Netflix (NFLX) Q4 Subs Beat by 2.5M; No Longer Needs External Financing for Day-to-Day Ops
Netflix (NASDAQ: NFLX) reported Q4 EPS of $1.19, $0.19 worse than the analyst estimate of $1.38. Revenue for the quarter came in at $6.64 billion versus the consensus estimate of $6.6 billion.
The company posted global streaming paid net additions of 8.51 million versus an expected 6 million.
"With 8.5m paid net additions in Q4, we crossed the 200m paid memberships mark. For the full year, we added a record 37m paid memberships, achieved $25 billion in annual revenue (+24% year over year) and grew operating profit 76% to $4.6 billion," the company said.
Looking to Q1, the company sees EPS of $2.97 and revenue of $7.129 billion, versus the consensus of $2.10 and $7.02 billion. The company sees global streaming paid net additions of 6 million in Q1.
Netflix said they believe they are very close to being sustainably FCF positive. The company said they believe we no longer have a need to raise external financing for our day-to-day operations.
The company also said as they generate excess cash, they intend to maintain $10B-15B in gross debt and will explore returning cash to shareholders through ongoing stock buybacks, as they did in the past (2007-2011).
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