Netflix Files Q2 2024 10-Q

TL;DR

**NFLX Q2 10-Q FILED: Financials and operations for period ending June 30, 2024.**

AI Summary

Netflix Inc. filed its 10-Q for the period ending June 30, 2024. The filing covers the second quarter of 2024, detailing financial performance and operational updates. Key financial data and business segments are presented for the periods ending June 30, 2024, and comparative periods.

Why It Matters

This filing provides investors with the latest financial results and operational details for Netflix, crucial for understanding the company's performance and future outlook.

Risk Assessment

Risk Level: medium — 10-Q filings are standard for public companies, but the content within can reveal significant financial or operational risks.

Key Players & Entities

• NETFLIX INC (company) — Filer
• 20240630 (date) — Period of Report
• 20240719 (date) — Filing Date

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. Table of Contents

Filing Documents

• nflx-20240630.htm (10-Q) — 1509KB
• ex311_q224.htm (EX-31.1) — 12KB
• ex312_q224.htm (EX-31.2) — 12KB
• ex313_q224.htm (EX-31.3) — 12KB
• ex321_q224.htm (EX-32.1) — 14KB
• 0001065280-24-000200.txt ( ) — 7871KB
• nflx-20240630.xsd (EX-101.SCH) — 45KB
• nflx-20240630_cal.xml (EX-101.CAL) — 64KB
• nflx-20240630_def.xml (EX-101.DEF) — 196KB
• nflx-20240630_lab.xml (EX-101.LAB) — 578KB
• nflx-20240630_pre.xml (EX-101.PRE) — 419KB
• nflx-20240630_htm.xml (XML) — 1440KB

Financial Information

Part I. Financial Information Item 1. Consolidated Financial Statements Consolidated Statements of Operations 3 Consolidated Statements of Comprehensive Income 4 Consolidated Statements of Cash Flows 5 Consolidated Balance Sheets 6 Consolidated Statements of Stockholders' Equity 7

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements 8 Item 2.

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

Management's Discussion and Analysis of Financial Condition and Results of Operations 23 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 34 Item 4.

Controls and Procedures

Controls and Procedures 35

Other Information

Part II. Other Information Item 1.

Legal Proceedings

Legal Proceedings 35 Item 1A.

Risk Factors

Risk Factors 36 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 36

Other Information

Item 5. Other Information 36 Item 6. Exhibits 36 Exhibit Index 37

Signatures

Signatures 37 2 Table of Contents NETFLIX, INC. Consolidated Statements of Operations (unaudited) (in thousands, except per share data) Three Months Ended Six Months Ended June 30, 2024 June 30, 2023 June 30, 2024 June 30, 2023 Revenues $ 9,559,310 $ 8,187,301 $ 18,929,750 $ 16,348,804 Cost of revenues 5,174,143 4,673,470 10,151,216 9,477,095 Marketing 644,084 627,168 1,298,424 1,182,530 Technology and development 711,254 657,983 1,413,727 1,345,258 General and administrative 426,992 401,497 831,012 802,421 Operating income 2,602,837 1,827,183 5,235,371 3,541,500 Other income (expense): Interest expense ( 167,986 ) ( 174,812 ) ( 341,300 ) ( 349,051 ) Interest and other income (expense) 79,005 26,961 234,364 ( 44,243 ) Income before income taxes 2,513,856 1,679,332 5,128,435 3,148,206 Provision for income taxes ( 366,550 ) ( 191,722 ) ( 648,920 ) ( 355,476 ) Net income $ 2,147,306 $ 1,487,610 $ 4,479,515 $ 2,792,730 Earnings per share: Basic $ 4.99 $ 3.35 $ 10.39 $ 6.28 Diluted $ 4.88 $ 3.29 $ 10.16 $ 6.18 Weighted-average shares of common stock outstanding: Basic 430,065 443,881 431,078 444,559 Diluted 439,739 451,572 440,697 451,990 See accompanying notes to the consolidated financial statements. 3 Table of Contents NETFLIX, INC. Consolidated Statements of Comprehensive Income (unaudited) (in thousands) Three Months Ended Six Months Ended June 30, 2024 June 30, 2023 June 30, 2024 June 30, 2023 Net income $ 2,147,306 $ 1,487,610 $ 4,479,515 $ 2,792,730 Other comprehensive income: Foreign currency translation adjustments ( 75,246 ) 52,429 ( 148,298 ) 78,040 Cash flow hedges: Net unrealized gains 123,733 — 300,337 — Reclassification of net gains included in net income ( 25,722 ) — ( 17,208 ) — Net change, net of income tax expense of $ 29 million, $ 0 , $ 84 million, and $ 0 , respectively 98,011 — 283,129 — Total other comprehensive income 22,765 52,429 134,831 78,040 Comprehensive income $ 2,17

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements (unaudited) 1. Basis of Presentation and Summary of Significant Accounting Policies The accompanying interim consolidated financial statements of Netflix, Inc. and its wholly owned subsidiaries (the "Company") have been prepared in conformity with accounting principles generally accepted in the United States ("U.S.") and are consistent in all material respects with those applied in the Company's Annual Report on Form 10-K for the year ended December 31, 2023 filed with the Securities and Exchange Commission (the "SEC") on January 26, 2024. The preparation of consolidated financial statements in conformity with U.S. generally accepted accounting principles ("GAAP") requires management to make estimates and judgments that affect the amounts reported in the consolidated financial statements and accompanying notes. Significant items subject to such estimates and assumptions include the amortization of content assets and the recognition and measurement of income tax assets and liabilities. The Company bases its estimates on historical experience and on various other assumptions that the Company believes to be reasonable under the circumstances. On a regular basis, the Company evaluates the assumptions, judgments and estimates. Actual results may differ from these estimates. The interim financial information is unaudited, but reflects all normal recurring adjustments that are, in the opinion of management, necessary to fairly present the information set forth herein. The interim consolidated financial statements should be read in conjunction with the audited consolidated financial statements and related notes included in the Company's Annual Report on Form 10-K for the year ended December 31, 2023. Interim results are not necessarily indicative of the results for a full year. The following is provided to update the Company's significant accounting policies previously described in the Company's Annual Report on Form 10-K for

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