Item 2.02 Results of Operations and Financial Condition.
On January 19, 2021, Netflix, Inc. (the "Company") announced its financial
results for the quarter ended December 31, 2020. The Letter to Shareholders,
which is attached hereto as Exhibit 99.1 and is incorporated herein by
reference, includes reference to the non-GAAP financial measure of free cash
flow. Generally, a non-GAAP financial measure is a numerical measure of a
company's performance, financial position, or cash flows that either excludes or
includes amounts that are not normally excluded or included in the most directly
comparable measure calculated and presented in accordance with generally
accepted accounting principles in the United States. Management believes that
the non-GAAP measure of free cash flow is an important liquidity metric because
it measures, during a given period, the amount of cash generated that is
available to repay debt obligations, make investments and for certain other
activities or the amount of cash used in operations, including investments in
global streaming content. However, this non-GAAP measure should be considered in
addition to, not as a substitute for or superior to, net income, operating
income, diluted earnings per share and net cash provided by operating
activities, or other financial measures prepared in accordance with GAAP.
Reconciliation to the GAAP equivalent of this non-GAAP measure is contained in
tabular form in Exhibit 99.1.
Item 9.01 Financial Statement and Exhibits.
(d) Exhibit
99.1 Letter to Shareholders dated: January 19, 2021
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