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

•Our lower priced ad-supported plan launches in 12 countries in November – just six months after our initial announcement. Our existing plans remain ad free.

•Netflix has higher engagement than any other streamer – with room for growth:

◦In the UK, Netflix accounts for 8.2% of video viewing, 2.3x Amazon and 2.7x Disney+1;

◦In the US, Netflix accounts for 7.6% of TV time, 2.6x Amazon and 1.4x Disney + Hulu + Hulu Live3.

•Our competitors are investing heavily to drive subscribers and engagement, but building a large, successful streaming business is hard - we estimate they are all losing money, with combined 2022 operating losses well over $10 billion, vs. Netflix's $5 to $6 billion annual operating profit.

After a challenging first half, we believe we’re on a path to reaccelerate growth. The key is pleasing members. It’s why we’ve always focused on winning the competition for viewing every day. When our series and movies excite our members, they tell their friends, and then more people watch, join and stay with us.


(in millions except per share data)	Q3'21			Q4'21			Q1'22			Q2'22			Q3'22			Q4'22 Forecast
Revenue	$	7,483		$	7,709		$	7,868		$	7,970		$	7,926		$	7,776
Y/Y % Growth	16.3		%	16.0		%	9.8		%	8.6		%	5.9		%	0.9		%
Operating Income	$	1,755		$	632		$	1,972		$	1,578		$	1,533		$	330
Operating Margin	23.5		%	8.2		%	25.1		%	19.8		%	19.3		%	4.2		%
Net Income	$	1,449		$	607		$	1,597		$	1,441		$	1,398		$	163
Diluted EPS	$	3.19		$	1.33		$	3.53		$	3.20		$	3.10		$	0.36

Global Streaming Paid Memberships	213.56			221.84			221.64			220.67			223.09			227.59
Y/Y % Growth	9.4		%	8.9		%	6.7		%	5.5		%	4.5		%	2.6		%
Global Streaming Paid Net Additions	4.38			8.28			(0.20)			(0.97)			2.41			4.50

Net cash provided by (used in) operating activities	$	82		$	(403)		$	923		$	103		$	557
Free Cash Flow*	$	(106)		$	(569)		$	802		$	13		$	472
Shares (FD)	454.9			455.8			453.0			450.2			450.3

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.

___________________________________

1 Based on reporting from BARB2, as of September 2022

2 https://www.barb.co.uk/news/netflix-signs-up-to-barb/

3 Based on Nielsen’s Gauge4, as of August 2022

4 https://www.nielsen.com/insights/2022/streaming-grabs-35-of-tv-time-in-august-but-overall-usage-dips-as-summer-winds-down/


			1

The following information was filed by Netflix Inc (NFLX) on Tuesday, October 18, 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:

Other - Other Highlight
Net cash provided by (used in) financing activities increased $86 million for the three months ended September 30, 2022, primarily due to there being no repurchases of common stock in the three months ended September 30, 2022, as compared to repurchases of common stock for an aggregate amount of $100 million in the three months ended September 30, 2021.

Revenue - Geography Highlight
In the three and nine months ended September 30, 2022, the foreign exchange gains were primarily driven by the non-cash gains of $348 million and $815 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 - Geography Highlight
In the three and nine months ended September 30, 2021, the foreign exchange gains were primarily driven by the non-cash gains of $136 million and $327 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 net cash provided by operating activities was primarily driven by a $1,775 million or 8% 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
Free cash flow was $926...Read more
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Free cash flow was $1,555...Read more
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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: 0001065280-22-000368
Submitted to the SEC: Thu Oct 20 2022 4:04:17 PM EST
Accepted by the SEC: Thu Oct 20 2022
Period: Friday, September 30, 2022
Industry: Video Tape Rental