8-KEarnings & ResultsExhibits & Filings

NETFLIX INC 8-K Report, Financial Results (Apr 21, 2010)

Filed April 21, 2010For Securities:NFLX

Summary

Netflix, Inc. filed this Form 8-K on April 21, 2010, to report its financial results for the first quarter ended March 31, 2010. The filing primarily serves to announce these results, which are detailed in an attached press release and management commentary. 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 useful insights into operating performance and liquidity, respectively. While these non-GAAP measures exclude items like stock-based compensation and certain investment/financing activities, the company emphasizes that they should be considered alongside, not as a replacement for, GAAP-based financial figures. The inclusion of these supplemental metrics indicates Netflix's focus on providing a comprehensive view of its financial health to stakeholders, particularly as it navigates its growth phase.

Key Highlights

  • 1Netflix announced its financial results for the first quarter ended March 31, 2010.
  • 2The company is releasing a press release and management commentary with these results.
  • 3Netflix 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.
  • 5Free cash flow is also being provided as a measure of liquidity.
  • 6Free cash flow excludes non-operational cash flows from investments and financing activities.
  • 7Netflix cautions that 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 Netflix's financial results for the first quarter ended March 31, 2010, along with an attached press release and management commentary.

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

Management believes these non-GAAP measures are useful for investors. Non-GAAP net income provides a clearer view of operating performance by excluding stock-based compensation, and free cash flow offers a better understanding of the company's liquidity by excluding certain investing and financing activities.

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, or other financial measures prepared in accordance with GAAP. They provide supplemental insights.