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