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

Q2 was better-than-expected on membership growth, and foreign exchange was worse-than-expected (stronger US dollar), resulting in 9% revenue growth (13% constant currency). Our challenge and opportunity is to accelerate our revenue and membership growth by continuing to improve our product, content, and marketing as we’ve done for the last 25 years, and to better monetize our big audience. We’re in a position of strength given our $30 billion-plus in revenue, $6 billion in operating profit last year, growing free cash flow and a strong balance sheet. Our summary results and forecast are below.


(in millions except per share data)	Q2'21			Q3'21			Q4'21			Q1'22			Q2'22			Q3'22 Forecast
Revenue	$	7,342		$	7,483		$	7,709		$	7,868		$	7,970		$	7,838
Y/Y % Growth	19.4		%	16.3		%	16.0		%	9.8		%	8.6		%	4.7		%
Operating Income	$	1,848		$	1,755		$	632		$	1,972		$	1,578		$	1,255
Operating Margin	25.2		%	23.5		%	8.2		%	25.1		%	19.8		%	16.0		%
Net Income	$	1,353		$	1,449		$	607		$	1,597		$	1,441		$	961
Diluted EPS	$	2.97		$	3.19		$	1.33		$	3.53		$	3.20		$	2.14

Global Streaming Paid Memberships	209.18			213.56			221.84			221.64			220.67			221.67
Y/Y % Growth	8.4		%	9.4		%	8.9		%	6.7		%	5.5		%	3.8		%
Global Streaming Paid Net Additions	1.54			4.38			8.28			(0.20)			(0.97)			1.00

Net cash provided by (used in) operating activities	$	(64)		$	82		$	(403)		$	923		$	103
Free Cash Flow*	$	(175)		$	(106)		$	(569)		$	802		$	13
Shares (FD)	455.1			454.9			455.8			453.0			450.2

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, July 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.

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Inside Netflix Inc's 10-Q Quarterly Report:

Revenue - Geography Highlight
In the six months ended June 30, 2021, the foreign exchange gains were primarily driven by the non-cash gain of $190 million 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.

Other - Other Highlight
Net cash provided by (used in) financing activities increased $492 million for the three months ended June 30, 2022, primarily due to there being no repurchases of common stock in the three months ended June 30, 2022, as compared to repurchases of common stock for an aggregate amount of $500 million in the three months ended June 30, 2021.
Revenue - Geography Highlight
In the three and six months ended June 30, 2022, the foreign exchange gains were primarily driven by the non-cash gains of $305 million and $466 million, respectively, from the remeasurement of our 5,170 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 $628 million or 9% increase in revenues, partially offset by an increase in investments in content that require more upfront cash payments.
Revenue - Product Highlight
The increase in cash provided by operating activities was primarily driven by a $1,333 million or 9% increase in revenues, partially offset by an increase in investments in content that require more upfront cash payments.
Financial - Expense
Other operations costs include customer...Read more
Financial - Cash Flow
Free cash flow was $1,528...Read more
Financial - Cash Flow
Free cash flow was $1,428...Read more
Financial - Earnings
At June 30, 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
Other - Other
28 Table of Contents Three...Read more
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29 Table of Contents Six...Read more
M & A - Other
Net cash used in investing...Read more
Other - Other
Stock repurchases may be effected...Read more
Revenue - Product
19 Table of Contents Results...Read more
Other - Other
While our productions have resumed,...Read more
Other - Other
However, these unknown obligations are...Read more
Financial - Cash Flow
Free cash flow was $2,224...Read more
Financial - Cash Flow
Free cash flow was $2,543...Read more
Financial - Debt
Debt, net of debt issuance...Read more
Financial - Expense
Expenses directly associated with the...Read more
Financial - Income
Three months ended June 30,...Read more
Other - Other
The effective tax rate for...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
M & A - Other
27 Table of Contents Our...Read more
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Other - Other
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However, we believe that it...Read more
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As of June 30, 2022,...Read more
Financial - Expense
In addition, we had increased...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: 0001065280-22-000257
Submitted to the SEC: Thu Jul 21 2022 4:02:17 PM EST
Accepted by the SEC: Thu Jul 21 2022
Period: Thursday, June 30, 2022
Industry: Video Tape Rental