Wednesday, January 20, 2021

Netflix 20Q4: better than expected, no more need for fund raising, market cap approaching USD 250b

Netflix 20Q4 results
  • Shareholder letter
  • Presentation
  • Global paying subs 204m, net additions 8.5m
  • ARM USD 11.02 (-0.4%)
  • Revenue USD 6.64b (+21.5%)
  • Operating income USD 954 million (+108%), margin 14.4%
  • Net income USD 542 million (-7.6%)
  • Delta cash USD -183m
  • Cash & equivalents at end USD 8.24b
  • Cash spent on streaming content USD 3.85b (TTM USD 12.5b)
Targets
  • 2021 oper margin 20% (raised from 19%), to grow margin average 3 pp/yr
  • 2021 FCF around break-even (raised from between -1b and break-even)
  • "We believe we are very close to being sustainably FCF positive"
  • "We believe we no longer have a need to raise external financing for our day-to-day operations"
  • To repay 210201 bond maturing out of cash, to maintain $10-15b in gross debt
  • Plans SBB (as in 2007-11)
Viewing stats first 4 weeks
  • The Midnight Sky 72m
  • Over the Moon 43m
  • We Can Be Heroes 53m
  • Holidate 68m
  • The Christmas Chronicles: Part Two 61m
  • Just Another Christmas 26m
  • Barbarians 37m
  • Sweet Home 22m
  • Selena: The Series 25m
  • Alice in Borderland 18m
  • Lupin expected 70m
  • The Queen’s Gambit 62m
Other
  • Currently >500 titles in post-production or launch preparation
  • To provide update on LT stock performance in each Q4 report
  • To roll out Shuffle Play globally 21H1
  • Share price after close +13% to USD 565, market cap USD 249b

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