Netflix Inc (NFLX) 10-Q Quarterly Report April 2022

Our revenue growth has slowed considerably as our results and forecast below show. Streaming is winning over linear, as we predicted, and Netflix titles are very popular globally. However, our relatively high household penetration - when including the large number of households sharing accounts - combined with competition, is creating revenue growth headwinds. The big COVID boost to streaming obscured the picture until recently. While we work to reaccelerate our revenue growth - through improvements to our service and more effective monetization of multi-household sharing - we’ll be holding our operating margin at around 20%. Key to our success has been our ability to create amazing entertainment from all around the world, present it in highly personalized ways, and win more viewing than our competitors. These are Netflix's core strengths and competitive advantages. Together with our strong profitability, we believe we have the foundation from which we can both significantly improve, and better monetize, our service longer term.


(in millions except per share data)	Q1'21			Q2'21			Q3'21			Q4'21			Q1'22			Q2'22 Forecast
Revenue	$	7,163		$	7,342		$	7,483		$	7,709		$	7,868		$	8,053
Y/Y % Growth	24.2		%	19.4		%	16.3		%	16.0		%	9.8		%	9.7		%
Operating Income	$	1,960		$	1,848		$	1,755		$	632		$	1,972		$	1,730
Operating Margin	27.4		%	25.2		%	23.5		%	8.2		%	25.1		%	21.5		%
Net Income	$	1,707		$	1,353		$	1,449		$	607		$	1,597		$	1,354
Diluted EPS	$	3.75		$	2.97		$	3.19		$	1.33		$	3.53		$	3.00

Global Streaming Paid Memberships	207.64			209.18			213.56			221.84			221.64			219.64
Y/Y % Growth	13.6		%	8.4		%	9.4		%	8.9		%	6.7		%	5.0		%
Global Streaming Paid Net Additions	3.98			1.54			4.38			8.28			(0.20)			(2.00)

Net cash provided by (used in) operating activities	$	777		$	(64)		$	82		$	(403)		$	923
Free Cash Flow*	$	692		$	(175)		$	(106)		$	(569)		$	802
Shares (FD)	455.6			455.1			454.9			455.8			453.0
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

The following information was filed by Netflix Inc (NFLX) on Tuesday, April 19, 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-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.

Please wait while we load the requested 10-Q report or click the link below:

https://last10k.com/sec-filings/report/1065280/000106528022000145/nflx-20220331.htm

View differences made from one quarter to another to evaluate Netflix Inc's financial trajectory

Compare SEC Filings Year-over-Year (YoY) and Quarter-over-Quarter (QoQ) — *Sample 10-K Year-over-Year (YoY) Comparison*

Compare this 10-Q Quarterly Report to its predecessor by reading our highlights to see what text and tables were ~~removed~~ , added and changed by Netflix Inc.

Continue

Assess how Netflix Inc's management team is paid from their Annual Proxy

Netflix Inc's Definitive Proxy Statement (Form DEF 14A) filed after their 2022 10-K Annual Report includes:

Voting Procedures
Board Members
Executive Team
Salaries, Bonuses, Perks
Peers / Competitors

Continue

Rating
Learn More

Filter Sentiment:

All

Positive

Negative

Filter Category:

All

Revenue

Financial

M & A

Other

Filter Subcategory:

All

Geography

Product

Expense

Cash Flow

Earnings

Debt

Income

Other

Inside Netflix Inc's 10-Q Quarterly Report:

Revenue - Geography Highlight
In the three months ended March 31, 2022, the foreign exchange gains were primarily driven by the $162 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, 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 - Product Highlight
The increase in cash provided by operating activities was primarily driven by a $704 million or 10% increase in revenues, partially offset by an increase in investments in content that require more upfront cash payments.
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 - Cash Flow Highlight
Free cash flow was $796 million lower than net income for the three months ended March 31, 2022 primarily due to $765 million of cash payments for content assets over amortization expense and $162 million of non-cash remeasurement gain on our euro-denominated debt, partially offset by $119 million of non-cash stock-based compensation expense and $12 million in other favorable working capital differences.
Financial - Earnings
At March 31, 2022, our...Read more
Financial - Expense
Technology and Development Technology and...Read more
Financial - Earnings
Our core strategy is to...Read more
Revenue - Product
The increase in average monthly...Read more
Financial - Expense
The decrease in interest expense...Read more
Financial - Expense
The increase in marketing expenses...Read more
Other - Other
Stock repurchases may be effected...Read more
Other - Other
Net cash provided by operating...Read more
Revenue - Product
Results of Operations The following...Read more
Other - Other
However, these unknown obligations are...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 directly associated with the...Read more
M & A - Other
25 Table of Contents Net...Read more
Financial - Debt
Net cash used in financing...Read more
Revenue - Product
We have built our own...Read more
Other - Other
We offer a variety of...Read more
Financial - Expense
Marketing expenses also include payroll...Read more
Financial - Expense
22 Table of Contents Interest...Read more
Financial - Expense
The increase in general and...Read more
Financial - Income
The assumptions utilized in determining...Read more
Financial - Expense
The increase in technology and...Read more
Financial - Income
Interest and other income decreased...Read more
Other - Other
However, we believe that it...Read more
Financial - Debt
23 Table of Contents Liquidity...Read more
Other - Other
As of March 31, 2022,...Read more

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 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: 0001065280-22-000145
Submitted to the SEC: Thu Apr 21 2022 4:03:01 PM EST
Accepted by the SEC: Thu Apr 21 2022
Period: Thursday, March 31, 2022
Industry: Video Tape Rental