Netflix Files 2024 10-K Report

TL;DR

Netflix dropped its 2024 10-K. Full year financials are in.

AI Summary

Netflix Inc. filed its 2024 10-K report on January 27, 2025, detailing its fiscal year ending December 31, 2024. The company, headquartered in Los Gatos, California, operates in the video tape rental and services industry. Key financial data and operational details for the fiscal year are presented in this comprehensive filing.

Why It Matters

This filing provides investors and analysts with a detailed overview of Netflix's financial performance and business operations for the 2024 fiscal year, crucial for understanding the company's current standing and future prospects.

Risk Assessment

Risk Level: low — This is a standard annual financial filing (10-K) and does not inherently present new risks.

Key Numbers

• 2024 — Fiscal Year (The period covered by the 10-K filing.)
• 1231 — Fiscal Year End (Indicates the end date of the reporting period.)
• 20250127 — Filing Date (The date the 10-K was officially submitted to the SEC.)

Key Players & Entities

• NETFLIX INC (company) — Filer
• 121 ALBRIGHT WAY (address) — Business and Mail Address
• LOS GATOS (city) — Business and Mail City
• CA (state) — Business and Mail State
• 95032 (zip_code) — Business and Mail Zip Code
• 770467272 (tax_id) — IRS Number
• DE (state) — State of Incorporation
• 20241231 (date) — Fiscal Year End
• 20250127 (date) — Filing Date
• Greg Peters (person) — Mentioned in relation to plan termination and adoption

FAQ

Key Financial Figures

• $0.001 — ich registered Common stock, par value $0.001 per share NFLX NASDAQ Global Select Mar
• $0 — he registrant's common stock, par value $0.001, outstanding. DOCUMENTS INCORPORA

Filing Documents

• nflx-20241231.htm (10-K) — 1987KB
• ex191_q424.htm (EX-19.1) — 30KB
• ex211-q424.htm (EX-21.1) — 15KB
• ex231_q424.htm (EX-23.1) — 9KB
• ex311_q424.htm (EX-31.1) — 12KB
• ex312_q424.htm (EX-31.2) — 12KB
• ex313_q424.htm (EX-31.3) — 12KB
• ex321_q424.htm (EX-32.1) — 15KB
• nflx-20241231_g1.jpg (GRAPHIC) — 329KB
• 0001065280-25-000044.txt ( ) — 11776KB
• nflx-20241231.xsd (EX-101.SCH) — 59KB
• nflx-20241231_cal.xml (EX-101.CAL) — 109KB
• nflx-20241231_def.xml (EX-101.DEF) — 251KB
• nflx-20241231_lab.xml (EX-101.LAB) — 815KB
• nflx-20241231_pre.xml (EX-101.PRE) — 576KB
• nflx-20241231_htm.xml (XML) — 1977KB

Risk Factors

Item 1A. Risk Factors 4

Unresolved Staff Comments

Item 1B. Unresolved Staff Comments 15

Cybersecurity

Item 1C. Cybersecurity 15

Properties

Item 2. Properties 16

Legal Proceedings

Item 3. Legal Proceedings 16

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 16 PART II

Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities

Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 17

[Reserved]

Item 6. [Reserved] 18

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations 19

Quantitative and Qualitative Disclosures About Market Risk

Item 7A. Quantitative and Qualitative Disclosures About Market Risk 27

Financial Statements and Supplementary Data

Item 8. Financial Statements and Supplementary Data 28

Changes in and Disagreements with Accountants on Accounting and Financial Disclosure

Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 28

Controls and Procedures

Item 9A. Controls and Procedures 29

Other Information

Item 9B. Other Information 31

Disclosure Regarding Foreign Jurisdictions that Prevent Inspections

Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 31 PART III

Directors, Executive Officers and Corporate Governance

Item 10. Directors, Executive Officers and Corporate Governance 32

Executive Compensation

Item 11. Executive Compensation 32

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 32

Certain Relationships and Related Transactions, and Director Independence

Item 13. Certain Relationships and Related Transactions, and Director Independence 32

Principal Accountant Fees and Services

Item 14. Principal Accountant Fees and Services 32 PART IV

Exhibits, Financial Statement Schedules

Item 15. Exhibits, Financial Statement Schedules 33

Form 10-K Summary

Item 16. Form 10-K Summary 33 Table of Contents PART I

Forward-Looking Statements

Forward-Looking Statements This Annual Report on Form 10-K contains forward-looking statements within the meaning of the federal securities laws. These forward-looking statements include, but are not limited to, statements regarding: our core strategy; our ability to improve our content offerings and service; our future financial performance, including expectations regarding revenues, deferred revenue, operating income and margin, net income, expenses, and profitability; liquidity, including the sufficiency of our capital resources, net cash provided by (used in) operating activities, access to financing sources, and free cash flows; capital allocation strategies, including any stock repurchases or repurchase programs; seasonality; stock price volatility; impact of foreign exchange rate fluctuations; expectations regarding hedging activity; impact of interest rate fluctuations; adequacy of existing facilities; future regulatory changes and their impact on our business; intellectual property; cybersecurity; price changes and testing; accounting treatment for changes related to content assets; acquisitions; actions by competitors; membership growth, including impact of content and pricing changes on membership growth; partnerships; advertising; multi-household usage; member viewing patterns; dividends; future contractual obligations, including unknown content obligations and timing of payments; our global content and marketing investments, including investments in original programming, consumer products and live experiences; impact of work stoppages; content amortization; resolutions of tax examinations; tax expense; unrecognized tax benefits; deferred tax assets; resolutions of disputes and other proceedings; our ability to effectively manage change and growth; our company culture; and our ability to attract and retain qualified employees and key personnel. These forward-looking statements are subject to risks and uncertainties that could cause actual results and e

Business

Item 1. Business ABOUT US Netflix, Inc. ("Netflix", "the Company", "registrant", "we", or "us") is one of the world's leading entertainment services with approximately 302 million paid memberships in over 190 countries enjoying TV series, films and games across a wide variety of genres and languages. Members can play, pause and resume watching as much as they want, anytime, anywhere, and can change their plans at any time. Our core strategy is to grow our business globally within the parameters of our operating margin target. We strive to continuously improve our members' experience by offering compelling content that delights them and attracts new members. We aim to offer a range of pricing plans, including our ad-supported subscription plan, to meet a variety of consumer needs. We seek to drive conversation around our content to further enhance member joy, and we are continuously enhancing our user interface to help our members more easily choose content that they will find enjoyable. BUSINESS SEGMENTS We operate as one operating segment. Our revenues are primarily derived from monthly membership fees for services related to streaming content to our members. See Note 12, Segment and Geographic Information , in the accompanying notes to our consolidated financial statements for further detail. COMPETITION The market for entertainment video is intensely competitive and subject to rapid change. We compete with a broad set of activities for consumers' leisure time, including other entertainment video providers, such as linear television, streaming entertainment providers (including those that provide pirated content), video gaming providers, as well as user-generated content, some of which are by professional content creators, and more broadly against other sources of entertainment, such as social media, that our members could choose in their moments of free time. We also compete against entertainment video providers and content producers in obtaining content

Risk Factors

Item 1A. Risk Factors If any of the following risks actually occur, our business, financial condition and results of operations could be harmed. In that case, the trading price of our common stock could decline, and you could lose all or part of your investment. Risks Related to Our Business If our efforts to attract and retain members are not successful, our business will be adversely affected. We must continually add new members both to replace canceled memberships and to grow our business beyond our current membership base. Our ability to continue to attract and retain members will depend in part on our ability to consistently provide our members in countries around the globe with compelling content choices that keep our members engaged with our service, effectively drive conversation around our content and service, as well as provide a quality experience for choosing and enjoying TV series, films and games. Our penetration and growth rates have fluctuated and vary across the jurisdictions where we provide our service. In countries where we have been operating for many years or where we are highly penetrated, our membership growth is slower than in newer or less penetrated countries. Furthermore, the relative service levels, content offerings, pricing and related features of competitors to our service may adversely impact our ability to attract and retain members. Competitors include other entertainment video providers, such as linear television, and streaming entertainment providers (including those that provide pirated content), video gaming providers, as well as user-generated content, some of which are by professional content creators, and more broadly other sources of entertainment, such as social media, that our members could choose in their moments of free time. Members cancel our service for many reasons, including a perception that they do not use the service sufficiently, that they need to cut household expenses, dissatisfaction with content, a p

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View this 10-K filing on SEC EDGAR