8-KEarnings & ResultsExhibits & Filings

NETFLIX INC 8-K Report, Financial Results (Oct 17, 2016)

Filed October 17, 2016For Securities:NFLX

Summary

Netflix, Inc. (NFLX) filed an 8-K on October 17, 2016, to announce its financial results for the quarter ended September 30, 2016. The filing includes a Letter to Shareholders, which details the company's performance and outlook. Investors should note that the company utilizes and references several non-GAAP financial measures, such as pro forma net income excluding tax reserve releases, constant currency revenue and ASP growth, free cash flow, and EBITDA. Management believes these non-GAAP measures provide valuable insights into the company's core operations and financial health, particularly in assessing underlying business performance and liquidity, though they should be considered alongside GAAP measures.

Key Highlights

  • 1Netflix reported its financial results for the third quarter of 2016 on October 17, 2016.
  • 2The company referenced several non-GAAP financial measures in its shareholder letter, including pro forma net income (excluding tax reserve releases), constant currency revenue/ASP growth, free cash flow, and EBITDA.
  • 3Management believes these non-GAAP measures offer a clearer view of core operating results and underlying business performance, excluding factors like foreign currency fluctuations and specific tax items.
  • 4The filing incorporates by reference the 'Letter to Shareholders' dated October 17, 2016, as Exhibit 99.1.
  • 5Reconciliations between the non-GAAP financial measures and their closest GAAP equivalents are provided within the referenced shareholder letter.
  • 6The 8-K filing specifies that the information contained within it is not considered 'filed' for Section 18 of the Exchange Act, nor incorporated into other filings unless explicitly stated.

Frequently Asked Questions

The primary purpose of this 8-K filing is to officially announce Netflix's financial results for the quarter ended September 30, 2016, and to provide investors with a Letter to Shareholders that elaborates on these results and the company's performance.

Netflix uses non-GAAP financial measures to provide what they believe is a more insightful view of their core business operations and financial performance. For example, excluding tax reserve releases helps to show ongoing operational profitability, and constant currency measures help to assess growth trends without the impact of fluctuating exchange rates. They are presented to supplement, not replace, GAAP measures.

The detailed financial results and the reconciliations of the non-GAAP financial measures to their most directly comparable GAAP measures are located in the 'Letter to Shareholders' dated October 17, 2016, which is attached as Exhibit 99.1 to this 8-K filing.

This statement means that while the information is being disclosed, it does not carry the same legal implications under Section 18 of the Securities Exchange Act of 1934 as information that is officially 'filed'. This distinction is important for legal liability purposes, as information deemed 'filed' can be subject to stricter legal scrutiny.