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8-K - 8-K - NETFLIX INC | a2019reclass8-k.htm |
Exhibit 99.1
Netflix, Inc.
Consolidated Statements of Operations
(unaudited)
(in thousands)
Three Months Ended | Twelve Months Ended | ||||||||||||||||||
March 31, 2016 | June 30, 2016 | September 30, 2016 | December 31, 2016 | December 31, 2016 | |||||||||||||||
As Previously Reported | |||||||||||||||||||
Revenues | $ | 1,957,736 | $ | 2,105,204 | $ | 2,290,188 | $ | 2,477,541 | $ | 8,830,669 | |||||||||
Cost of revenues | 1,369,540 | 1,473,098 | 1,532,844 | 1,654,419 | 6,029,901 | ||||||||||||||
Marketing | 208,010 | 216,029 | 282,043 | 284,996 | 991,078 | ||||||||||||||
Technology and development | 203,508 | 207,300 | 216,099 | 225,191 | 852,098 | ||||||||||||||
General and administrative | 127,225 | 138,407 | 153,166 | 159,001 | 577,799 | ||||||||||||||
Operating income | $ | 49,453 | $ | 70,370 | $ | 106,036 | $ | 153,934 | $ | 379,793 | |||||||||
Reclassifications | |||||||||||||||||||
Revenues | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||
Cost of revenues | 49,041 | 52,299 | 60,924 | 65,297 | 227,561 | ||||||||||||||
Marketing | 23,455 | 24,561 | 28,974 | 29,451 | 106,441 | ||||||||||||||
Technology and development | (16,898 | ) | (17,096 | ) | (18,593 | ) | (19,279 | ) | (71,866 | ) | |||||||||
General and administrative | (55,598 | ) | (59,764 | ) | (71,305 | ) | (75,469 | ) | (262,136 | ) | |||||||||
Operating income | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||
As Revised | |||||||||||||||||||
Revenues | $ | 1,957,736 | $ | 2,105,204 | $ | 2,290,188 | $ | 2,477,541 | $ | 8,830,669 | |||||||||
Cost of revenues | 1,418,581 | 1,525,397 | 1,593,768 | 1,719,716 | 6,257,462 | ||||||||||||||
Marketing | 231,465 | 240,590 | 311,017 | 314,447 | 1,097,519 | ||||||||||||||
Technology and development | 186,610 | 190,204 | 197,506 | 205,912 | 780,232 | ||||||||||||||
General and administrative | 71,627 | 78,643 | 81,861 | 83,532 | 315,663 | ||||||||||||||
Operating income | $ | 49,453 | $ | 70,370 | $ | 106,036 | $ | 153,934 | $ | 379,793 |
1 |
Netflix, Inc.
Consolidated Statements of Operations
(unaudited)
(in thousands)
Three Months Ended | Twelve Months Ended | ||||||||||||||||||
March 31, 2017 | June 30, 2017 | September 30, 2017 | December 31, 2017 | December 31, 2017 | |||||||||||||||
As Previously Reported | |||||||||||||||||||
Revenues | $ | 2,636,635 | $ | 2,785,464 | $ | 2,984,859 | $ | 3,285,755 | $ | 11,692,713 | |||||||||
Cost of revenues | 1,657,024 | 1,902,308 | 1,992,980 | 2,107,354 | 7,659,666 | ||||||||||||||
Marketing | 271,270 | 274,323 | 312,490 | 419,939 | 1,278,022 | ||||||||||||||
Technology and development | 257,108 | 267,083 | 255,236 | 273,351 | 1,052,778 | ||||||||||||||
General and administrative | 194,291 | 213,943 | 215,526 | 239,808 | 863,568 | ||||||||||||||
Operating income | $ | 256,942 | $ | 127,807 | $ | 208,627 | $ | 245,303 | $ | 838,679 | |||||||||
Reclassifications | |||||||||||||||||||
Revenues | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||
Cost of revenues | 83,707 | 89,388 | 93,259 | 106,980 | 373,334 | ||||||||||||||
Marketing | 34,878 | 36,837 | 39,956 | 46,588 | 158,259 | ||||||||||||||
Technology and development | (23,237 | ) | (24,599 | ) | (25,013 | ) | (26,219 | ) | (99,068 | ) | |||||||||
General and administrative | (95,348 | ) | (101,626 | ) | (108,202 | ) | (127,349 | ) | (432,525 | ) | |||||||||
Operating income | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||
As Revised | |||||||||||||||||||
Revenues | $ | 2,636,635 | $ | 2,785,464 | $ | 2,984,859 | $ | 3,285,755 | $ | 11,692,713 | |||||||||
Cost of revenues | 1,740,731 | 1,991,696 | 2,086,239 | 2,214,334 | 8,033,000 | ||||||||||||||
Marketing | 306,148 | 311,160 | 352,446 | 466,527 | 1,436,281 | ||||||||||||||
Technology and development | 233,871 | 242,484 | 230,223 | 247,132 | 953,710 | ||||||||||||||
General and administrative | 98,943 | 112,317 | 107,324 | 112,459 | 431,043 | ||||||||||||||
Operating income | $ | 256,942 | $ | 127,807 | $ | 208,627 | $ | 245,303 | $ | 838,679 |
2 |
Netflix, Inc.
Consolidated Statements of Operations
(unaudited)
(in thousands)
Three Months Ended | Nine Months Ended | ||||||||||||||
March 31, 2018 | June 30, 2018 | September 30, 2018 | September 30, 2018 | ||||||||||||
As Previously Reported | |||||||||||||||
Revenues | $ | 3,700,856 | $ | 3,907,270 | $ | 3,999,374 | $ | 11,607,500 | |||||||
Cost of revenues | 2,196,075 | 2,289,867 | 2,412,346 | 6,898,288 | |||||||||||
Marketing | 479,222 | 526,780 | 435,269 | 1,441,271 | |||||||||||
Technology and development | 300,730 | 317,213 | 327,026 | 944,969 | |||||||||||
General and administrative | 278,251 | 311,197 | 344,065 | 933,513 | |||||||||||
Operating income | $ | 446,578 | $ | 462,213 | $ | 480,668 | $ | 1,389,459 | |||||||
Reclassifications | |||||||||||||||
Revenues | $ | — | $ | — | $ | — | $ | — | |||||||
Cost of revenues | 104,504 | 112,564 | 118,782 | 335,850 | |||||||||||
Marketing | 57,555 | 65,227 | 75,061 | 197,843 | |||||||||||
Technology and development | (18,420 | ) | (18,118 | ) | (18,406 | ) | (54,944 | ) | |||||||
General and administrative | (143,639 | ) | (159,673 | ) | (175,437 | ) | (478,749 | ) | |||||||
Operating income | $ | — | $ | — | $ | — | $ | — | |||||||
As Revised | |||||||||||||||
Revenues | $ | 3,700,856 | $ | 3,907,270 | $ | 3,999,374 | $ | 11,607,500 | |||||||
Cost of revenues | 2,300,579 | 2,402,431 | 2,531,128 | 7,234,138 | |||||||||||
Marketing | 536,777 | 592,007 | 510,330 | 1,639,114 | |||||||||||
Technology and development | 282,310 | 299,095 | 308,620 | 890,025 | |||||||||||
General and administrative | 134,612 | 151,524 | 168,628 | 454,764 | |||||||||||
Operating income | $ | 446,578 | $ | 462,213 | $ | 480,668 | $ | 1,389,459 |
3 |
Netflix, Inc.
Domestic Streaming Segment Results
(unaudited)
(in thousands)
Three Months Ended | Twelve Months Ended | ||||||||||||||||||
March 31, 2016 | June 30, 2016 | September 30, 2016 | December 31, 2016 | December 31, 2016 | |||||||||||||||
As Previously Reported | |||||||||||||||||||
Revenues | $ | 1,161,241 | $ | 1,208,271 | $ | 1,304,333 | $ | 1,403,462 | $ | 5,077,307 | |||||||||
Cost of revenues | 666,546 | 707,106 | 720,658 | 761,479 | 2,855,789 | ||||||||||||||
Marketing | 81,942 | 86,806 | 108,495 | 105,589 | 382,832 | ||||||||||||||
Contribution profit | $ | 412,753 | $ | 414,359 | $ | 475,180 | $ | 536,394 | $ | 1,838,686 | |||||||||
Contribution margin | 35.5 | % | 34.3 | % | 36.4 | % | 38.2 | % | 36.2 | % | |||||||||
Reclassifications | |||||||||||||||||||
Revenues | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||
Cost of revenues | 21,210 | 22,293 | 25,562 | 27,119 | 96,184 | ||||||||||||||
Marketing | 6,632 | 6,945 | 8,192 | 8,327 | 30,096 | ||||||||||||||
Contribution profit | $ | (27,842 | ) | $ | (29,238 | ) | $ | (33,754 | ) | $ | (35,446 | ) | $ | (126,280 | ) | ||||
As Revised | |||||||||||||||||||
Revenues | $ | 1,161,241 | $ | 1,208,271 | $ | 1,304,333 | $ | 1,403,462 | $ | 5,077,307 | |||||||||
Cost of revenues | 687,756 | 729,399 | 746,220 | 788,598 | 2,951,973 | ||||||||||||||
Marketing | 88,574 | 93,751 | 116,687 | 113,916 | 412,928 | ||||||||||||||
Contribution profit | $ | 384,911 | $ | 385,121 | $ | 441,426 | $ | 500,948 | $ | 1,712,406 | |||||||||
Contribution margin | 33.1 | % | 31.9 | % | 33.8 | % | 35.7 | % | 33.7 | % |
Netflix, Inc.
Domestic Streaming Segment Results
(unaudited)
(in thousands)
Three Months Ended | Twelve Months Ended | ||||||||||||||||||
March 31, 2017 | June 30, 2017 | September 30, 2017 | December 31, 2017 | December 31, 2017 | |||||||||||||||
As Previously Reported | |||||||||||||||||||
Revenues | $ | 1,470,042 | $ | 1,505,499 | $ | 1,547,210 | $ | 1,630,274 | $ | 6,153,025 | |||||||||
Cost of revenues | 749,488 | 831,962 | 864,408 | 873,372 | 3,319,230 | ||||||||||||||
Marketing | 115,038 | 113,608 | 128,901 | 195,784 | 553,331 | ||||||||||||||
Contribution profit | $ | 605,516 | $ | 559,929 | $ | 553,901 | $ | 561,118 | $ | 2,280,464 | |||||||||
Contribution margin | 41.2 | % | 37.2 | % | 35.8 | % | 34.4 | % | 37.1 | % | |||||||||
Reclassifications | |||||||||||||||||||
Revenues | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||
Cost of revenues | 34,466 | 36,568 | 37,867 | 42,728 | 151,629 | ||||||||||||||
Marketing | 11,215 | 11,295 | 12,632 | 15,273 | 50,415 | ||||||||||||||
Contribution profit | $ | (45,681 | ) | $ | (47,863 | ) | $ | (50,499 | ) | $ | (58,001 | ) | $ | (202,044 | ) | ||||
As Revised | |||||||||||||||||||
Revenues | $ | 1,470,042 | $ | 1,505,499 | $ | 1,547,210 | $ | 1,630,274 | $ | 6,153,025 | |||||||||
Cost of revenues | 783,954 | 868,530 | 902,275 | 916,100 | 3,470,859 | ||||||||||||||
Marketing | 126,253 | 124,903 | 141,533 | 211,057 | 603,746 | ||||||||||||||
Contribution profit | $ | 559,835 | $ | 512,066 | $ | 503,402 | $ | 503,117 | $ | 2,078,420 | |||||||||
Contribution margin | 38.1 | % | 34.0 | % | 32.5 | % | 30.9 | % | 33.8 | % |
Netflix, Inc.
Domestic Streaming Segment Results
(unaudited)
(in thousands)
Three Months Ended | Nine Months Ended | ||||||||||||||
March 31, 2018 | June 30, 2018 | September 30, 2018 | September 30, 2018 | ||||||||||||
As Previously Reported | |||||||||||||||
Revenues | $ | 1,820,019 | $ | 1,893,222 | $ | 1,937,314 | $ | 5,650,555 | |||||||
Cost of revenues | 894,873 | 925,703 | 991,823 | 2,812,399 | |||||||||||
Marketing | 228,022 | 227,961 | 183,521 | 639,504 | |||||||||||
Contribution profit | $ | 697,124 | $ | 739,558 | $ | 761,970 | $ | 2,198,652 | |||||||
Contribution margin | 38.3 | % | 39.1 | % | 39.3 | % | 38.9 | % | |||||||
Reclassifications | |||||||||||||||
Revenues | $ | — | $ | — | $ | — | $ | — | |||||||
Cost of revenues | 41,607 | 44,292 | 46,650 | 132,549 | |||||||||||
Marketing | 22,697 | 23,337 | 27,074 | 73,108 | |||||||||||
Contribution profit | $ | (64,304 | ) | $ | (67,629 | ) | $ | (73,724 | ) | $ | (205,657 | ) | |||
As Revised | |||||||||||||||
Revenues | $ | 1,820,019 | $ | 1,893,222 | $ | 1,937,314 | $ | 5,650,555 | |||||||
Cost of revenues | 936,480 | 969,995 | 1,038,473 | 2,944,948 | |||||||||||
Marketing | 250,719 | 251,298 | 210,595 | 712,612 | |||||||||||
Contribution profit | $ | 632,820 | $ | 671,929 | $ | 688,246 | $ | 1,992,995 | |||||||
Contribution margin | 34.8 | % | 35.5 | % | 35.5 | % | 35.3 | % |
4 |
Netflix, Inc.
International Streaming Segment Results
(unaudited)
(in thousands)
Three Months Ended | Twelve Months Ended | ||||||||||||||||||
March 31, 2016 | June 30, 2016 | September 30, 2016 | December 31, 2016 | December 31, 2016 | |||||||||||||||
As Previously Reported | |||||||||||||||||||
Revenues | $ | 651,748 | $ | 758,201 | $ | 853,480 | $ | 947,666 | $ | 3,211,095 | |||||||||
Cost of revenues | 629,899 | 698,162 | 748,515 | 834,794 | 2,911,370 | ||||||||||||||
Marketing | 126,068 | 129,223 | 173,548 | 179,407 | 608,246 | ||||||||||||||
Contribution profit (loss) | $ | (104,219 | ) | $ | (69,184 | ) | $ | (68,583 | ) | $ | (66,535 | ) | $ | (308,521 | ) | ||||
Contribution margin | (16.0 | )% | (9.1 | )% | (8.0 | )% | (7.0 | )% | (9.6 | )% | |||||||||
Reclassifications | |||||||||||||||||||
Revenues | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||
Cost of revenues | 27,831 | 30,006 | 35,362 | 38,178 | 131,377 | ||||||||||||||
Marketing | 16,823 | 17,616 | 20,782 | 21,124 | 76,345 | ||||||||||||||
Contribution profit (loss) | $ | (44,654 | ) | $ | (47,622 | ) | $ | (56,144 | ) | $ | (59,302 | ) | $ | (207,722 | ) | ||||
As Revised | |||||||||||||||||||
Revenues | $ | 651,748 | $ | 758,201 | $ | 853,480 | $ | 947,666 | $ | 3,211,095 | |||||||||
Cost of revenues | 657,730 | 728,168 | 783,877 | 872,972 | 3,042,747 | ||||||||||||||
Marketing | 142,891 | 146,839 | 194,330 | 200,531 | 684,591 | ||||||||||||||
Contribution profit (loss) | $ | (148,873 | ) | $ | (116,806 | ) | $ | (124,727 | ) | $ | (125,837 | ) | $ | (516,243 | ) | ||||
Contribution margin | (22.8 | )% | (15.4 | )% | (14.6 | )% | (13.3 | )% | (16.1 | )% |
5 |
Netflix, Inc.
International Streaming Segment Results
(unaudited)
(in thousands)
Three Months Ended | Twelve Months Ended | ||||||||||||||||||
March 31, 2017 | June 30, 2017 | September 30, 2017 | December 31, 2017 | December 31, 2017 | |||||||||||||||
As Previously Reported | |||||||||||||||||||
Revenues | $ | 1,046,199 | $ | 1,165,228 | $ | 1,327,435 | $ | 1,550,329 | $ | 5,089,191 | |||||||||
Cost of revenues | 847,317 | 1,017,612 | 1,081,485 | 1,191,497 | 4,137,911 | ||||||||||||||
Marketing | 156,232 | 160,715 | 183,589 | 224,155 | 724,691 | ||||||||||||||
Contribution profit (loss) | $ | 42,650 | $ | (13,099 | ) | $ | 62,361 | $ | 134,677 | $ | 226,589 | ||||||||
Contribution margin | 4.1 | % | (1.1 | )% | 4.7 | % | 8.7 | % | 4.5 | % | |||||||||
Reclassifications | |||||||||||||||||||
Revenues | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||
Cost of revenues | 49,241 | 52,820 | 55,392 | 64,252 | 221,705 | ||||||||||||||
Marketing | 23,663 | 25,542 | 27,324 | 31,315 | 107,844 | ||||||||||||||
Contribution profit (loss) | $ | (72,904 | ) | $ | (78,362 | ) | $ | (82,716 | ) | $ | (95,567 | ) | $ | (329,549 | ) | ||||
As Revised | |||||||||||||||||||
Revenues | $ | 1,046,199 | $ | 1,165,228 | $ | 1,327,435 | $ | 1,550,329 | $ | 5,089,191 | |||||||||
Cost of revenues | 896,558 | 1,070,432 | 1,136,877 | 1,255,749 | 4,359,616 | ||||||||||||||
Marketing | 179,895 | 186,257 | 210,913 | 255,470 | 832,535 | ||||||||||||||
Contribution profit (loss) | $ | (30,254 | ) | $ | (91,461 | ) | $ | (20,355 | ) | $ | 39,110 | $ | (102,960 | ) | |||||
Contribution margin | (2.9 | )% | (7.8 | )% | (1.5 | )% | 2.5 | % | (2.0 | )% |
6 |
Netflix, Inc.
International Streaming Segment Results
(unaudited)
(in thousands)
Three Months Ended | Nine Months Ended | ||||||||||||||
March 31, 2018 | June 30, 2018 | September 30, 2018 | September 30, 2018 | ||||||||||||
As Previously Reported | |||||||||||||||
Revenues | $ | 1,782,086 | $ | 1,921,144 | $ | 1,973,283 | $ | 5,676,513 | |||||||
Cost of revenues | 1,258,809 | 1,324,240 | 1,383,422 | 3,966,471 | |||||||||||
Marketing | 251,200 | 298,819 | 251,748 | 801,767 | |||||||||||
Contribution profit | $ | 272,077 | $ | 298,085 | $ | 338,113 | $ | 908,275 | |||||||
Contribution margin | 15.3 | % | 15.5 | % | 17.1 | % | 16.0 | % | |||||||
Reclassifications | |||||||||||||||
Revenues | $ | — | $ | — | $ | — | $ | — | |||||||
Cost of revenues | 62,897 | 68,272 | 72,132 | 203,301 | |||||||||||
Marketing | 34,858 | 41,890 | 47,987 | 124,735 | |||||||||||
Contribution profit | $ | (97,755 | ) | $ | (110,162 | ) | $ | (120,119 | ) | $ | (328,036 | ) | |||
As Revised | |||||||||||||||
Revenues | $ | 1,782,086 | $ | 1,921,144 | $ | 1,973,283 | $ | 5,676,513 | |||||||
Cost of revenues | 1,321,706 | 1,392,512 | 1,455,554 | 4,169,772 | |||||||||||
Marketing | 286,058 | 340,709 | 299,735 | 926,502 | |||||||||||
Contribution profit | $ | 174,322 | $ | 187,923 | $ | 217,994 | $ | 580,239 | |||||||
Contribution margin | 9.8 | % | 9.8 | % | 11.0 | % | 10.2 | % |
7 |