What Is Your Appraisal Of Netflix's Operating And Financial Performance Based On The Data
What is your appraisal of Netflix's operating and financial...
What is your appraisal of Netflix'due south operating and fiscal performance based on the data in case Exhibits 1, 2, 5, 6, and 7? What positives and negatives practice you see in Netflix's performance? tin can you help explicate this for me?
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2015 2016 2017 2018 2019 Revenues $6,779.v $viii,830.vii $eleven,692.seven $xv,794.three $20,156.4 Cost of revenues (almost all of which relates to amortization of content assets) iv,591.5 6,257.5 vii,659.vii nine,967.5 12,440.2 Gross profit two, 188.0 2,800.viii iv,033.0 v,826.8 seven,716.2 Operating expenses Applied science and evolution 650.8 780.two 1,052.eight 1,221.viii 1,545.1 Marketing 824.ane 1,097.5 i,278.0 2,369.5 ii,652.5 General and authoritative 407.3 315.vii 863.half dozen 630.three 914.4 Total operating expenses i,882.2 2,421.0 3,194.4 4,221.6 5, 1 12.0 Operating income 305.eight 379.8 838.7 i,605.2 2,604.iii Interest and other income (expense) (163.9) 30.8 (591.v) (378.eighty) (542.0) Income before income taxes 141.nine 260.five 485.3 i,226.5 two,062.2 Provision for (do good from) income taxes 19.2 73.8 (73.half-dozen) fifteen.two 195.3 Net income $ 122.6 $ 186.7 $ 558.9 $ 1,211.2 i,866.nine Net income per share: Bones $ 0.29 $ 0.44 $ 1.29 $ 2.78 $ 4.26 Diluted 0.28 0.43 1.25 2.68 four.13 Weighted average mutual shares outstanding (in millions) Basic 425.ix 428.8 431.nine 435.4 437.8 Diluted 436.5 438.7 446.8 451.two 451.eight
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EXHIBIT two Selected Balance Canvass and Cash Menstruum Data for Netflix, 2015-2019 (in millions) Selected Rest Canvass Data Greenbacks and cash equivatents Current assets Total electric current and nomurrent content assets Total assets Current liabilities Leng-temn debt" Stockholders' equity Greenbacks Period Data Internet cash (used in) provided past operating activities Internet cash provided by (used in) investing activities Net cash provided by (used in) financing 2015 31.8093 5.431.8 7218.eight 10,2029 3,529.six 2.371.4 2,223.4 3 (749.4) (179.two) 2016 $ ane,467.6 5,720.iii fourteen.6810 13,5866 4,586.seven iii,364.iii two,679.8 $(1,474.0} 49.8 2017 South ii,822.8 7,670.0 20.one 12.xx 19,012.? five,466.3 6.4994 3,582.0 S (i,785.9) 34.3 2018 5 3,794.5 9.6944 20. 1 07.5 25, 974.4 6,487.iii 10.3601 5,238.8 $(ii. 680. 5} (339.ane} 2019 five v,018.4 5,178.5 $245045 33,975.? 6,855.seven 14,759.13 seven,582.ii $ {2,887.iii} (387.1} activities ane,640.3 ane,091.iii 3,077.0 4,048.5 4,505.seven
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Exhibit 5 Netfiix'due south Operation by Business Segment, 2015-2019 (in millions, except for average monthly revenues per paying member and percentages) Domestic Streaming Segment 2015 2016 2017 2018 2019 Paid memberships atyear—terminate 43.iv 47.ix 52.8 58.v 61.0 Paid net membership additions 5.6 4.7 4.ix 5.vii 2.6 Average monthly acquirement per paying membership $8.50 $9.21 $x.18 $xi.40 $12.57' Revenues $iv,180.three $five,077.iii $ 6,153.0 $ 7,646.half dozen $ 9,243.0 Cost of Revenues [Notation 1} ii,487.2 ii.8 55.8 3,319.2 4,038.four four,867.3 Marketing costs 313.half dozen 412.ix 603.7 1,025.4 ane,063.0 Contribution profit [Note 2} $i,375.5 $i,712.four 5 2,0785 $ 2,582.ix $ 3,312.half dozen Contribution margin 33% 34% 34% 34% 36% International Streaming Segment Paid memberships at twelvemonth-end 27.4 41.2 57.8 80.viii 106.1 Paid cyberspace membership additions xi.7 fourteen.3 xviii.5 22.9 25.3 Average monthly acquirement per paying membership $seven.48 $vii.81 $8.66 $9.43 Note 3 Revenues $1.953.4 $iii.211.i $ 5,089.two $ 7,782.ane $10.616.2 Cost of Revenues [Note 1} 1,780.4 3,042.7 4,359.6 5,776.0 vii,449.7 Marketing costs 506.four 684.6 832.5 1,344.1 i,589.4 Contribution profit [Note two] $ {333.4} $ (516.2} $ (102.9) $ 662.0 $ 1,577.ane Contribution margin (17)% [161% (2)% 9% 15% Domestic DVD Segment Paid memberships at year—cease iv.8 four.0 3.3 two.7 2.2 Average monthly revenue per paying membership $x.30 $ 10.22 $x.17 $10.19 Note 3 Revenues $ 645.? $ 542.iii $ 450.5 $ 365.6 $ 297.2 Cost of Revenues [Note 1} 323.9 262.7 202.5 153.i 123.2 Marketing costs — — — — — Contribution profit [Note 2} $ 321.eight $ 2 79.5 $ 248.0 $ 212.five $ 174.0 Contribution margin fifty% 52% 55% 58% 59% GlobalTotais Paid memberships at year end 75.half dozen 93.1 117.2 142.0 169.3 Global average monthly revenue per paying membership $8.fifteen $8.61 $9.43 $x.31 $x.82 Revenues $67795 $viii.8 30.7 $11,692.? $xv,794.3 $201564 Operating income 305.eight 379.viii 838.7 1,605.2 ii,604.ii Operating margin five% 4% 7% 10% 13% Netincon'le $122.6 $186.vii $558.ix $12212 31.8610
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Exhibit 6 Netflix's Performance by Geographic Region, 2019 (in millions, except for average monthly revenues per paid subscriber) Iii months ended March 31, June xxx, Sept. xxx, Dec. 31, Full Year 2019 2019 2019 2019 2019 UCAN Streaming Revenue $ 2,257 $ 2,501 $ ii,621 $ 2,672 $10,051.2 Paid Memberships 66.63 66.50 67.11 67.66 67.66 Paid Internet Additions ane.88 -0.13 0.61 0.55 2.91 Average Monthly Acquirement per Paid Subscriber $ 11.45 $ 12.52 $ 13.08 $ 13.22 $ 12.57 EMEA Streaming Revenue $ 1,233 $ 1,319 $ 1,428 $ i,563 $ 5,543.1 Paid Memberships 42.54 44.23 47.36 51.78 51.78 Paid Cyberspace Additions four.72 one.69 3.xiii iv.42 xiii.96 Average Monthly Acquirement per Paid Subscriber $ 10.23 $ 10.13 $ x.twoscore $ ten.51 $ 10.33 LATAM Streaming Revenue $ 630 $ 677 $ 741 $ 746 $ 2,795.four Paid Memberships 27.55 27.89 29.38 31.42 31.42 Paid Internet Additions ane.47 0.34 1.49 2.04 5.34 Average Monthly Acquirement per Paid Subscriber $ 7.84 $ 8.14 $ 8.63 $ 8.18 $ 8.21 APAC Streaming Revenue $ 320 $ 349 $ 382 $ 418 $ ane,469.5 Paid Memberships 12.14 12.94 14.49 16.23 16.23 Paid Net Additions ane.53 0.lxxx 1.54 ane.75 v.63 Boilerplate Monthly Revenue per Paid Subscriber $ 9.37 $ 9.29 $ nine.29 $ 9.07 $ nine.24 Total Streaming Revenue $four,440.0 $four,846.0 $5, 173.0 $5,399.0 $19.859.2 Paid Memberships 148,860 151,510 158,334 167,090 167,090 Paid Cyberspace Additions 9.lx iii.43 6.77 8.76 27.83 Average Monthly Acquirement per Paid Non Not Subscriber reported reported $ xi.xiii $ xi.06 $ 10.82
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Exhibit 7 The Growing Fiscal Strain of Netflix'due south Strategic Emphasis on Producing Original Content In-Firm. 2015-2019 (in millions of dollars) 2019 2018 2017 2016 2015 Streaming content obligations at yr-cease $19.490.1 $192859 $17.694.6 $fourteen.479.5 $103022 Additions to streaming content avails 13,916.vii xiii,043.four nine,805.eight 8,653.3 5,771.6 Additions to DVD content assets Note 1 38.6 53.vii 77.ii 78.0 Amortization of streaming content assets 9.2 16.2 7,532.i 5,197.eight iv,788.five three,405.iv Amortization of DVD content assets 2.7 41.ii 60.vii 79.0 79.iv Net cash used in operating activities {2,887.iii} (2,680.5) (1,785.9) (1,474.0) {749.4} Gain from issuance of debt 4,469.3 3,921.8 iii,020.v ane,000.0 one,500.0 Proceeds from issuance of common stock 72.5 124.5 88.4 37.0 78.0 Outstandng senior notes 14.8910 10360.0 half-dozen,499.4 iii.3643 2371.four
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What Is Your Appraisal Of Netflix's Operating And Financial Performance Based On The Data,
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