)		$	777		$	(64)		$	82		$	(403)
Free Cash Flow*	$	(284)		$	692		$	(175)		$	(106)		$	(569)
Shares (FD)	455.3			455.6			455.1			454.9			455.8
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 Thursday, January 20, 2022 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, 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.

Revenue - Product Highlight
The increase in average monthly revenue per paying membership resulted from our price changes and favorable fluctuations in foreign exchange rates.
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.
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, 2021, our estimated gross unrecognized tax benefits were $203 million of which $136 million, if recognized, would favorably impact our future earnings.
Financial - Earnings
The increase in operating margin...Read more
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Technology and Development Technology and...Read more
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In addition, third-party expenses, including...Read more
Other - Other
Stock repurchases may be effected...Read more
M & A - Other
Net cash used in investing...Read more
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However, these unknown obligations are...Read more
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For the year ended December...Read more
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Other - Other
Involuntary cancellations, as a result...Read more
Revenue - Product
Results of Operations The following...Read more
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We have built our own...Read more
Other - Other
We offer a variety of...Read more
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A membership is canceled and...Read more
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Free cash flow was $840...Read more
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Free cash flow was $5,275...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: 0001065280-22-000036
Submitted to the SEC: Thu Jan 27 2022 5:03:33 PM EST
Accepted by the SEC: Thu Jan 27 2022
Period: Friday, December 31, 2021
Industry: Video Tape Rental