Netflix Inc. (NASDAQ:NFLX)Date Published: 8-02-2016
Netflix Inc. (NASDAQ:NFLX) can be summed up in two easy charts.
While the narrative surrounding Netflix Inc. and streaming video on demand is rather complex and impressive, the company hit a wall last quarter with subscriber growth, falling well short of its own guidance, and that has left the company in a bit of a lurch.
While the promise of subscriber growth has pushed expenses up for original content and we could weave so many fascinating stories about Netflix Inc. and its fantastic pivot from content distribution to creation with distribution, there are two charts which might do a better job than any heady analysis.
Chart 1: Netflix Inc. Revenue
Netflix revenue is booming, has topped $7.6 billion and continues to see greater than 20% year-over-year growth. But, that growth chart comes at a cost.
Chart 2: Netflix Inc. Cash from Operations
Netflix Inc. cash from operations has tumbled to an all-time low, nearing a $900 million deficit in the last year.
OK, so we said two charts but we couldn't resist a third.
Chart 3: Netflix Inc. Worldwide Reach
As of January 2016, the Netflix Inc. (NASDAQ:NFLX) reach has grown and the company entered 130 new countries. This will either be a huge win for the company as it fights off the user growth shrinkage from a major cutback of unoriginal content with its own original content, or it will prove to be a costly error of over expansion in too little time. Time will tell.
WHY THIS MATTERS
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