8-KEarnings & ResultsExhibits & Filings

NETFLIX INC 8-K Report, Financial Results (Apr 18, 2016)

Filed April 18, 2016For Securities:NFLX

Summary

This 8-K filing from Netflix, Inc., dated April 18, 2016, announces the company's financial results for the first quarter ended March 31, 2016. The filing primarily refers to the attached Letter to Shareholders (Exhibit 99.1) for detailed operational and financial performance. Investors should note that Netflix is presenting certain non-GAAP financial measures, including net income excluding a release of tax reserves, free cash flow, and EBITDA, alongside their GAAP equivalents. Management believes these non-GAAP metrics offer valuable insights into the company's core operating results and liquidity, particularly concerning cash generation for content investment and debt obligations. Investors are encouraged to review the reconciliations provided in the Letter to Shareholders for a comprehensive understanding of these figures relative to GAAP measures.

Key Highlights

  • 1Netflix reported its Q1 2016 financial results on April 18, 2016.
  • 2The filing includes a Letter to Shareholders (Exhibit 99.1) detailing the financial performance for the quarter ended March 31, 2016.
  • 3The company is utilizing non-GAAP financial measures: net income excluding release of tax reserves, free cash flow, and EBITDA.
  • 4Management asserts these non-GAAP measures provide useful insights into core operating results and liquidity.
  • 5Free cash flow and EBITDA are highlighted as key liquidity metrics for assessing cash available for content investment and debt repayment.
  • 6Investors are advised that these non-GAAP measures should be considered in addition to, not as a substitute for, GAAP financial results.
  • 7Reconciliations of non-GAAP measures to their GAAP equivalents are available in the attached Exhibit 99.1.

Frequently Asked Questions

This 8-K filing serves to announce Netflix's financial results for the first quarter ended March 31, 2016, and to file the accompanying Letter to Shareholders as an exhibit.

Netflix is using net income on a pro forma basis excluding the release of tax reserves, free cash flow, and EBITDA. Management believes these metrics offer a clearer view of core operations and liquidity.

Management believes these non-GAAP measures, such as free cash flow and EBITDA, provide important insights into the company's liquidity and its ability to generate cash for critical activities like content investment and debt obligations, beyond what is strictly shown in GAAP net income.

The detailed financial performance and reconciliations for the non-GAAP measures to their GAAP equivalents are provided in the Letter to Shareholders, which is included as Exhibit 99.1 to this 8-K filing.