f6edb30dff9f8a6941ee8920c5cf594285dcd5753bb720cc373c210100cb0d61

Adjustments for Non-Cash Items

Stock-Based Compensation

Changes in Working Capital

Capital Expenditures (CapEx)

Proceeds from Debt

Repayments of Debt

Share Repurchases

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5196f157496c380ce2256fffa3fb431c5c4d41437fb568123eabe73a63e82305

United States and Canada

Europe, Middle East, and Africa

Latin America

Asia-Pacific

DVD Revenues (U.S. only)

Domestic Streaming

International Streaming

- United States and Canada

- Europe, Middle East, and Africa

- Latin America

- Asia-Pacific

Domestic DVD

Total Revenue

24eb16c4e1608aab0989ac955029435e7debd270df1e1a316d3a225ab4932ae3

Streaming Revenues

DVD Revenues

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bb49e8a3ff89b2c1bd7f4692599ba0c8f2847124e4e281b118883ba92ca59c2a

Cash and cash equivalents (USD, thousands)

Short-term investments (USD, thousands)

Other current assets (USD, thousands)

Total current assets (USD, thousands)

Content assets, net (USD, thousands)

Property and equipment, net (USD, thousands)

Other non-current assets (USD, thousands)

Total assets (USD, thousands)

Current content liabilities (USD, thousands)

Accounts payable (USD, thousands)

Accrued expenses and other liabilities (USD, thousands)

Deferred revenue (USD, thousands)

Short-term debt (USD, thousands)

Total current liabilities (USD, thousands)

Non-current content liabilities (USD, thousands)

Long-term debt (USD, thousands)

Other non-current liabilities (USD, thousands)

Total liabilities (USD, thousands)

Common stock (USD, thousands)

Treasury stock at cost (USD, thousands)

Accumulated other comprehensive income (loss) (USD, thousands)

Retained earnings (USD, thousands)

Total stockholders’ equity (USD, thousands)

Total liabilities and stockholders’ equity (USD, thousands)

288aea50b596a12b1ecc86ccd705f61a7c07e0e6c6b2b557843af7d85f9babac

Revenues (USD, thousands)

Cost of Revenues (USD, thousands)

Marketing (USD, thousands)

Technology and Development (USD, thousands)

General and Administrative (USD, thousands)

Operating Income (USD, thousands)

Interest Expense (USD, thousands)

Interest and Other Income (Expense) (USD, thousands)

Income Before Income Taxes (USD, thousands)

Provision for Income Taxes (USD, thousands)

Net Income (USD, thousands)

70b38d45fd41ef1ec4514c2a4b2a6d847735862eb40bdc611b3471154c05bde7

The significant increase in **net income** in Q1 2024 was driven by multiple factors. **Revenue increased by 15%**, with total revenues rising from **$8,161,503 thousand** in Q1 2023 to **$9,370,440 thousand** in Q1 2024, largely due to higher streaming revenues and increased paid memberships. **Operating income improved by 54%**—from **$1,714,317 thousand** to **$2,632,534 thousand**—which also boosted the operating margin from **21%** to **28%**, reflecting better cost management. Additionally, a positive shift in **foreign exchange gains** (from a loss of **$80,651 thousand** in Q1 2023 to a gain of **$130,801 thousand** in Q1 2024) and a proportionally smaller increase in the provision for income taxes further supported the rise in net income.  **[0001065280-24-000128_nflx-20240331.htm:21]** **[0001065280-24-000128_nflx-20240331.htm:2]** **[0001065280-24-000128_nflx-20240331.htm:1]** 

What drove the significant increase in Net income in Q1 2024?

Capital expenditures, represented by purchases of property and equipment, increased from **$81,632 thousand** in Q4 2023  **[0001065280-24-000030_nflx-20231231.htm:78]**  to **$158,674 thousand** in Q4 2024.  **[0001065280-25-000044_nflx-20241231.htm:81]**  However, the documents do not provide specific reasons for this near doubling.   

Why did capital expenditures nearly double in Q4 2024?

The surge in operating cash flow in **Q3 2024** was primarily driven by an increase in **net income**—which rose by **$686 million (41%)**—and enhanced by **non-cash expense adjustments** as well as **favorable working capital changes**. These positive factors were partially offset by a **$890 million (28%) increase in payments for content assets**.  **[0001065280-24-000287_nflx-20240930.htm:41]** 

What contributed to the surge in operating cash flow in Q3 2024?

The documents indicate that the **deferred income taxes** in Q3 2024 saw a much larger decrease of **$200,982 thousand** (compared to a decrease of **$86,277 thousand** in Q3 2023), which suggests a much larger deferred income tax expense. However, they do not provide a specific explanation for this bigger change. In general, such fluctuations can occur due to factors like **changes in temporary differences between book and tax reporting, adjustments in tax rates, or changes in tax laws**, but the documents do not confirm a particular driver for this case.   

What led to the much larger deferred income tax expense in Q3 2024?

b7b7672aad55231d2a4470e79ecb1c285f0a9372755044cd4d15fd2295090664

The surge in short-term debt in Q2 2024 was driven primarily by the **reclassification of a portion of long-term debt to short-term debt** as it neared its maturity within the next 12 months, including the **repayment of $400 million of its 5.750% Senior Notes** upon maturity. This reclassification and upcoming maturities substantially increased the reported short-term debt.  **[0001065280-24-000200_nflx-20240630.htm:33]** **[0001065280-24-000200_nflx-20240630.htm:3]** 

What drove the surge in Short-term debt in Q2 2024?

Netflix's **long-term debt** in **Q2 2024** was significantly lower because the company repaid **$400 million** of its **5.750% Senior Notes** upon maturity and benefited from a favorable **remeasurement of its euro-denominated notes**, which together reduced the debt balance.  **[0001065280-24-000200_nflx-20240630.htm:33]** **[0001065280-24-000128_nflx-20240331.htm:26]** 

Why was Long-term debt significantly lower in Q2 2024?

The increase in **Total Assets** in Q4 2024 was driven by several factors. Notably, **cash and cash equivalents** grew from **7,116,913 thousand** to **7,804,733 thousand**, **short-term investments** experienced a substantial rise from **20,973 thousand** to **1,779,006 thousand**, **other current assets** increased from **2,780,247 thousand** to **3,516,640 thousand**, **content assets, net** went up from **31,658,056 thousand** to **32,452,462 thousand**, and **other non-current assets** expanded from **5,664,359 thousand** to **6,483,777 thousand**.  **[0001065280-25-000044_nflx-20241231.htm:82]** **[0001065280-25-000033_ex991_q424.htm:10]** 

What factors contributed to the increase in Total Assets in Q4 2024?

In Q2 2024, Netflix's **cash and cash equivalents** dipped primarily due to a **repurchase of stock**—6,145,069 shares were repurchased for **$3.6 billion**—and a **repayment of $400 million** in Senior Notes, with these outflows only partially offset by cash provided by operations and proceeds from the issuance of common stock.  **[0001065280-24-000200_nflx-20240630.htm:33]** **[0001065280-24-000200_nflx-20240630.htm:3]** 

Why did Cash and Cash Equivalents dip in Q2 2024?

a61d382994b4dd6f572b0ef968932ce3c817572371169919c0d031fc45278287

The large jump in Operating Income in Q1 2024 was driven by **strong revenue growth** — revenues increased by **15%** — and an expansion of the **operating margin by 7 percentage points** (from 21% to 28%). This improvement was supported by **effective cost management**, such as a relatively modest increase in cost of revenues compared to the revenue increase, along with balanced growth in marketing, technology, and administrative expenses. Additionally, **global paid memberships** grew by **16%** (from **232.50 million** to **269.60 million**), and **average revenue per membership** increased, further boosting profitability.  **[0001065280-24-000128_nflx-20240331.htm:21]** **[0001065280-24-000128_nflx-20240331.htm:1]** **[0001065280-24-000128_nflx-20240331.htm:23]** **[0001065280-24-000127_ex991_q124.htm:0]** **[NFLX_3380012_7]** 

What factors drove the large jump in Operating Income in Q1 2024?

Netflix's **Net Income nearly doubled** in Q4 2024 primarily because the company experienced strong **revenue growth** and improved **operating performance**. Total revenues increased by **16%**, driven by higher streaming revenues and paid membership growth. This revenue boost, along with an increase in **operating income** and a significant shift in **interest and other expenses** from a loss to a gain, contributed to a much higher pre-tax income. Although the tax provision also increased, it was proportionally smaller compared to the revenue and operating enhancements, resulting in the net income nearly doubling from **$937,838 thousand** in Q4 2023 to **$1,868,607 thousand** in Q4 2024.  **[0001065280-25-000033_ex991_q424.htm:10]** **[0001065280-25-000044_nflx-20241231.htm:46]** 

Why did Net Income nearly double in Q4 2024?

The significant revenue growth in FY 2024 was primarily driven by the **growth in average paying memberships** and **price increases**. Additionally, **hedging gains of $124 million** were included in the streaming revenues, which further contributed to the increase, although the growth was partially offset by unfavorable changes in foreign exchange rates.  **[0001065280-25-000044_nflx-20241231.htm:48]** **[0001065280-25-000044_nflx-20241231.htm:46]** **[0001065280-25-000044_nflx-20241231.htm:90]** 

What contributed to the significant revenue growth in FY 2024?

Netflix's **Interest and Other Income** turned negative in **Q3 2024** primarily due to significant **foreign exchange losses**. Specifically, during Q3 2024, the company experienced **foreign exchange losses of $91 million**, largely driven by a **non-cash loss of $105 million** from the remeasurement of its **€5,170 million Senior Notes**. This loss was only partially offset by gains from the remeasurement of its cash and content liability positions in currencies other than the functional currencies. In contrast, in Q3 2023, Netflix benefited from foreign exchange gains, resulting in a positive reported figure. The reversal from gains to losses resulted in the negative turn in Interest and Other Income for Q3 2024.  **[0001065280-24-000287_nflx-20240930.htm:36]** 

Why did Interest and Other Income turn negative in Q3 2024?

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005c28d9f03bba53cadd40895ddb3e0eda6bb7ececef253b093b78a419473109

Netflix Inc (NFLX)

Financials