Netflix(NFLX) - 2025 Q1 - Quarterly Results

Financial Performance - Q1'25 revenue reached $10,543 million, reflecting a 12.5% year-over-year growth, with a forecast of $11,035 million for Q2'25[2] - Operating income for Q1'25 was $3,347 million, up 27% year-over-year, with an operating margin of 31.7%[4] - Net income in Q1'25 was $2,890 million, resulting in a diluted EPS of $6.61, a 25% increase compared to $5.28 in Q1'24[4] - The company expects Q2'25 revenue growth of 15% (+17% F/X neutral) and an operating margin of 33%, a ~6 percentage point improvement year-over-year[6] - The 2025 revenue guidance remains at $43.5 billion to $44.5 billion, with a target operating margin of 29%[7] - Revenue for Q1'25 was $10.54B, up from $9.37B in Q1'24, with net income of $2.89B compared to $2.33B in the prior year[39] - The operating margin for Q1'25 was reported at 31.7%, an increase from 26.7% in Q4'24[32] Cash Flow and Liquidity - In Q1'25, net cash generated by operating activities was $2.8B, an increase from $2.2B in the prior year period, with free cash flow totaling $2.7B compared to $2.1B in Q1'24[26] - The company is forecasting full year 2025 free cash flow of about $8B[26] - Cash and cash equivalents at the end of the period were $7,204,028, down from $7,807,337 at the beginning of the period, indicating a decrease of 7.7%[43] - Netflix's non-GAAP free cash flow for the three months ended March 31, 2025, was $2,660,922, up from $1,378,220 in the same period of 2024, reflecting a significant increase of 93.3%[43] Content and Viewership - In Q1, the company launched its ad tech platform in the US and plans to expand it to other countries in the coming months[3] - The company successfully launched WWE RAW in Q1, which has consistently ranked in the global Top 10 since its debut[10] - The upcoming rematch of Taylor vs. Serrano on July 11 is expected to further elevate the profile of women athletes and enhance viewership[10] - The company has seen significant viewership for its content, with "Adolescence" achieving 124 million views, making it the third most popular English language series ever[8] - The share of TV time in the UK grew to 9.0% in Q1'25, up from 8.0% in Q1'24, with "Adolescence" topping the UK's weekly TV ratings[19] Regional Performance - Revenue growth in the UCAN region for Q1'25 was 9% year-over-year, while EMEA grew by 15%[29] - Revenue from the United States and Canada (UCAN) region for Q1 2024 was $4,224,315, a 17% increase compared to $3,608,645 in Q1 2023[46] - The EMEA region also saw a revenue increase of 17%, reaching $2,958,193 in Q1 2024 compared to $2,517,641 in Q1 2023[46] - Latin America (LATAM) revenue grew by 9% to $1,165,008 in Q1 2024, with a significant constant currency growth of 31%[46] - The Asia-Pacific (APAC) region reported revenues of $1,022,924 in Q1 2024, reflecting a 10% increase year-over-year, with a constant currency growth of 14%[46] Debt and Obligations - As of March 31, 2025, Netflix reported total assets of $52,087,644, a decrease from $53,630,374 as of December 31, 2024[41] - Total current liabilities decreased to $9,718,519 as of March 31, 2025, from $10,755,400 as of December 31, 2024, indicating improved liquidity[41] - The total streaming content obligations amounted to $21,790,643 as of March 31, 2025, down from $23,248,931 as of December 31, 2024[41] - Non-GAAP net debt as of March 31, 2025, is reported at $6,713 million[48] - Total debt as of March 31, 2025, stands at $15,017 million[48] Share Repurchase - The company has $13.6B remaining under its existing share repurchase authorization, having repurchased 3.7M shares for $3.5B in the quarter[26]