8-KEarnings & ResultsExhibits & Filings

NETFLIX INC 8-K Report, Financial Results (Apr 17, 2017)

Filed April 17, 2017For Securities:NFLX

Summary

This 8-K filing from Netflix, Inc. (NFLX) on April 17, 2017, primarily serves to announce the company's financial results for the first quarter ended March 31, 2017. The report highlights the use of non-GAAP financial measures, specifically free cash flow and EBITDA, which the company's management considers important for assessing liquidity and cash generation available for various corporate activities, including investments in global streaming content. Investors are advised that these non-GAAP metrics should be viewed alongside, and not as a replacement for, GAAP-based financial figures like net income and operating cash flow. The accompanying "Letter to Shareholders" (Exhibit 99.1) provides the detailed financial results and reconciliations for these non-GAAP measures. While this filing itself is informational and not treated as 'filed' for Section 18 purposes, it directs stakeholders to the comprehensive Q1 2017 financial performance data and management's commentary contained within the attached shareholder letter.

Key Highlights

  • 1Netflix announced its Q1 2017 financial results on April 17, 2017.
  • 2The report highlights the company's use of non-GAAP financial measures: free cash flow and EBITDA.
  • 3Management considers free cash flow and EBITDA important liquidity metrics.
  • 4These non-GAAP measures help assess cash generated for debt repayment, investments, and other activities.
  • 5Free cash flow and EBITDA are presented as measures of cash used in operations and investments in global streaming content.
  • 6Investors are cautioned to consider these non-GAAP measures in conjunction with, and not as a substitute for, GAAP financial measures.
  • 7Detailed reconciliations of non-GAAP to GAAP measures are available in the attached Letter to Shareholders (Exhibit 99.1).

Frequently Asked Questions

The main purpose of this 8-K filing is to announce Netflix's financial results for the first quarter ended March 31, 2017, and to provide context on the non-GAAP financial measures used by the company.

Netflix emphasizes 'free cash flow' and 'EBITDA' as non-GAAP financial measures in this report. Management believes these metrics are important for understanding the company's liquidity and cash generation.

Investors should interpret these non-GAAP measures as supplementary tools to assess liquidity and cash generation. However, they should always be considered in addition to, and not as a substitute for, standard GAAP financial measures like net income and net cash provided by operating activities.

More detailed financial information, including the reconciliation of non-GAAP financial measures to their GAAP equivalents, can be found in the 'Letter to Shareholders' dated April 17, 2017, which is included as Exhibit 99.1 to this 8-K filing.