Netflix — Oct 17, 2024 release

Cash Flow and Capital Structure Net cash generated by operating activities in Q3 was $2.3B vs. $2.0B in the prior year period. Free cash flow (FCF) 15 totaled $2.2B compared with $1.9B in last year’s Q3. For the full year, we now expect 2024 FCF of $6.0B-$6.5B (assuming no material swings in F/X rates), up from approximately $6B due to our higher operating income forecast. During Q3, we repurchased 2.6M shares for $1.7B, and we have $3.1B remaining under our existing authorization. We also raised $1.8B in our first investment grade bond deal during Q3. As a result, our total debt increased to $16B from $14B in Q2, but net debt 16 decreased from $7.4B in Q2 to $6.8B at the end of Q3. Proceeds from our bond offering will be used to pay down $1.8B in bonds that mature over the next 12 months. Reference For quick reference, our past investor letters can be found here 17 . ___________________________________ 15 Defined as cash provided by (used in) operating activities less purchases of property and equipment and change in other assets. 16 Defined as total debt less cash and cash equivalents and short-term investments. Total debt consists of short-term and long-term debt, plus debt issuance costs and original issuance discount. 17 https://ir.netflix.net/financials/quarterly-earnings/default.aspx 5 Regional Breakdown (in millions) Q3'23 Q4'23 Q1'24 Q2'24 Q3'24 UCAN Streaming: Revenue $ 3,735  $ 3,931  $ 4,224  $ 4,296  $ 4,322  Paid Membershi