2018年Q3_Netflix财报（影视）（英文）-2018.10-19页

报告摘要

Netflix Inc. Summary

Core Content and Financial Highlights

Netflix, Inc. (Symbol: NFLX) reported its financial results for the quarter ended September 30, 2018. The company emphasized the importance of its original programming in driving growth, with streaming revenue increasing by 36% year-over-year. Paid memberships surpassed 130 million, and total memberships reached 137 million. The company also mentioned a $36 million non-cash unrealized gain from FX remeasurement and a $38 million tax benefit impacting earnings per share (EPS).

Key Financial Metrics

Revenue: $3,999 million (Q3'18)
Operating Income: $481 million
Operating Margin: 12.0%
Net Income: $403 million
Diluted EPS: $0.89
Free Cash Flow (FCF): -$859 million (Q3'18)
Streaming Content Obligations: $18.6 billion

Forecast and Variance

For Q4'18, Netflix forecasted 7.6 million paid net additions and 9.4 million total net additions, representing 15% and 13% increases, respectively, compared to Q4'17. The company noted that its operating margin would drop to 5% in Q4, down from 7.5% in the prior year, due to the timing of content and marketing spend and a higher mix of original films. It aims to reduce quarterly variance in future years and target a full year 2018 operating margin of 13%.

Paid Membership Focus

Netflix plans to shift its guidance focus to paid memberships starting in January 2019, and to stop reporting on free trial counts by 2020. This change reflects the company's belief that paid net additions are a more reliable indicator of revenue growth than total net additions, as the latter can be skewed by varying free trial quality. The company also highlighted that free trials may not be a good predictor of future growth in some markets.

Content Strategy

Netflix has three main categories of content:

Licensed non-first-window content (e.g., Shameless)
Licensed original first-window content (e.g., Orange is the New Black)
Owned original first-window content (e.g., Stranger Things)

The company has significantly expanded its self-produced content and now employs hundreds of people in physical production globally. It plans to open a new US production hub in Albuquerque, aiming to invest $1 billion over 10 years and create up to 1,000 jobs per year.

In Q3'18, Netflix launched new seasons of Orange is the New Black, Ozark, and Marvel's Luke Cage, and debuted Insatiable. It also released Maniac, a limited series starring Emma Stone and Jonah Hill. The company expanded its animated adult comedy offerings with Disenchantment and Paradise PD. International originals, such as Sacred Games in India and La Casa de las Flores in Mexico, have also seen significant success.

EU Content Regulations

The European Union is updating its audiovisual rules to require 30% of streaming catalogs to include European works. Netflix is preparing to meet these requirements by evolving its content strategy, focusing on local production to strengthen its offerings without compromising member satisfaction.

Product and Partnerships

Netflix continues to expand partnerships with pay TV providers, ISPs, and mobile operators. In Q3'18, it launched the first mobile bundle in Japan with KDDI and expanded its Verizon partnership to pre-install the app on Android phones. It plans to roll out the Sky UK partnership in Q4'18.

Competition

Netflix competes with linear TV, YouTube, video gaming, and other platforms. While it loses most of the entertainment time, it wins enough to maintain growth. It noted that New Fox is focusing on large simultaneous-viewing sports and news, which are less affected by on-demand viewing. Other linear networks may follow a similar strategy.

Free Cash Flow and Capital Structure

Netflix's free cash flow (FCF) deficit in Q3'18 was -$859 million, compared to -$465 million in the same period the previous year. The company anticipates a full-year FCF deficit of approximately -$3 billion. It explained that the growing mix of self-produced content is the main driver of its working capital needs, as it requires upfront funding for content production.

Non-GAAP Measures

The company referenced non-GAAP financial measures such as free cash flow and EBITDA, noting that they provide important insights into liquidity and cash usage. However, these measures should be considered alongside GAAP financial statements, as they are not a substitute for them. Reconciliation tables are provided in the Letter to Shareholders.

Forward-Looking Statements

The letter contains forward-looking statements, which are subject to risks and uncertainties. These include challenges in member acquisition and retention, competition, consumer behavior, service disruptions, and regulatory changes. A detailed discussion of these risks is available in the company's SEC filings.

Financial Statements

The Consolidated Statements of Operations (unaudited) for Q3'18 show:

Revenues: $3,999,374,000
Cost of Revenues: $2,412,346,000
Marketing: $435,269,000
Technology and Development: $327,026,000
General and Administrative: $344,065,000
Operating Income: $480,668,000
Net Income: $402,835,000
Diluted EPS: $0.89

Additional Information

IR Contact: Spencer Wang (VP, Finance/IR & Corporate Development), 408-809-5360
PR Contact: Richard Siklos (VP, Corporate Communications), 408-540-2629
Investor Letters: References to the company's eight most recent investor letters, including those from 2016 to 2018.

Summary of Key Points

Growth: Streaming revenue grew 36% YoY, with paid memberships surpassing 130 million.
Content Strategy: Focus on original content with a new production hub in Albuquerque.
Financial Metrics: Non-GAAP measures like FCF and EBITDA are highlighted, though GAAP measures remain important.
Forecast: Q4'18 expected to see 7.6 million paid net additions and 9.4 million total net additions.
Regulatory Changes: Adapting to EU content rules by increasing local production.
Partnerships: Expanding with mobile and ISP providers globally.
Competition: Facing challenges from linear TV and tech firms, but maintaining growth through original content.
Disclosure Changes: Shifting focus to paid memberships and discussing FCF in future reports.