8-KEarnings & ResultsExhibits & Filings

NETFLIX INC 8-K Report, Financial Results (Oct 23, 2006)

Filed October 23, 2006For Securities:NFLX

Summary

This 8-K filing from Netflix, Inc. (NFLX) on October 23, 2006, primarily serves to announce the company's financial results for the quarter ended September 30, 2006. While the filing itself does not contain the full financial details, it references an attached press release (Exhibit 99.1) which contains the specific results. Investors should note that the company presents both GAAP and non-GAAP financial measures, with management highlighting non-GAAP net income (excluding stock option accounting) and free cash flow (excluding short-term investments and financing activities) as useful indicators of performance and liquidity, respectively. However, the company cautions that these non-GAAP measures should be considered in conjunction with, and not as a substitute for, GAAP measures.

Key Highlights

  • 1Netflix announced its financial results for the quarter ended September 30, 2006, via a press release filed as an exhibit.
  • 2The filing introduces non-GAAP financial measures, including non-GAAP net income, which excludes the impact of stock option accounting.
  • 3Management believes non-GAAP net income provides a useful view of operating performance by removing non-cash charges.
  • 4Free cash flow is also presented as a key non-GAAP metric, defined as cash flow excluding purchases/sales of short-term investments and financing activities.
  • 5The company emphasizes that non-GAAP measures are supplementary and should be considered alongside GAAP financial results.
  • 6The Chief Financial Officer, Barry McCarthy, signed the report.
  • 7The information provided is considered furnished and not 'filed' for the purposes of Section 18 of the Securities Exchange Act of 1934.

Frequently Asked Questions

The primary purpose of this 8-K filing is to announce and disclose Netflix, Inc.'s financial results for the third quarter of 2006. It directs investors to a press release (Exhibit 99.1) for the detailed financial information.

Netflix highlights two key non-GAAP financial measures: non-GAAP net income, which excludes the non-cash impact of stock option accounting, and free cash flow, which excludes cash flows from the purchase and sale of short-term investments and financing activities. Management believes these provide useful insights into performance and liquidity.

Netflix advises investors to consider these non-GAAP measures in addition to, but not as a substitute for, or superior to, net income and net cash provided by operating activities prepared in accordance with GAAP. They are presented to offer an alternative view of financial performance and liquidity.

No, according to the filing, the information contained within this report, particularly the press release, is considered 'furnished' and not 'filed' for the purposes of Section 18 of the Securities Exchange Act of 1934. This means it does not carry the same legal implications as a traditionally 'filed' document.