Netflix : Current report filing

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549 __________________________________

FORM 8-K

__________________________________

Current Report

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported):

January 17, 2019

__________________________________

NETFLIX, INC.

(Exact name of registrant as specified in its charter)

__________________________________

Delaware

(State or other jurisdiction of incorporation)

001-35727

(Commission File Number)

100 Winchester Circle

Los Gatos, CA

95032

(Address of principal executive offices)

(Zip Code)

[phone]

(Registrant's telephone number, including area code)

(Former name or former address, if changed since last report)

__________________________________

77-0467272

(I.R.S. Employer Identification No.)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

• o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

• o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

• o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

• o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ¨

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

Item 2.02 Results of Operations and Financial Condition.

On January 17, 2019 Netflix, Inc. (the "Company") announced its financial results for the quarter ended December 31, 2018 . The Letter to Shareholders, which is attached hereto as Exhibit 99.1 and is incorporated herein by reference, includes reference to the non-GAAP financial measures of free cash flow and EBITDA. Generally, a non-GAAP financial measure is a numerical measure of a company's performance, financial position, or cash flows that either excludes or includes amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with generally accepted accounting principles in the United States. Management believes that the non-GAAP measures of free cash flow and EBITDA are important liquidity metrics because they measure, during a given period, the amount of cash generated that is available to repay debt obligations, make investments and for certain other activities or the amount of cash used in operations, including investments in global streaming content. However, these non-GAAP measures should be considered in addition to, not as a substitute for or superior to, net income, operating income, diluted earnings per share and net cash provided by operating activities, or other financial measures prepared in accordance with GAAP. Reconciliation to the GAAP equivalent of these non-GAAP measures are contained in tabular form in Exhibit 99.1.

The information in this report shall not be treated as "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, nor shall it be deemed incorporated by reference into any registration statement or other document pursuant to the Securities Act of 1933 or the Securities Exchange Act of 1934, except as expressly stated by specific reference in such filing.

Item 9.01 Financial Statement and Exhibits.

(d) Exhibit

99.1 Letter to Shareholders dated:

January 17, 2019

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

NETFLIX, INC.

Date: January 17, 2019 /s/ Spencer Neumann Spencer Neumann Chief Financial Officer

EXHIBIT INDEX

Exhibit No.

Description of Exhibit

99.1*

*

Letter to Shareholders dated: December 17, 2018

This exhibit is intended to be furnished and shall not be deemed "filed" for purposes of the Securities Exchange Act of 1934.

The Letter to Shareholders will be attached as Exhibit 99.1.

Exhibit 99.1

January 17, 2019

Fellow shareholders,

We grew annual revenue 35% to $16 billion in 2018, and nearly doubled operating profits to $1.6 billion. Fueling this growth was our high member satisfaction, which propelled us to finish 2018 with 139 million paying memberships, up 9 million from quarter start and up 29 million from the beginning of the year.

(in millions except per share data and Streaming Content Obligations)	Q4'17	Q1'18	Q2'18	Q3'18	Q4'18	Q1'19 Forecast
Revenue	$ 3,286	$ 3,701	$ 3,907	$ 3,999	$ 4,187	$ 4,494
Y/Y % Growth	32.6%	40.4%	40.3%	34.0%	27.4%	21.4%
Operating Income	$ 245	$ 447	$ 462	$ 481	$ 216	$ 400
Operating Margin	7.5%	12.1%	11.8%	12.0%	5.2%	8.9%
Net Income	$ 186	$ 290	$ 384	$ 403	$ 134	$ 253
Diluted EPS	$ 0.41	$ 0.64	$ 0.85	$ 0.89	$ 0.30	$ 0.56
Global Streaming Paid Memberships	110.64	118.90	124.35	130.42	139.26	148.16
Y/Y % Growth	24.2%	26.0%	25.6%	25.4%	25.9%	24.6%
Global Streaming Paid Net Additions	6.62	8.26	5.45	6.07	8.84	8.90
Net cash (used in) operating activities	$ (488)	$ (237)	$ (518)	$ (690)	$ (1,235)
Free Cash Flow	$ (524)	$ (287)	$ (559)	$ (859)	$ (1,315)
EBITDA	$ 313	$ 534	$ 563	$ 584	$ 328
Shares (FD)	448.1	450.4	451.6	451.9	451.1
Streaming Content Obligations* ($B)	17.7	17.9	18.4	18.6	19.3
Note: Figures are consolidated, including DVD.
*Corresponds to our total known streaming content obligations as defined in our financial statements and related notes in our most recently filed SEC Form 10-K

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