8-KEarnings & ResultsExhibits & Filings

NETFLIX INC 8-K Report, Financial Results (Jan 27, 2010)

Filed January 27, 2010For Securities:NFLX

Summary

Netflix, Inc. (NFLX) filed an 8-K on January 27, 2010, to announce its financial results for the fourth quarter and full year ended December 31, 2009. The filing primarily serves to attach the press release and management commentary detailing these results. Investors should note that the company presented certain non-GAAP financial measures, specifically non-GAAP net income and free cash flow, which management believes offer useful insights into operating performance and liquidity by excluding items like stock-based compensation and certain investment activities. While the core financial figures from the press release and commentary are not detailed within the 8-K itself, the report emphasizes the company's belief in the utility of these adjusted metrics. Investors are advised to consider these non-GAAP measures alongside their GAAP counterparts to gain a comprehensive understanding of Netflix's financial health. The filing also clarifies that the attached exhibits are furnished and not deemed 'filed' for purposes of Section 18 of the Securities Exchange Act of 1934, meaning they don't carry the same legal implications as formally filed information.

Key Highlights

  • 1Netflix announced its financial results for the fourth quarter and full year ended December 31, 2009.
  • 2The 8-K filing primarily serves as a vehicle to furnish a press release (Exhibit 99.1) and management commentary (Exhibit 99.2) regarding these results.
  • 3The company presented non-GAAP financial measures, including non-GAAP net income and free cash flow.
  • 4Management believes non-GAAP net income is a useful measure of operating performance as it excludes the non-cash impact of stock option accounting.
  • 5Management views free cash flow as a valuable liquidity measure, excluding non-operational cash flows from investments and financing activities.
  • 6Investors are encouraged to consider these non-GAAP measures in addition to, not as a substitute for, GAAP financial measures.
  • 7The attached exhibits are furnished, not 'filed,' meaning they have different legal implications under the Securities Exchange Act of 1934.

Frequently Asked Questions

The primary purpose of this 8-K filing by Netflix on January 27, 2010, is to publicly announce and provide access to the company's financial results for the fourth quarter and the full fiscal year ended December 31, 2009. It achieves this by attaching the official press release and management's commentary as exhibits.

Netflix highlighted 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 adjusts for certain investment and financing activities. The company believes these measures provide additional useful insights into performance and liquidity.

Investors should view these non-GAAP measures as supplementary information. While management finds them useful for understanding operating performance and liquidity, they should be considered alongside the standard financial measures prepared in accordance with Generally Accepted Accounting Principles (GAAP). They are not intended to replace GAAP figures.

No, the filing explicitly states that the attached exhibits (the press release and management commentary) are 'furnished' rather than 'filed.' This distinction is important because 'furnished' information does not carry the same legal implications or liabilities under Section 18 of the Securities Exchange Act of 1934 as 'filed' information.