Spencer Wang's questions to Netflix Inc (NFLX) leadership • Q4 2024
Question
Spencer Wang of HSBC asked about the operational impact of the California fires, the company's foreign exchange hedging strategy, the long-term view on content spending, and 2025 expense drivers.
Answer
Theodore Sarandos (Co-CEO) confirmed that while the California fires caused meaningful disruption to employees' lives, there would be no meaningful delays to project delivery or impact on 2025 cash flow. Spencer Neumann (CFO) then explained that Netflix hedges about 50% of its non-USD revenue to smooth FX volatility. He stated the company is far from a content spending 'equilibrium,' with cash content spend rising to ~$18B in 2025, and detailed that expense growth is projected in the high single digits, below revenue growth, driven by strategic investments.