04/20/2021 | Press release | Distributed by Public on 04/20/2021 14:01
Netflix, Inc. | |||||||||||
Consolidated Statements of Operations | |||||||||||
(unaudited) | |||||||||||
(in thousands, except per share data) | |||||||||||
Three Months Ended | Twelve Months Ended | Three Months Ended | Twelve Months Ended | Three Months Ended | |||||||
March 31, | June 30, | September 30, | December 31, | December 31, | March 31, | June 30, | September 30, | December 31, | December 31, | March 31, | |
2019 | 2019 | 2019 | 2019 | 2019 | 2020 | 2020 | 2020 | 2020 | 2020 | 2021 | |
Revenues | $ 4,520,992 | $ 4,923,116 | $ 5,244,905 | $ 5,467,434 | $ 20,156,447 | $ 5,767,691 | $ 6,148,286 | $ 6,435,637 | $ 6,644,442 | $ 24,996,056 | $ 7,163,282 |
Cost of revenues | 2,870,614 | 3,005,657 | 3,097,919 | 3,466,023 | 12,440,213 | 3,599,701 | 3,643,707 | 3,867,751 | 4,165,160 | 15,276,319 | 3,868,511 |
Marketing | 616,578 | 603,150 | 553,797 | 878,937 | 2,652,462 | 503,830 | 434,370 | 527,597 | 762,565 | 2,228,362 | 512,512 |
Technology and development | 372,764 | 383,233 | 379,776 | 409,376 | 1,545,149 | 453,817 | 435,045 | 453,802 | 486,936 | 1,829,600 | 525,207 |
General and administrative | 201,952 | 224,657 | 233,174 | 254,586 | 914,369 | 252,087 | 277,236 | 271,624 | 275,539 | 1,076,486 | 297,196 |
Operating income | 459,084 | 706,419 | 980,239 | 458,512 | 2,604,254 | 958,256 | 1,357,928 | 1,314,863 | 954,242 | 4,585,289 | 1,959,856 |
Other income (expense): | |||||||||||
Interest expense | (135,529) | (152,033) | (160,660) | (177,801) | (626,023) | (184,083) | (189,151) | (197,079) | (197,186) | (767,499) | (194,440) |
Interest and other income (expense) | 76,104 | (53,470) | 192,744 | (131,378) | 84,000 | 21,697 | (133,175) | (256,324) | (250,639) | (618,441) | 269,086 |
Income before income taxes | 399,659 | 500,916 | 1,012,323 | 149,333 | 2,062,231 | 795,870 | 1,035,602 | 861,460 | 506,417 | 3,199,349 | 2,034,502 |
Benefit from (provision for) income taxes | (55,607) | (230,266) | (347,079) | 437,637 | (195,315) | (86,803) | (315,406) | (71,484) | 35,739 | (437,954) | (327,787) |
Net income | $ 344,052 | $ 270,650 | $ 665,244 | $ 586,970 | $ 1,866,916 | $ 709,067 | $ 720,196 | $ 789,976 | $ 542,156 | $ 2,761,395 | $ 1,706,715 |
Earnings per share: | |||||||||||
Basic | $ 0.79 | $ 0.62 | $ 1.52 | $ 1.34 | $ 4.26 | $ 1.61 | $ 1.63 | $ 1.79 | $ 1.23 | $ 6.26 | $ 3.85 |
Diluted | $ 0.76 | $ 0.60 | $ 1.47 | $ 1.30 | $ 4.13 | $ 1.57 | $ 1.59 | $ 1.74 | $ 1.19 | $ 6.08 | $ 3.75 |
Weighted-average common shares outstanding: | |||||||||||
Basic | 436,947 | 437,587 | 438,090 | 438,547 | 437,799 | 439,352 | 440,569 | 441,526 | 442,220 | 440,922 | 443,224 |
Diluted | 451,922 | 452,195 | 451,552 | 451,367 | 451,765 | 452,494 | 453,945 | 455,088 | 455,283 | 454,208 | 455,641 |
Netflix, Inc. | |||||||||
Consolidated Balance Sheets | |||||||||
(unaudited) | |||||||||
(in thousands) | |||||||||
March 31, | June 30, | September 30, | December 31, | March 31, | June 30, | September 30, | December 31, | March 31, | |
2019 | 2019 | 2019 | 2019 | 2020 | 2020 | 2020 | 2020 | 2021 | |
Assets | |||||||||
Current assets: | |||||||||
Cash and cash equivalents | $ 3,348,557 | $ 5,004,247 | $ 4,435,018 | $ 5,018,437 | $ 5,151,884 | $ 7,153,248 | $ 8,392,391 | $ 8,205,550 | $ 8,403,705 |
Other current assets | 820,350 | 872,910 | 892,740 | 1,160,067 | 1,295,897 | 1,410,891 | 1,434,089 | 1,556,030 | 1,703,803 |
Total current assets | 4,168,907 | 5,877,157 | 5,327,758 | 6,178,504 | 6,447,781 | 8,564,139 | 9,826,480 | 9,761,580 | 10,107,508 |
Non-current content assets, net | 20,878,317 | 21,937,845 | 23,227,772 | 24,504,567 | 25,266,889 | 25,155,117 | 25,067,633 | 25,383,950 | 26,043,991 |
Property and equipment, net | 434,372 | 452,399 | 481,992 | 565,221 | 650,455 | 751,941 | 828,118 | 960,183 | 1,015,419 |
Other non-current assets | 1,737,036 | 1,903,938 | 1,904,189 | 2,727,420 | 2,694,785 | 2,704,084 | 2,900,312 | 3,174,646 | 2,956,096 |
Total assets | $ 27,218,632 | $ 30,171,339 | $ 30,941,711 | $ 33,975,712 | $ 35,059,910 | $ 37,175,281 | $ 38,622,543 | $ 39,280,359 | $ 40,123,014 |
Liabilities and Stockholders' Equity | |||||||||
Current liabilities: | |||||||||
Current content liabilities | $ 4,858,899 | $ 4,846,525 | $ 4,857,520 | $ 4,413,561 | $ 4,761,585 | $ 4,664,733 | $ 4,599,654 | $ 4,429,536 | $ 4,297,957 |
Accounts payable | 439,496 | 442,194 | 444,129 | 674,347 | 545,488 | 446,668 | 541,298 | 656,183 | 532,942 |
Accrued expenses and other liabilities | 750,720 | 752,488 | 1,040,745 | 843,043 | 1,061,090 | 986,595 | 1,259,124 | 1,102,196 | 1,291,812 |
Deferred revenue | 808,692 | 892,777 | 915,506 | 924,745 | 986,753 | 1,029,261 | 1,040,202 | 1,117,992 | 1,140,271 |
Short-term debt | - 0 | - 0 | - 0 | - 0 | 498,809 | 499,161 | 499,517 | 499,878 | 698,788 |
Total current liabilities | 6,857,807 | 6,933,984 | 7,257,900 | 6,855,696 | 7,853,725 | 7,626,418 | 7,939,795 | 7,805,785 | 7,961,770 |
Non-current content liabilities | 3,560,364 | 3,564,440 | 3,419,552 | 3,334,323 | 3,206,051 | 3,208,164 | 2,926,574 | 2,618,084 | 2,465,626 |
Long-term debt | 10,305,023 | 12,594,135 | 12,425,746 | 14,759,260 | 14,170,692 | 15,294,998 | 15,547,616 | 15,809,095 | 14,860,552 |
Other non-current liabilities | 792,380 | 973,232 | 977,008 | 1,444,276 | 1,420,148 | 1,710,948 | 1,875,235 | 1,982,155 | 1,950,986 |
Total liabilities | 21,515,574 | 24,065,791 | 24,080,206 | 26,393,555 | 26,650,616 | 27,840,528 | 28,289,220 | 28,215,119 | 27,238,934 |
Stockholders' equity: | |||||||||
Common stock | 2,439,773 | 2,566,365 | 2,677,972 | 2,793,929 | 2,935,532 | 3,127,813 | 3,303,482 | 3,447,698 | 3,600,084 |
Accumulated other comprehensive income (loss) | (25,600) | (20,352) | (41,246) | (23,521) | (47,054) | (34,072) | (1,147) | 44,398 | 4,137 |
Retained earnings | 3,288,885 | 3,559,535 | 4,224,779 | 4,811,749 | 5,520,816 | 6,241,012 | 7,030,988 | 7,573,144 | 9,279,859 |
Total stockholders' equity | 5,703,058 | 6,105,548 | 6,861,505 | 7,582,157 | 8,409,294 | 9,334,753 | 10,333,323 | 11,065,240 | 12,884,080 |
Total liabilities and stockholders' equity | $ 27,218,632 | $ 30,171,339 | $ 30,941,711 | $ 33,975,712 | $ 35,059,910 | $ 37,175,281 | $ 38,622,543 | $ 39,280,359 | $ 40,123,014 |
Netflix, Inc. | |||||||||||
Consolidated Statements of Cash Flows | |||||||||||
(unaudited) | |||||||||||
(in thousands) | |||||||||||
Three Months Ended | Twelve Months Ended | Three Months Ended | Twelve Months Ended | Three Months Ended | |||||||
March 31, | June 30, | September 30, | December 31, | December 31, | March 31, | June 30, | September 30, | December 31, | December 31, | March 31, | |
2019 | 2019 | 2019 | 2019 | 2019 | 2020 | 2020 | 2020 | 2020 | 2020 | 2021 | |
Cash flows from operating activities: | |||||||||||
Net income | $ 344,052 | $ 270,650 | $ 665,244 | $ 586,970 | $ 1,866,916 | $ 709,067 | $ 720,196 | $ 789,976 | $ 542,156 | $ 2,761,395 | $ 1,706,715 |
Adjustments to reconcile net income to net cash | |||||||||||
provided by (used in) operating activities: | |||||||||||
Additions to content assets | (2,997,746) | (3,325,103) | (3,648,292) | (3,945,542) | (13,916,683) | (3,294,275) | (2,510,782) | (2,653,886) | (3,320,341) | (11,779,284) | (3,284,576) |
Change in content liabilities | (14,698) | (12,414) | (95,548) | (571,351) | (694,011) | 258,945 | (108,432) | (379,458) | (528,488) | (757,433) | (266,040) |
Amortization of content assets | 2,124,686 | 2,231,915 | 2,279,977 | 2,579,669 | 9,216,247 | 2,483,385 | 2,607,159 | 2,733,743 | 2,982,625 | 10,806,912 | 2,719,196 |
Depreciation and amortization of property, equipment and intangibles | 23,561 | 25,496 | 26,704 | 27,818 | 103,579 | 28,517 | 26,661 | 28,589 | 31,943 | 115,710 | 35,741 |
Stock-based compensation expense | 101,200 | 103,848 | 100,262 | 100,066 | 405,376 | 97,019 | 104,210 | 106,357 | 107,594 | 415,180 | 107,230 |
Foreign currency remeasurement loss (gain) on debt | (57,600) | 61,284 | (171,360) | 122,100 | (45,576) | (93,060) | 119,161 | 249,194 | 257,983 | 533,278 | (253,330) |
Other non-cash items | 45,708 | 60,695 | 57,934 | 63,893 | 228,230 | 65,448 | 70,301 | 83,851 | 73,526 | 293,126 | 72,657 |
Deferred income taxes | 6,627 | 35,519 | 52,105 | (188,694) | (94,443) | 46,619 | 223,308 | (40,277) | (159,584) | 70,066 | 159,733 |
Changes in operating assets and liabilities: | |||||||||||
Other current assets | (32,076) | (24,231) | 145 | (195,951) | (252,113) | (127,353) | 3,066 | (22,974) | (40,362) | (187,623) | (221,555) |
Accounts payable | (124,467) | (2,674) | (7,643) | 230,847 | 96,063 | (149,153) | (112,027) | 111,677 | 107,898 | (41,605) | (137,313) |
Accrued expenses and other liabilities | 157,647 | (26,705) | 260,872 | (234,036) | 157,778 | 214,191 | (105,450) | 266,027 | (176,585) | 198,183 | 177,897 |
Deferred revenue | 47,793 | 84,085 | 22,729 | 9,239 | 163,846 | 62,008 | 42,508 | 10,941 | 77,790 | 193,247 | 22,279 |
Other non-current assets and liabilities | (4,486) | (26,119) | (44,923) | (47,003) | (122,531) | (41,446) | (38,803) | (19,999) | (93,827) | (194,075) | (61,368) |
Net cash provided by (used in) operating activities | (379,799) | (543,754) | (501,794) | (1,461,975) | (2,887,322) | 259,912 | 1,041,076 | 1,263,761 | (137,672) | 2,427,077 | 777,266 |
Cash flows from investing activities: | |||||||||||
Purchases of property and equipment | (60,381) | (39,584) | (45,333) | (107,737) | (253,035) | (98,015) | (141,741) | (109,811) | (148,356) | (497,923) | (81,001) |
Change in other assets | (19,722) | (10,452) | (4,021) | (99,834) | (134,029) | (288) | (260) | (8,840) | 1,957 | (7,431) | (4,615) |
Net cash used in investing activities | (80,103) | (50,036) | (49,354) | (207,571) | (387,064) | (98,303) | (142,001) | (118,651) | (146,399) | (505,354) | (85,616) |
Cash flows from financing activities: | |||||||||||
Repayments of debt | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | (500,000) |
Proceeds from issuance of debt | - 0 | 2,243,196 | - 0 | 2,226,110 | 4,469,306 | - 0 | 1,009,464 | - 0 | - 0 | 1,009,464 | - 0 |
Debt issuance costs | - 0 | (18,192) | - 0 | (17,942) | (36,134) | - 0 | (7,559) | - 0 | - 0 | (7,559) | - 0 |
Proceeds from issuance of common stock | 22,972 | 21,896 | 11,989 | 15,633 | 72,490 | 43,694 | 89,060 | 68,665 | 33,987 | 235,406 | 48,071 |
Net cash provided by (used in) financing activities | 22,972 | 2,246,900 | 11,989 | 2,223,801 | 4,505,662 | 43,694 | 1,090,965 | 68,665 | 33,987 | 1,237,311 | (451,929) |
Effect of exchange rate changes on cash, cash equivalents, and restricted cash | (5,014) | 4,998 | (29,325) | 29,810 | 469 | (70,902) | 11,819 | 28,459 | 66,674 | 36,050 | (42,138) |
Net increase (decrease) in cash, cash equivalents, and restricted cash | (441,944) | 1,658,108 | (568,484) | 584,065 | 1,231,745 | 134,401 | 2,001,859 | 1,242,234 | (183,410) | 3,195,084 | 197,583 |
Cash, cash equivalents, and restricted cash beginning of period | 3,812,041 | 3,370,097 | 5,028,205 | 4,459,721 | 3,812,041 | 5,043,786 | 5,178,187 | 7,180,046 | 8,422,280 | 5,043,786 | 8,238,870 |
Cash, cash equivalents, and restricted cash end of period | $ 3,370,097 | $ 5,028,205 | $ 4,459,721 | $ 5,043,786 | $ 5,043,786 | $ 5,178,187 | $ 7,180,046 | $ 8,422,280 | $ 8,238,870 | $ 8,238,870 | $ 8,436,453 |
Non-GAAP free cash flow reconciliation: | |||||||||||
Net cash provided by (used in) operating activities | $ (379,799) | $ (543,754) | $ (501,794) | $ (1,461,975) | $ (2,887,322) | $ 259,912 | $ 1,041,076 | $ 1,263,761 | $ (137,672) | $ 2,427,077 | $ 777,266 |
Purchases of property and equipment | (60,381) | (39,584) | (45,333) | (107,737) | (253,035) | (98,015) | (141,741) | (109,811) | (148,356) | (497,923) | (81,001) |
Change in other assets | (19,722) | (10,452) | (4,021) | (99,834) | (134,029) | (288) | (260) | (8,840) | 1,957 | (7,431) | (4,615) |
Non-GAAP free cash flow | $ (459,902) | $ (593,790) | $ (551,148) | $ (1,669,546) | $ (3,274,386) | $ 161,609 | $ 899,075 | $ 1,145,110 | $ (284,071) | $ 1,921,723 | $ 691,650 |
Netflix, Inc. | |||||||||||
Streaming Revenue and Membership Information by Region | |||||||||||
(unaudited) | |||||||||||
(in thousands, except for average revenue per membership and percentages) | |||||||||||
As of / Three Months Ended | As of / Year Ended | As of / Three Months Ended | As of / Year Ended | As of / Three Months Ended | |||||||
March 31, | June 30, | September 30, | December 31, | December 31, | March 31, | June 30, | September 30, | December 31, | December 31, | March 31, | |
2019 | 2019 | 2019 | 2019 | 2019 | 2020 | 2020 | 2020 | 2020 | 2020 | 2021 | |
United States and Canada (UCAN) | |||||||||||
Revenues (1) | $ 2,256,851 | $ 2,501,199 | $ 2,621,250 | $ 2,671,908 | $ 10,051,208 | $ 2,702,776 | $ 2,839,670 | $ 2,933,445 | $ 2,979,505 | $ 11,455,396 | $ 3,170,972 |
Paid net membership additions (losses) | 1,876 | (132) | 613 | 548 | 2,905 | 2,307 | 2,935 | 177 | 855 | 6,274 | 448 |
Paid memberships at end of period | 66,633 | 66,501 | 67,114 | 67,662 | 67,662 | 69,969 | 72,904 | 73,081 | 73,936 | 73,936 | 74,384 |
Average paying memberships | 65,695 | 66,567 | 66,808 | 67,388 | 66,615 | 68,816 | 71,437 | 72,993 | 73,509 | 71,689 | 74,160 |
Average revenue per membership | $11.45 | $12.52 | $13.08 | $13.22 | $12.57 | $13.09 | $13.25 | $13.40 | $13.51 | $13.32 | $14.25 |
% change as compared to prior-year period | 4% | 12% | 17% | 17% | 13% | 14% | 6% | 2% | 2% | 6% | 9% |
Constant currency % change as compared to prior-year period* | 4% | 13% | 17% | 17% | 13% | 14% | 6% | 3% | 2% | 6% | 9% |
Europe, Middle East and Africa (EMEA) | |||||||||||
Revenues | $ 1,233,379 | $ 1,319,087 | $ 1,428,040 | $ 1,562,561 | $ 5,543,067 | $ 1,723,474 | $ 1,892,537 | $ 2,019,083 | $ 2,137,158 | $ 7,772,252 | $ 2,343,674 |
Paid net membership additions | 4,724 | 1,687 | 3,126 | 4,423 | 13,960 | 6,956 | 2,749 | 759 | 4,456 | 14,920 | 1,810 |
Paid memberships at end of period | 42,542 | 44,229 | 47,355 | 51,778 | 51,778 | 58,734 | 61,483 | 62,242 | 66,698 | 66,698 | 68,508 |
Average paying memberships | 40,180 | 43,386 | 45,792 | 49,567 | 44,731 | 55,256 | 60,109 | 61,863 | 64,470 | 60,425 | 67,603 |
Average revenue per membership | $10.23 | $10.13 | $10.40 | $10.51 | $10.33 | $10.40 | $10.50 | $10.88 | $11.05 | $10.72 | $11.56 |
% change as compared to prior-year period | -4% | -6% | 1% | 3% | -1% | 2% | 4% | 5% | 5% | 4% | 11% |
Constant currency % change as compared to prior-year period* | 2% | 3% | 6% | 7% | 4% | 4% | 8% | 3% | 0% | 3% | 4% |
Latin America (LATAM) | |||||||||||
Revenues | $ 630,472 | $ 677,136 | $ 741,434 | $ 746,392 | $ 2,795,434 | $ 793,453 | $ 785,368 | $ 789,384 | $ 788,522 | $ 3,156,727 | $ 836,647 |
Paid net membership additions | 1,470 | 343 | 1,490 | 2,037 | 5,340 | 2,901 | 1,750 | 256 | 1,213 | 6,120 | 357 |
Paid memberships at end of period | 27,547 | 27,890 | 29,380 | 31,417 | 31,417 | 34,318 | 36,068 | 36,324 | 37,537 | 37,537 | 37,894 |
Average paying memberships | 26,812 | 27,719 | 28,635 | 30,399 | 28,391 | 32,868 | 35,193 | 36,196 | 36,931 | 35,297 | 37,716 |
Average revenue per membership | $7.84 | $8.14 | $8.63 | $8.18 | $8.21 | $8.05 | $7.44 | $7.27 | $7.12 | $7.45 | $7.39 |
% change as compared to prior-year period | -11% | -5% | 8% | 9% | 0% | 3% | -9% | -16% | -13% | -9% | -8% |
Constant currency % change as compared to prior-year period* | 7% | 12% | 17% | 18% | 13% | 12% | 13% | 5% | 4% | 8% | 5% |
Asia-Pacific (APAC) | |||||||||||
Revenues | $ 319,602 | $ 349,494 | $ 382,304 | $ 418,121 | $ 1,469,521 | $ 483,660 | $ 569,140 | $ 634,891 | $ 684,609 | $ 2,372,300 | $ 762,414 |
Paid net membership additions | 1,534 | 801 | 1,543 | 1,748 | 5,626 | 3,602 | 2,657 | 1,012 | 1,988 | 9,259 | 1,361 |
Paid memberships at end of period | 12,141 | 12,942 | 14,485 | 16,233 | 16,233 | 19,835 | 22,492 | 23,504 | 25,492 | 25,492 | 26,853 |
Average paying memberships | 11,374 | 12,542 | 13,714 | 15,359 | 13,247 | 18,034 | 21,164 | 22,998 | 24,498 | 21,674 | 26,173 |
Average revenue per membership | $9.37 | $9.29 | $9.29 | $9.07 | $9.24 | $8.94 | $8.96 | $9.20 | $9.32 | $9.12 | $9.71 |
% change as compared to prior-year period | -2% | -1% | 0% | -1% | -1% | -5% | -4% | -1% | 3% | -1% | 9% |
Constant currency % change as compared to prior-year period* | 3% | 5% | 3% | 0% | 3% | -3% | 1% | -1% | 0% | -1% | 3% |
(1) Excludes DVD revenues of $297 million, $239 million, and $50 million for the years ended December 31, 2019, 2020, and the three months ended March 31, 2021, respectively. Total US revenues for the years ended December 31, 2019, 2020, and the three months ended March 31, 2021 were $9.5 billion, $10.8 billion and $3.0 billion, respectively. | |||||||||||
* The company believes that constant currency information is useful in analyzing the underlying trends in average monthly revenue per paying membership. In order to exclude the effect of foreign currency rate fluctuations on average monthly revenue per paying membership, the Company estimates the current period revenue assuming foreign exchange rates had remained constant with foreign exchange rates from each of the corresponding months of the prior-year period. |