Netflix Earnings | Free Cash Flow vs Profit

[@robkennedy5906]

Profit is an opinion, cash is a fact. Great video.

[@BrianFeroldiYT]

100% Rob!

[@yagamiram]

I cannot ask anything more than this. Best video ever! What I love more about your channel is, you both reiterate the same terms and technique’s multiple times that makes me to understand more about it. Thanks! My qq: If the cash flow is negative, does it mean the company is not profited yet? Here, even after running a business for more than 30 years, is NFLX still in losses like other new companies like Uber, Lyft?

[@BrianFeroldiYT]

Thanks Yagamiram! To your question, it depends on what you mean by "profit". Is profit net income? Then NFLX is profitable. Is profit free cash flow? Then it's not. This is why accounting is an imperfect language.

[@r4759]

Thank you so much for this quality videos. I'm learning so much. I'm starting to read company's S1 and earnings report to start understanding their numbers. Thank you!!!

[@BrianFeroldiYT]

Great to hear Ravi!

[@jeffery8928]

I wish FCF didn't include SBC

[@felipe741]

Amazing lesson! Thank you

[@efibendor1]

In Netflix case “additions to content” could be seen as belongs to the cash flows from investing not from operations

[@BrianFeroldiYT]

Right, they are investments in the business

[@Viibeezz]

As a CPA, I can say this is a great explanation of everything!

[@BrianFeroldiYT]

Thanks James!

[@augustusg857]

Low fcf is a sign that company will require external funding through increased debt(more risk in the business, bankruptcy) and selling shares(dilution and Lower eps and lower stock price).

[@BrianFeroldiYT]

100% correct

[@ssjj005]

Is (Repurchase of Common Stock) same as stock buy back?

[@JoseReyes-jq9kw]

Great value in this video it is one that I will save and come back to watching many times. Great job.

[@BrianFeroldiYT]

Glad you enjoyed it Jose!

[@augustusg857]

Cash from ops being negative is worse than fcf being negative because negative cash from ops means that a company cannot reinvest into keeping existing assets going and cannot buy new assets to grow even more. If they can't maintain their assets buy spending on cap ex maintenance they will lose revenue and ultimately net income and also lower net assets on the balance sheet. So equity on BS goes down too.

[@BrianFeroldiYT]

Good point Augustus

[@jorge5213]

Amazing video !! Very valuable information, greetings from Chile !!

[@BrianFeroldiYT]

Glad it was helpful Jorge!

[@MasterLeong888]

amazing thank you so much for the explanation

[@BrianFeroldiYT]

Glad it was helpful Leong!

[@yutingchang3260]

this is very educational. Keep these type of videos coming.

[@BrianFeroldiYT]

This is literally why we have a channel in the first place -- to make educational videos like this!

[@robblest2221]

Thanks guys

[@BrianFeroldiYT]

Our pleasure Rob!

[@sritamprout]

My favourite channel!

[@BrianFeroldiYT]

Wow! Thansk for that!

[@garrettdunnavant3241]

Did you learn the majority of this through your education, or experience? I am in college right now and i've seen a lot of this before, but it doesn't always stick.

[@BrianFeroldiYT]

Experience. I took accounting classes in school. I wasn't ever taught how to apply this to investing.

[@CieloGotCash]

hey love your channel best one on youtube!!!! what do you mean by plant?😅

[@BrianFeroldiYT]

Thanks! Plant? Was that something I said?

[@CieloGotCash]

@@BrianFeroldiYT the other brain😅 i think it was one of the cap ex

[@mixnmichael1]

Is netflix ever gonna make more than they need to invest in new content? Seems like a big black hole for cash.

[@BrianFeroldiYT]

They said that's the plan for 2022 and beyond