8-KEarnings & ResultsExhibits & Filings

NETFLIX INC 8-K Report, Financial Results (Oct 22, 2009)

Filed October 22, 2009For Securities:NFLX

Summary

Netflix, Inc. (NFLX) filed an 8-K on October 22, 2009, to announce its financial results for the quarter ended September 30, 2009. The filing primarily serves as a notification that the company has released its earnings and includes a press release (Exhibit 99.1) detailing these results. Investors should note that the company is presenting certain non-GAAP financial measures, specifically non-GAAP net income and free cash flow, which management believes offer valuable insights into operating performance and liquidity, respectively. While GAAP measures remain the standard, the company highlights that non-GAAP net income excludes the impact of stock option accounting, and free cash flow excludes certain non-operational cash flows. These non-GAAP metrics are presented to supplement, not replace, standard GAAP reporting, ensuring a consistent view of performance over time. Investors are encouraged to review the accompanying press release for the specific figures and detailed explanations of these measures.

Key Highlights

  • 1Netflix, Inc. announced its financial results for the third quarter ended September 30, 2009.
  • 2The 8-K filing incorporates by reference a press release detailing these results, which is filed as Exhibit 99.1.
  • 3The company is presenting non-GAAP financial measures, including non-GAAP net income.
  • 4Non-GAAP net income is presented to exclude the non-cash impact of stock option accounting.
  • 5The company also highlights free cash flow as a useful measure of liquidity.
  • 6Free cash flow is presented to exclude non-operational cash flows related to investments and financing activities.
  • 7Netflix emphasizes that these non-GAAP measures should be considered in addition to, and not as a substitute for, GAAP measures.

Frequently Asked Questions

The primary purpose of this 8-K filing is to announce and provide access to Netflix's financial results for the quarter ended September 30, 2009, through an accompanying press release.

Netflix is providing non-GAAP net income, which excludes the non-cash impact of stock option accounting, and free cash flow, which excludes certain non-operational cash flows related to investments and financing activities.

Management believes these non-GAAP measures offer additional insights into the company's operating performance (non-GAAP net income) and liquidity (free cash flow) by removing certain accounting or operational impacts that may not reflect the core business performance.

Investors should interpret these non-GAAP figures as supplementary information. They should be considered alongside, and not as a replacement for, the standard financial measures calculated in accordance with Generally Accepted Accounting Principles (GAAP).