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Free Research Report as Netflix’s Revenue Surged 32.6% and EPS Rocketed 173%

LONDON, UK / ACCESSWIRE / January 24, 2018 / Active-Investors.com has just released a free earnings report on Netflix, Inc. (NASDAQ: NFLX). If you want access to this report all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=NFLX. The Company reported its fourth quarter and fiscal 2017 operating and financial results on January 22, 2018. The streaming giant achieved its highest quarterly global net additions in its history and reported its first-time full year international profit contribution. Register today and get access to over 1000 Free Research Reports by joining our site below:

www.active-investors.com/registration-sg

Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, Netflix most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:

www.active-investors.com/registration-sg/?symbol=NFLX

Earnings Highlights and Summary

For the quarter ended December 31, 2017, Netflix's revenue surged 32.6% to $3.29 billion compared to $2.48 billion in Q4 2016. The Company's revenue numbers exceeded analysts' estimates of $3.28 billion.

During Q4 2017, Netflix's average paid streaming memberships rose 25% on a y-o-y basis. The Company's global streaming revenue amounted to $3.18 billion, up 35% compared to $2.35 billion in the year ago same period. Netflix's US streaming revenue totaled $1.63 billion in Q4 2017 compared to $1.40 billion in Q4 2016, while International streaming revenue came in at $1.55 billion in the reported quarter versus $948 million in the year earlier comparable quarter.

For Q4 2017, Netflix's operating income was $245 million, with an operating margin of 7.5%, compared to an operating income of $154 million, with an operating margin of 6.2%, in Q4 2016.

In the full fiscal year 2017, Netflix's streaming revenue surged 36% to approximately $11.3 billion on a y-o-y basis. The Company added 24 million new memberships in 2017 compared to 19 million in 2016. In 2017, Netflix's average streaming hours per membership grew 9% on a y-o-y basis.

For Q4 2017, Netflix reported a net income of $185.52 million, or $0.41 per diluted share, compared to earnings of $0.15 per diluted share in Q4 2016. The Company's net income in the reported quarter included a pre-tax $26 million non-cash unrealized loss from F/X remeasurement on Netflix's Eurobond. The Company's earnings were in-line with market estimates of $0.41 per share.

Operating Results

During Q4 2017, Netflix registered global net additions of 8.33 million, the highest quarter in the Company's history, and up 18% versus the year ago corresponding period's record of 7.05 million net additions. The reported numbers exceeded the Company's forecasts of 6.3 million net additions, primarily due to stronger than expected acquisitions fueled by Netflix's original content slate and the ongoing global adoption of internet entertainment.

In the US, Netflix's memberships rose by 2.0 million in Q4 2017 compared to forecasts of 1.25 million, bringing total net additions to 5.3 million in FY17. Domestic contribution profits increased 5% on a y-o-y basis, although contribution margin of 34.4% declined on a y-o-y basis due to marketing spend.

Internationally, Netflix's added 6.36 million memberships in Q4 2017 compared to the guidance of 5.05 million net additions, a new record for quarterly net additions in the International segment. With contribution profits of $227 million and a contribution margin of 4.5% in 2017, the International segment delivered its first full year of positive contribution profit in the Company's history.

Free Cash Flow and Capital Structure

During Q4 2017, Netflix's free cash flow (FCF) amounted to negative $524 million, bringing full year 2017 FCF to negative $2.0 billion, at the lower end of the Company's guidance range of negative $2.0 billion to negative $2.5 billion.

Netflix noted that it is growing faster than expected, which allows the Company to invest more in original content than initially planned. Netflix is forecasting FY 2018 FCF to be around negative $3 billion to $4 billion.

Outlook

For Q1 2018, Netflix is forecasting global net additions of 6.35 million, with 1.45 million net additions expected in the US and 4.90 million internationally. The Company is targeting a full year 2018 operating margin of 10%, up about 300 basis points y-o-y, as in the prior year. With greater than expected member growth, which is expected to result in more revenue, Netflix is planning to spend $7.5 billion - $8.0 billion on content on a P&L basis in 2018.

Stock Performance Snapshot

January 23, 2018 - At Tuesday's closing bell, Netflix's stock advanced 9.98%, ending the trading session at $250.29.

Volume traded for the day: 27.63 million shares, which was above the 3-month average volume of 6.37 million shares.

Stock performance in the last month – up 32.55%; previous three-month period – up 28.91%; past twelve-month period – up 82.17%; and year-to-date – up 30.39%

After yesterday's close, Netflix's market cap was at $108.25 billion.

Price to Earnings (P/E) ratio was at 253.33.

The stock is part of the Services sector, categorized under the CATV Systems industry. This sector was up 0.7% at the end of the session.

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