f6edb30dff9f8a6941ee8920c5cf594285dcd5753bb720cc373c210100cb0d61

| Metric (Unit) | Q4 2022 | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 | Q3 2024 |
|---------------|---------|---------|---------|---------|---------|---------|---------|---------|
| Paid Net Membership Additions (Millions) | 7.66 **[0001065280-23-000034_ex991_q422.htm:0]** | 1.75 **[0001065280-23-000120_nflx-20230331.htm:17]** | 5.9 **[0001065280-23-000197_ex991_q223.htm:0]** | 8.76 **[0001065280-23-000272_ex991_q323.htm:0]** | 13.12 **[0001065280-24-000029_ex991_q423.htm:0]** | 9.33 **[0001065280-24-000127_ex991_q124.htm:0]** | 8.05 **[0001065280-24-000200_nflx-20240630.htm:25]** | 5.07 **[0001065280-24-000286_ex991_q324.htm:0]** |
| Paid Memberships (Millions) | 230.75 **[0001065280-23-000034_ex991_q422.htm:0]** | 232.50 **[0001065280-23-000119_ex991_q123.htm:0]** | 238.39 **[0001065280-23-000198_nflx-20230630.htm:20]** **[0001065280-23-000197_ex991_q223.htm:0]** | 247.153 **[0001065280-23-000272_ex991_q323.htm:0]** | 260.28 **[0001065280-24-000029_ex991_q423.htm:0]** | 269.60 **[0001065280-24-000127_ex991_q124.htm:0]** | 277.65 **[0001065280-24-000199_ex991_q224.htm:0]** | 282.72 **[0001065280-24-000286_ex991_q324.htm:0]** |
| Average Monthly Revenue per Membership (USD) | 11.85 **[0001065280-22-000368_nflx-20220930.htm:20]** | 11.70 **[0001065280-23-000120_nflx-20230331.htm:17]** | 11.55 **[0001065280-23-000198_nflx-20230630.htm:20]** | 11.70 **[0001065280-23-000273_nflx-20230930.htm:22]** | 11.64 **[0001065280-24-000030_nflx-20231231.htm:44]** | 11.79 **[0001065280-24-000128_nflx-20240331.htm:21]** | 11.65 **[0001065280-24-000200_nflx-20240630.htm:25]** | 11.69 **[0001065280-24-000287_nflx-20240930.htm:28]** |

8172f4bfdad0a8b3c563b17a92941154dba53108506c8bfd8e9853e2e4ad4968

| Geographical Segment | Q4 2022 | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 | Q3 2024 |
|----------------------|---------|---------|---------|---------|---------|---------|---------|---------|
| **UCAN (United States and Canada) [Million USD]** | **3,595**  **[0001065280-23-000034_ex991_q422.htm:8]**  | **3,608.6**  **[0001065280-23-000120_nflx-20230331.htm:17]**  | **3,599**  **[0001065280-23-000197_ex991_q223.htm:7]**  | **3,735**  **[0001065280-23-000272_ex991_q323.htm:9]**  | **3,931**  **[0001065280-24-000029_ex991_q423.htm:8]**  | **4,224**  **[0001065280-24-000127_ex991_q124.htm:5]**  | **4,296**  **[0001065280-24-000199_ex991_q224.htm:6]**  | **4,322**  **[0001065280-24-000286_ex991_q324.htm:5]**  |
| **EMEA (Europe, Middle East, and Africa) [Million USD]** | **2,350**  **[0001065280-23-000034_ex991_q422.htm:8]**  | **2,517.6**  **[0001065280-23-000120_nflx-20230331.htm:18]**  | **2,562**  **[0001065280-23-000197_ex991_q223.htm:7]**  | **2,693**  **[0001065280-23-000273_nflx-20230930.htm:6]**  | **2,784**  **[0001065280-24-000029_ex991_q423.htm:8]**  | **2,958**  **[0001065280-24-000127_ex991_q124.htm:5]**  | **3,008**  **[0001065280-24-000199_ex991_q224.htm:6]**  | **3,133**  **[0001065280-24-000286_ex991_q324.htm:5]**  |
| **LATAM (Latin America) [Million USD]** | **1,017**  **[0001065280-23-000034_ex991_q422.htm:8]**  | **1,070.2**  **[0001065280-23-000120_nflx-20230331.htm:18]**  | **1,077**  **[0001065280-23-000197_ex991_q223.htm:7]**  | **1,143**  **[0001065280-23-000272_ex991_q323.htm:9]**  | **1,156**  **[0001065280-24-000029_ex991_q423.htm:8]**  | **1,165**  **[0001065280-24-000127_ex991_q124.htm:5]**  | **1,204**  **[0001065280-24-000199_ex991_q224.htm:6]**  | **1,241**  **[0001065280-24-000286_ex991_q324.htm:5]**  |
| **APAC (Asia-Pacific) [Million USD]** | **857**  **[0001065280-23-000034_ex991_q422.htm:8]**  | **933.5**  **[0001065280-23-000120_nflx-20230331.htm:18]**  | **919**  **[0001065280-23-000197_ex991_q223.htm:7]**  | **948**  **[0001065280-23-000272_ex991_q323.htm:9]**  | **963**  **[0001065280-24-000029_ex991_q423.htm:8]**  | **1,023**  **[0001065280-24-000127_ex991_q124.htm:5]**  | **1,052**  **[0001065280-24-000199_ex991_q224.htm:6]**  | **1,128**  **[0001065280-24-000286_ex991_q324.htm:5]**  |

90e196d21b6363325cb9ece017d235c14f3815e5478c29705fc827f0cb89193f

| Metric [USD Millions] | Q4 2022 | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 | Q3 2024 |
|-----------------------|---------|---------|---------|---------|---------|---------|---------|---------|
| Streaming Revenues    | N/A     | **8,130**  **[0001065280-23-000120_nflx-20230331.htm:17]**  | **8,158**  **[0001065280-23-000198_nflx-20230630.htm:20]**  | **8,519**  **[0001065280-23-000273_nflx-20230930.htm:22]**  | N/A     | **9,370**  **[0001065280-24-000128_nflx-20240331.htm:21]**  | **9,559.31**  **[0001065280-24-000200_nflx-20240630.htm:26]**  | **9,825**  **[0001065280-24-000287_nflx-20240930.htm:28]**  |
| DVD Revenues          | N/A     | **31.5**  **[0001065280-23-000120_nflx-20230331.htm:17]**   | **29**  **[0001065280-23-000198_nflx-20230630.htm:20]**     | **22**  **[0001065280-23-000273_nflx-20230930.htm:22]**     | N/A     | **0**  **[0001065280-24-000128_nflx-20240331.htm:21]**      | **0**  **[0001065280-24-000200_nflx-20240630.htm:25]**        | **0**  **[0001065280-24-000287_nflx-20240930.htm:28]**      |

04055d058ea128bfaefaa434e917495511a48554a50e2861ff7b0551f102971f

- **Strong growth in the ad-supported tier is driving user and revenue growth.** In Q4, the ads plan represented over **55% of sign-ups** across ad countries, with membership on those plans increasing about **30% quarter-over-quarter**. Ads revenue exceeded targets, **doubled year-over-year** last year, and is expected to double again this year.  **[NFLX_3412880_4]**
- **Significant potential for revenue growth in existing markets.** Netflix currently earns only **6% of the revenue opportunity** in the countries and segments it serves, indicating a long runway for increasing market share. The company believes it can progressively increase that share every year by improving content and expanding offerings.  **[NFLX_3412880_11]** **[NFLX_3412880_18]**
- **Upcoming strong content slate expected to drive engagement and justify price increases.** Netflix is releasing returning seasons of its biggest shows ever, such as **"Wednesday," "Stranger Things," and "Squid Game,"** as well as new movies from Oscar winners. This strong slate provides confidence in increasing prices while maintaining engagement.  **[NFLX_3412880_12]**

dfdaff926fd8cf1362bd15e957582306cbf482533df67371d4bbe8f9e723b0e9

- **Challenges in making the economics work for full-season Big League sports could limit Netflix's growth opportunities in sports broadcasting.** Theodore Sarandos noted that "the underlying economics of full-season Big League sports being extremely challenging."  **[NFLX_3412880_6]**  This sentiment was reiterated regarding WWE and other sports content, where he mentioned that "the Big League sports full season economics are very hard to make work."  **[NFLX_3412880_7]**
- **Significant increase in content and investment spending may pressure margins if growth expectations are not met.** Spencer Neumann stated that Netflix is increasing its cash content spend from $17 billion to **$18 billion** for 2025.  **[NFLX_3412880_18]**  Additionally, the company expects expense growth of about **9%**, investing heavily in product, engineering, marketing, and sales to build out ads, live, and games capabilities.  **[NFLX_3412880_19]**  If these investments do not yield the anticipated returns, it could impact profitability.
- **Exposure to foreign exchange risk due to a high proportion of revenue from non-U.S. dollar currencies.** Spencer Neumann highlighted that approximately **60%** of Netflix's revenue is in non-U.S. dollar currencies, and the company hedges roughly 50% on a rolling forward 12-month basis.  **[NFLX_3412880_3]**  This partial hedging strategy might not fully mitigate the impact of currency fluctuations on financial results.

1c596878971b104ffdd941d62401781df417b031eb1b8daa205244c913eab027

9e3d82d487e8d24ad0b86bc348feb503955a5c2cc558f65bcddd9dfd6f86bb28

1. Given that your share of viewership in your biggest countries is still less than 10% of TV time, what specific strategies are you implementing to significantly increase this share, and how do you plan to manage the risk of overextending with initiatives like ads, games, and live events?
2. You mentioned no changes to your capital allocation policy despite recent tactical moves like upsizing your revolver to $3 billion and raising $1.8 billion of investment-grade debt. Can you elaborate on how these actions align with your priorities of profitable growth and balance sheet flexibility, and under what circumstances might you consider altering your capital allocation, such as initiating a dividend or increasing share repurchases?
3. The first half of this year saw a lumpier content lineup due to the work stoppage impacting both series and films, particularly in UCAN. How confident are you that your content slate will fully recover by 2025, and what measures are you taking to mitigate any potential lingering effects on content delivery and subscriber engagement?
4. With the expansion of your advertising-supported tier, you've noted significant progress in membership growth but acknowledge substantial work ahead to improve monetization and advertiser capabilities. What are the major challenges you face in scaling your ad business, and how do you plan to address them to ensure it becomes a significant revenue contributor in the coming years?
5. As competitors leverage bundled offerings to drive growth, how do you assess the risk of consumers gravitating towards these bundles over standalone services like yours, and what strategies are you employing to maintain competitiveness and prevent potential subscriber churn in light of this industry trend?

7e1550dd92e04a1d85a050f2370f600e64d236f60869b88ca2edfcc67bdde3b2

Adjustments for Non-Cash Items

Stock-Based Compensation

Changes in Working Capital

Capital Expenditures (CapEx)

Proceeds from Debt

Repayments of Debt

Share Repurchases

d0b6935efaad00d5e99dd69183504226977bd54bd14ce443218166134f0ea143

- Traditional providers of entertainment video, including broadcasters and cable network operators  **[0001065280-24-000030_nflx-20231231.htm:11]** .
- Internet-based e-commerce or entertainment video providers  **[0001065280-24-000030_nflx-20231231.htm:11]** .
- Streaming entertainment providers, including those that provide pirated content  **[0001065280-24-000030_nflx-20231231.htm:10]** .
- Video gaming providers  **[0001065280-24-000030_nflx-20231231.htm:10]** .
- User-generated content platforms  **[0001065280-24-000030_nflx-20231231.htm:10]** .

e0108d55fc177c8fe60d2d149242cc2e99597f556dcfbfaca0ef06cbc1f49896

Netflix’s ad-supported tier grabbed 55% of Q4 sign-ups in ad countries and membership grew 30% QoQ. Ad revenue doubled YoY and is set to double again. With only 6% of its addressable revenue tapped, there’s still significant upside potential.

933ffd7d9b021db77b6e92cf1cd79cf274a28cc1a05ba5317ac844db78f04bf7

5196f157496c380ce2256fffa3fb431c5c4d41437fb568123eabe73a63e82305

### Q3 2024 Earnings Call
- **Issued Period**: Q3 2024
- **Guided Period**: FY 2025
- **Guidance**:
  1. **Revenue Growth**: Expected to deliver **15% revenue growth** in 2025  **[NFLX_3402973_0]** .
  2. **Operating Margin Improvement**: Anticipates a **6 percentage point improvement** in operating margin  **[NFLX_3402973_0]** .
  3. **Revenue**: Expects **$43 billion to $44 billion** in revenue for 2025, representing about **11% to 13% growth** from 2024  **[NFLX_3402973_2]** .
  4. **Membership Growth**: Majority of growth expected from membership growth  **[NFLX_3402973_2]** .
  5. **Average Revenue per Membership (ARM)**: Growth expected from plan evolution, pricing, and ads revenue  **[NFLX_3402973_2]** .
  6. **Ads Revenue**: Expected to roughly double year-over-year in 2025  **[NFLX_3402973_8]** .

### Q2 2024 Earnings Call
- **Issued Period**: Q2 2024
- **Guided Period**: FY 2024
- **Guidance**:
  1. **Operating Income Margin**: Targeting a **26% full-year operating income margin**  **[NFLX_3393448_2]** .
  2. **Total Expenses**: Expects **total expenses north of $28 billion** for the year  **[NFLX_3393448_8]** .
  3. **Revenue Growth**: Reported **17% revenue growth** for the quarter  **[NFLX_3393448_0]** .
  4. **Margin Improvement**: Anticipates **5 percentage points of margin improvement** for the year  **[NFLX_3393448_8]** .
  5. **Ads Business**: Scaling ads business with significant impact expected over a multiyear trajectory  **[NFLX_3393448_4]** .
  6. **Ads Member Base**: On track to achieve critical-scale goals for all ads countries by 2025  **[NFLX_3393448_5]** .

### Q1 2024 Earnings Call
- **Issued Period**: Q1 2024
- **Guided Period**: FY 2024 and FY 2025
- **Guidance**:
  1. **Revenue Growth**: Guiding for **healthy double-digit revenue growth** for 2024  **[NFLX_3380012_6]** .
  2. **Operating Income Margin**: Targeting an operating income margin of **25% for 2024**  **[NFLX_3380012_8]** .
  3. **Free Cash Flow**: Plans to continue growing free cash flow  **[NFLX_3380012_26]** .
  4. **Annual Revenue Guidance**: Adding new annual guidance on revenue range  **[NFLX_3380012_1]** .
  5. **Subscriber Reporting**: Shifting focus to other metrics like revenue, operating income, etc.  **[NFLX_3380012_1]** .

### Q4 2023 Earnings Call
- **Issued Period**: Q4 2023
- **Guided Period**: FY 2024
- **Guidance**:
  1. **Revenue Growth**: Expects **healthy double-digit FX-neutral revenue growth** for 2024  **[NFLX_3370598_3]** .
  2. **Member Growth**: Continued member growth anticipated  **[NFLX_3370598_3]** .
  3. **Ads Business**: Some contribution expected from scaling ads business  **[NFLX_3370598_3]** .
  4. **Pricing Strategy**: No change to pricing philosophy  **[NFLX_3370598_3]** .
  5. **Operating Margin**: Focused on improving revenue and operating margin  **[NFLX_3370598_27]** .

5f45e84c0455a6a89e174ac8784738f90a41cc0ad4446d76273a615aa7948aed

Paid Net Membership Additions (Millions)

Paid Memberships (Millions)

Average Monthly Revenue per Membership (USD)

35e480bca375a58bfae366107dbdce2c2fbe6770933460587880aac9c10d9406

23794d91c53ae875c8e247d72561e35d9d06ee07c70c9e0dbcc977a6d161504a

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

43633cef25a768b89926d605814640cdd4a7dee5fbcc9c419ca97c386658bd34

**Annual guidance for FY 2025:**
- **Revenue Growth**: 12% to 14%  **[NFLX_3412880_19]** **[NFLX_3412880_4]**  (lowered from 15%  **[NFLX_3402973_0]** )  
- **Expense Growth**: ~9%  **[NFLX_3412880_19]** **[NFLX_3412880_4]**  (no prior guidance)  
- **Content Amortization Growth**: High single digits  **[NFLX_3412880_19]** **[NFLX_3412880_4]**  (no prior guidance)  
- **Content Cash Spend**: ~$18 billion  **[NFLX_3412880_19]** **[NFLX_3412880_4]**  (no prior guidance)  
- **Ads Revenue Growth**: expected to double year-over-year  **[NFLX_3412880_19]** **[NFLX_3412880_4]**  (no change from prior guidance  **[NFLX_3402973_8]** )  

b61e52beb61dc4affe7693a9d41ef7c2830bec589acaacf60d6fbd7fce36afcf

| Name           | Position                                    | Start Date       | Short Bio                                                                                                                                                                                                 |
|----------------|---------------------------------------------|------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Reed Hastings  | Executive Chairman of the Board             | 1997             | Reed Hastings is the co-founder of Netflix and served as co-CEO and President from 1999 until January 2023. He transitioned to Executive Chairman in January 2023 and has been a director and chairperson since 1997  **[0001193125-24-100913_d521836ddef14a.htm:8]** **[0001193125-24-100913_d521836ddef14a.htm:27]** **[0001193125-23-110513_d405125ddef14a.htm:22]** .                  |
| David Hyman    | Chief Legal Officer and Secretary           | 2002             | David Hyman is responsible for all legal and public policy matters at Netflix. Before joining Netflix, he practiced law at Morrison & Foerster and Arent Fox. He holds a JD and Bachelor's degrees from the University of Virginia  **[0001193125-24-100913_d521836ddef14a.htm:27]** **[0001193125-23-110513_d405125ddef14a.htm:27]** .       |
| Spencer Neumann| Chief Financial Officer                     | January 2019     | Spencer Neumann has been the CFO of Netflix since January 2019. He has extensive experience in finance and strategy, having worked at The Walt Disney Company and private equity firms. He holds a B.A. and an M.B.A. from Harvard University  **[0001193125-24-100913_d521836ddef14a.htm:27]** **[0001193125-23-110513_d405125ddef14a.htm:27]** . |
| Greg Peters    | co-Chief Executive Officer and President    | January 2023     | Greg Peters has been with Netflix since 2008 and became co-CEO and President in January 2023. He has held roles such as COO and Chief Product Officer and was appointed to the Board of Directors in January 2023  **[0001193125-24-100913_d521836ddef14a.htm:0]** **[0001193125-24-100913_d521836ddef14a.htm:9]** **[0001193125-24-100913_d521836ddef14a.htm:3]** .                       |
| Ted Sarandos   | co-Chief Executive Officer and President    | July 2020        | Ted Sarandos joined Netflix in 2000 as Chief Content Officer and became co-CEO in July 2020. He played a key role in Netflix's original content production, starting with series like "House of Cards"  **[0001193125-23-110513_d405125ddef14a.htm:9]** .                                        |

7534ad37460f6cac7aa3e68e02d1d67105d325fce1e4531753c52ee942b7b7b8

| Program Details          | Program 1                   | Program 2                   |
|--------------------------|-----------------------------|-----------------------------|
| Approval Date            | March 2021  **[0001065280-24-000287_nflx-20240930.htm:21]** **[0001065280-24-000287_nflx-20240930.htm:38]** **[0001065280-24-000287_nflx-20240930.htm:52]**         | September 2023  **[0001065280-24-000287_nflx-20240930.htm:21]** **[0001065280-24-000287_nflx-20240930.htm:38]** **[0001065280-24-000287_nflx-20240930.htm:52]**     |
| End Date/Duration        | No expiration date  **[0001065280-24-000287_nflx-20240930.htm:21]** **[0001065280-24-000287_nflx-20240930.htm:38]** **[0001065280-24-000287_nflx-20240930.htm:52]** | No expiration date  **[0001065280-24-000287_nflx-20240930.htm:21]** **[0001065280-24-000287_nflx-20240930.htm:38]** **[0001065280-24-000287_nflx-20240930.htm:52]** |
| Total additional amount  | $5 billion  **[0001065280-24-000287_nflx-20240930.htm:21]** **[0001065280-24-000287_nflx-20240930.htm:38]** **[0001065280-24-000287_nflx-20240930.htm:52]**         | $10 billion  **[0001065280-24-000287_nflx-20240930.htm:21]** **[0001065280-24-000287_nflx-20240930.htm:38]** **[0001065280-24-000287_nflx-20240930.htm:52]**        |
| Remaining authorization  | $0 (allocated)              | **$3.1 billion**  **[0001065280-24-000287_nflx-20240930.htm:21]** **[0001065280-24-000287_nflx-20240930.htm:38]** **[0001065280-24-000287_nflx-20240930.htm:52]**   |
| Details                  | General repurchase program  | General repurchase program  |

**Note:** The total remaining authorization amount for all programs combined is **$3.1 billion** as of September 30, 2024. This amount is allocated to the newest program first, as per the instructions.  **[0001065280-24-000287_nflx-20240930.htm:21]** **[0001065280-24-000287_nflx-20240930.htm:38]** **[0001065280-24-000287_nflx-20240930.htm:52]**

d75691a7b10d438dbd7f4eef2f055d4165047d0a0b9912bb942ce6c7b0dd949e

| Name              | Start Date | End Date | Reason for Change |
|-------------------|------------|----------|-------------------|
| Ernst & Young LLP | 2012  **[0001065280-25-000044_nflx-20241231.htm:79]**    | Present  | Current auditor   |

d57a62bc0faed4fe52ae2c4f130523227688995a7c80c64d577468bc0245fb71

4d75b52cdabbb5603829912f46f813d6a320571cb3ffcfc6191e45a5ea456e53

bb49e8a3ff89b2c1bd7f4692599ba0c8f2847124e4e281b118883ba92ca59c2a

- Total Revenue: $10.246 billion (+16% YoY)  **[0001065280-24-000030_nflx-20231231.htm:77]** **[0001065280-25-000033_ex991_q424.htm:10]**   
- Operating Income (EBIT): $2.273 billion (+52% YoY)  **[0001065280-24-000030_nflx-20231231.htm:77]** **[0001065280-25-000033_ex991_q424.htm:10]**   
- Net Income: **$1.869 billion (+99% YoY)**  **[0001065280-24-000030_nflx-20231231.htm:77]** **[0001065280-25-000033_ex991_q424.htm:10]**   
- EPS (Basic): 4.37 (+101% YoY)  **[0001065280-24-000030_nflx-20231231.htm:77]** **[0001065280-25-000033_ex991_q424.htm:10]**   
- United States & Canada Revenue: $4.517 billion (+15% YoY)  **[0001065280-24-000030_nflx-20231231.htm:45]** **[0001065280-25-000044_nflx-20241231.htm:90]**   
- EMEA Revenue: $3.288 billion (+18% YoY)  **[0001065280-24-000030_nflx-20231231.htm:86]** **[0001065280-25-000044_nflx-20241231.htm:90]**   
- Latin America Revenue: $1.230 billion (+6% YoY)  **[0001065280-24-000030_nflx-20231231.htm:86]** **[0001065280-25-000044_nflx-20241231.htm:90]**   
- Asia-Pacific Revenue: **$1.212 billion (+26% YoY)**  **[0001065280-24-000030_nflx-20231231.htm:47]** **[0001065280-25-000044_nflx-20241231.htm:91]**   

2610652f131fa4527fda89c07df47b8ced9e0c10b7cef7867fc8cbbc387d7cc3

Netflix, Inc. is a global entertainment company that provides streaming services to customers in over 190 countries. The company offers a wide variety of TV series, films, and games across multiple genres and languages, allowing members to watch content anytime, anywhere. Netflix focuses on delivering compelling content through both licensed agreements and original productions to attract and retain its growing membership base.

1. **Streaming Services** - Offers a subscription-based platform for on-demand streaming of TV series, films, and games. Members can access content across various devices and enjoy features like pausing and resuming playback at their convenience.  **[0001065280-24-000030_nflx-20231231.htm:44]** **[0001065280-24-000287_nflx-20240930.htm:27]** **[0001065280-24-000030_nflx-20231231.htm:4]** **[0001065280-23-000035_nflx-20221231.htm:4]** 

2. **DVD-by-Mail (Discontinued)** - Previously provided physical DVDs to customers through a mail-based rental service. This segment was discontinued in September 2023 after years of declining contribution to the business.  **[0001065280-24-000030_nflx-20231231.htm:44]** **[0001065280-24-000287_nflx-20240930.htm:28]**

9b5e9292870ba3ddd6904c902c17d4a947bef582db1c82bb1e2f349288469d61

8a3654e5df8f99d923ab95bd1edaa301ee5352326708362c45c7b897990d6c0e

| Year  | Amount Due (in millions) | Debt Type                     | Interest Rate | % of Total Debt                     |
|-------|---------------------------|-------------------------------|---------------|--------------------------------------|
| 2025  | $1,787 **[0001065280-25-000044_nflx-20241231.htm:97]**           | 5.875%, 3.000%, 3.625% Notes | 5.875%, 3.000%, 3.625% **[0001065280-25-000044_nflx-20241231.htm:97]** | 11.5% = (1,787 / 15,582.8) * 100 **[0001065280-25-000044_nflx-20241231.htm:53]** **[0001065280-25-000044_nflx-20241231.htm:97]** |
| 2026  | $1,000 **[0001065280-25-000044_nflx-20241231.htm:97]**           | 4.375% Senior Notes          | 4.375% **[0001065280-25-000044_nflx-20241231.htm:97]** | 6.4% = (1,000 / 15,582.8) * 100 **[0001065280-25-000044_nflx-20241231.htm:53]** **[0001065280-25-000044_nflx-20241231.htm:97]** |
| 2027  | $1,346 **[0001065280-25-000044_nflx-20241231.htm:97]**           | 3.625% Senior Notes          | 3.625% **[0001065280-25-000044_nflx-20241231.htm:97]** | 8.6% = (1,346 / 15,582.8) * 100 **[0001065280-25-000044_nflx-20241231.htm:53]** **[0001065280-25-000044_nflx-20241231.htm:97]** |
| 2028  | $3,500 **[0001065280-25-000044_nflx-20241231.htm:97]**           | 4.875%, 5.875% Notes         | 4.875%, 5.875% **[0001065280-25-000044_nflx-20241231.htm:97]** | 22.5% = (3,500 / 15,582.8) * 100 **[0001065280-25-000044_nflx-20241231.htm:53]** **[0001065280-25-000044_nflx-20241231.htm:97]** |
| 2029  | $3,879 **[0001065280-25-000044_nflx-20241231.htm:97]**           | 4.625%, 6.375%, 3.875%, 5.375% Notes | 4.625%, 6.375%, 3.875%, 5.375% **[0001065280-25-000044_nflx-20241231.htm:97]** | 24.9% = (3,879 / 15,582.8) * 100 **[0001065280-25-000044_nflx-20241231.htm:53]** **[0001065280-25-000044_nflx-20241231.htm:97]** |
| 2030  | $2,139 **[0001065280-25-000044_nflx-20241231.htm:97]**           | 3.625%, 4.875% Notes         | 3.625%, 4.875% **[0001065280-25-000044_nflx-20241231.htm:97]** | 13.7% = (2,139 / 15,582.8) * 100 **[0001065280-25-000044_nflx-20241231.htm:53]** **[0001065280-25-000044_nflx-20241231.htm:97]** |
| 2034  | $1,000 **[0001065280-25-000044_nflx-20241231.htm:97]**           | 4.900% Senior Notes          | 4.900% **[0001065280-25-000044_nflx-20241231.htm:97]** | 6.4% = (1,000 / 15,582.8) * 100 **[0001065280-25-000044_nflx-20241231.htm:53]** **[0001065280-25-000044_nflx-20241231.htm:97]** |
| 2054  | $800 **[0001065280-25-000044_nflx-20241231.htm:97]**             | 5.400% Senior Notes          | 5.400% **[0001065280-25-000044_nflx-20241231.htm:97]** | 5.1% = (800 / 15,582.8) * 100 **[0001065280-25-000044_nflx-20241231.htm:53]** **[0001065280-25-000044_nflx-20241231.htm:97]** |

090d3707836da621bf64c32cd2da3f6e5636e995cf29ade1baaaa0e3fa419a60

572902ee9a858ca92b0c5801ea41778cfd00906e40fed69ee1bb53ffb624bc8d

- **Netflix's engagement has been impacted by its paid sharing initiative, resulting in fewer households using the same account, and relying on these users to spin off and subscribe may pose a risk to growth.**  **[NFLX_3370598_16]**
- **Netflix's original movies, despite outperforming licensed titles in terms of viewers and viewed hours, may not have the same cultural impact as its TV series, indicating potential challenges in its film strategy.**  **[NFLX_3370598_12]**
- **The ads business, although growing, is not expected to be a primary driver of revenue in 2024 and will require years to materially impact the overall business, potentially delaying anticipated revenue boosts from this segment.**  **[NFLX_3370598_8]** **[NFLX_3370598_3]**

2d29d5d46fc93330ac6b99b22016acd76fad94e7f21757453e2579225f71f00a

- **Netflix anticipates revenue growth deceleration for the full year to 13%–15%, down from 15%–16% growth in the first and second quarters.**  **[NFLX_3380012_5]** **[NFLX_3380012_6]**
- **The crackdown on password sharing will lead to a loss of viewing hours, negatively impacting engagement metrics in upcoming reports.**  **[NFLX_3380012_22]** **[NFLX_3380012_9]**
- **Monetization of the ad-supported tier is lagging behind inventory growth, causing under-monetization and a drag on average revenue per member (ARM).**  **[NFLX_3380012_10]** **[NFLX_3380012_12]** **[NFLX_3380012_7]**

0ad4ba6663379bed483702ec14e465108734ff41d1ab46e6354b56973fa85d47

- **Netflix is achieving healthy revenue growth and expanding profit margins**, targeting a **25% margin in 2024**, up from **21% in 2023**.  **[NFLX_3380012_8]** **[NFLX_3380012_6]**  This demonstrates their commitment to grow margins each year and shows a positive financial trajectory.
- **Strong content slate leading to high engagement**, with **#1 movies and series** for multiple weeks, even in a competitive space.  **[NFLX_3380012_21]** **[NFLX_3380012_3]**  This highlights Netflix's ability to attract and retain subscribers through compelling content.
- **Rapid growth in their ad-supported tier**, with a **65% quarter-over-quarter increase** in user base.  **[NFLX_3380012_10]** **[NFLX_3380012_22]**  This expansion into advertising represents a significant new revenue stream with potential for future growth.

e50500dd9c359530f6eab3687f1a4f3b062d88f3c147c933caba3ee158cfbe4f

- **Advertisers are dissatisfied with Netflix's current advertising features, expressing that they "want us to have all those features in place today"**.  **[NFLX_3393448_7]**  Netflix acknowledges that "**we've got years of work ahead of us**" to build these features, which could delay ad revenue growth.  **[NFLX_3393448_7]**
- **The ads business is growing but "off a relatively small base" and is not expected to be a "primary contributor" to revenue in '24 or '25, only becoming "more meaningful" in '26 and beyond**.  **[NFLX_3393448_4]**  This delayed impact could hinder near-term revenue growth from advertising.
- **Netflix's gaming initiative has yet to make a "material impact on the business," with engagement "still quite small"**.  **[NFLX_3393448_19]**  Scaling this segment to materially affect the business will require significant time and investment.

173c67276e2969d14dbc76217cc1e17fb66956cc55a41121d23048b3fb5d395e

- **Netflix expects double-digit FX-neutral revenue growth in 2024**, driven by continued member growth, pricing strategy, and scaling of the ads business.  **[NFLX_3370598_7]**
- **Planned content spend of up to $17 billion in cash content spend** in 2024 to deliver more high-quality original films and series, attracting enormous audiences and enhancing engagement.  **[NFLX_3370598_23]** **[NFLX_3370598_24]**
- Rapid growth in Netflix's ads business with **70% quarter-over-quarter growth**, now at **23 million monthly active users**, positioning to capture a share of the **$180 billion ad spend** shifting from linear to streaming.  **[NFLX_3370598_19]**

3f197a6c08f3ac2d62bc7aa341a53e2a6e591e52ffe6b1217ee493e136dadccc

- **Heavy Investment in New Initiatives with Delayed Revenue Impact**: Netflix is investing significantly in new ventures such as games, live events, and advertising, but these initiatives take time to become material contributors to revenue. For example, ads revenue is **"roughly doubling revenue each year, but it's off a small base"** and will only become significant **"over the next several years"**  **[NFLX_3402973_1]** ,  **[NFLX_3402973_8]** .
- **Slowing Engagement Growth**: Total hours watched on Netflix were up only **roughly 1%** in the first half of the year compared to the same period last year, indicating a potential slowdown in user engagement growth  **[NFLX_3402973_11]** .
- **Competitive Pressures and Market Saturation**: In Netflix's biggest countries, their share of viewership is still less than **10% of TV time**, and the company faces competition from traditional TV bundles and platforms like YouTube  **[NFLX_3402973_21]** ,  **[NFLX_3402973_18]** . Additionally, competitors are using bundles to find growth, which could challenge Netflix's market position  **[NFLX_3402973_20]** .

4b621e60e14601f1ba94b1943235094866448324607bfe1b9e7e25e4f52960a7

- **Strong Financial Performance with Increased Revenue and Margins**: Netflix reported **17% revenue growth** in Q2 2024 and margins that were up **5 percentage points year-over-year**. This strong performance was driven by robust member growth across all regions, healthy retention, and effective translation of service improvements into business value.  **[NFLX_3393448_0]** **[NFLX_3393448_2]**
- **Robust and Diverse Content Slate Driving Global Engagement**: Netflix's extensive and diverse content offerings, including upcoming seasons of popular series like **"Squid Game"**, **"Emily in Paris"**, **"Stranger Things"**, and new titles like **"The Perfect Couple"** and **"A Hundred Years of Solitude"**, are expected to thrill both local and global audiences. Their strategy of super-serving local audiences while creating global hits demonstrates their efficiency and strengthens their competitive advantage.  **[NFLX_3393448_1]** **[NFLX_3393448_21]** **[NFLX_3393448_22]**
- **Expansion into Advertising and Gaming as New Revenue Streams**: Netflix is making significant progress in scaling its advertising business, aiming to achieve critical-scale goals in all ad-supported countries by **2025**, and is investing in building its own ad server to unlock innovations like better targeting and measurement. Additionally, their gaming initiative has seen success, with engagement tripling in **2023** and aggressive growth targets set for **2025** and **2026**, potentially leading to a material impact on the business.  **[NFLX_3393448_19]** **[NFLX_3393448_5]** **[NFLX_3393448_4]**

a2ba70ec5e4ecf6b3d27a946477711ad1373e4a20a7d023a6cf98830e0797967

Netflix Inc (NFLX)

Financials