Netflix(US:NFLX)2026-01-20 22:45Financial Data and Key Metrics Changes - In 2025, the company achieved 16% revenue growth and approximately 30% operating profit growth, with expanding margins and increased free cash flow [3] - The forecast for 2026 revenue is $51 billion, representing a 14% year-on-year increase [4] Business Line Data and Key Metrics Changes - The ad sales business grew two and a half times in 2025 and is expected to double again in 2026 to about $3 billion [3][4] - The company is focused on improving the core business by enhancing the variety and quality of series and films, as well as expanding into new content categories like video podcasts [4] Market Data and Key Metrics Changes - The company is currently under 10% of TV time in all major markets and has hundreds of millions of households worldwide still to sign up [3] - The company has about 7% of the addressable market in terms of consumer and ad spend, indicating significant growth potential [3] Company Strategy and Development Direction - The company is working on closing the acquisition of Warner Bros. Studios and HBO, viewing it as a strategic accelerant for growth [4] - The focus for 2026 includes improving the core business, enhancing product experience, and growing the ad business [4] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving long-term growth targets based on organic progress and ongoing assessment of opportunities [2] - The competitive landscape is acknowledged as dynamic, with management emphasizing the importance of innovation and adaptation to thrive [5] Other Important Information - The company is expanding its investment in live events and has executed over 200 live events, with plans to expand outside the U.S. [19] - The company is also investing in cloud-based gaming and has seen positive results from its gaming offerings [56] Q&A Session Summary Question: Clarification on long-term growth targets and M&A - Management clarified that long-term goals were based on organic growth and did not include M&A considerations at the time [2] Question: Content amortization growth forecast - Management indicated a strong lineup for 2026, with a smoother slate and higher year-over-year content expense growth expected [10] Question: Engagement and churn relationship - Management noted that total view hours grew 2% year-on-year in the second half of 2025, with branded originals seeing a 9% increase [23] Question: Warner Bros. acquisition impact on pricing - Management stated that there would be no change to their pricing approach due to the acquisition [32] Question: Observations from recent live events - Management acknowledged that while live events are a small portion of total view hours, they have a positive impact on conversation and acquisition [46] Question: Future of vertical video - Management confirmed ongoing testing of vertical video features and plans for broader integration into the mobile experience [59]