Netflix Inc., adjustment to net income

US$ in thousands

12 months ended:	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Net income (as reported)	8,711,631)	5,407,990)	4,491,924)	5,116,228)	2,761,395)
Add: Change in unrealized gains (losses) on available-for-sale securities, net of income tax	2,511)	—)	—)	—)	—)
Net income (adjusted)	8,714,142)	5,407,990)	4,491,924)	5,116,228)	2,761,395)

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Netflix Inc., adjusted profitability ratios

	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Net Profit Margin
Reported net profit margin	22.34%	16.04%	14.21%	17.23%	11.05%
Adjusted net profit margin	22.34%	16.04%	14.21%	17.23%	11.05%
Return on Equity (ROE)
Reported ROE	35.21%	26.27%	21.62%	32.28%	24.96%
Adjusted ROE	35.22%	26.27%	21.62%	32.28%	24.96%
Return on Assets (ROA)
Reported ROA	16.24%	11.10%	9.24%	11.48%	7.03%
Adjusted ROA	16.25%	11.10%	9.24%	11.48%	7.03%

Profitability ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by revenue.	Netflix Inc. adjusted net profit margin ratio improved from 2022 to 2023 and from 2023 to 2024.
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by shareholders’ equity.	Netflix Inc. adjusted ROE improved from 2022 to 2023 and from 2023 to 2024.
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by total assets.	Netflix Inc. adjusted ROA improved from 2022 to 2023 and from 2023 to 2024.

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	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
As Reported
Selected Financial Data (US$ in thousands)
Net income	8,711,631)	5,407,990)	4,491,924)	5,116,228)	2,761,395)
Revenues	39,000,966)	33,723,297)	31,615,550)	29,697,844)	24,996,056)
Profitability Ratio
Net profit margin¹	22.34%	16.04%	14.21%	17.23%	11.05%
Adjusted: Mark to Market Available-for-sale Securities
Selected Financial Data (US$ in thousands)
Adjusted net income	8,714,142)	5,407,990)	4,491,924)	5,116,228)	2,761,395)
Revenues	39,000,966)	33,723,297)	31,615,550)	29,697,844)	24,996,056)
Profitability Ratio
Adjusted net profit margin²	22.34%	16.04%	14.21%	17.23%	11.05%

2024 Calculations

¹ Net profit margin = 100 × Net income ÷ Revenues
= 100 × 8,711,631 ÷ 39,000,966 = 22.34%

² Adjusted net profit margin = 100 × Adjusted net income ÷ Revenues
= 100 × 8,714,142 ÷ 39,000,966 = 22.34%

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Profitability ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by revenue.	Netflix Inc. adjusted net profit margin ratio improved from 2022 to 2023 and from 2023 to 2024.

	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
As Reported
Selected Financial Data (US$ in thousands)
Net income	8,711,631)	5,407,990)	4,491,924)	5,116,228)	2,761,395)
Stockholders’ equity	24,743,567)	20,588,313)	20,777,401)	15,849,248)	11,065,240)
Profitability Ratio
ROE¹	35.21%	26.27%	21.62%	32.28%	24.96%
Adjusted: Mark to Market Available-for-sale Securities
Selected Financial Data (US$ in thousands)
Adjusted net income	8,714,142)	5,407,990)	4,491,924)	5,116,228)	2,761,395)
Stockholders’ equity	24,743,567)	20,588,313)	20,777,401)	15,849,248)	11,065,240)
Profitability Ratio
Adjusted ROE²	35.22%	26.27%	21.62%	32.28%	24.96%

2024 Calculations

¹ ROE = 100 × Net income ÷ Stockholders’ equity
= 100 × 8,711,631 ÷ 24,743,567 = 35.21%

² Adjusted ROE = 100 × Adjusted net income ÷ Stockholders’ equity
= 100 × 8,714,142 ÷ 24,743,567 = 35.22%

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Profitability ratio	Description	The company
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by shareholders’ equity.	Netflix Inc. adjusted ROE improved from 2022 to 2023 and from 2023 to 2024.

	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
As Reported
Selected Financial Data (US$ in thousands)
Net income	8,711,631)	5,407,990)	4,491,924)	5,116,228)	2,761,395)
Total assets	53,630,374)	48,731,992)	48,594,768)	44,584,663)	39,280,359)
Profitability Ratio
ROA¹	16.24%	11.10%	9.24%	11.48%	7.03%
Adjusted: Mark to Market Available-for-sale Securities
Selected Financial Data (US$ in thousands)
Adjusted net income	8,714,142)	5,407,990)	4,491,924)	5,116,228)	2,761,395)
Total assets	53,630,374)	48,731,992)	48,594,768)	44,584,663)	39,280,359)
Profitability Ratio
Adjusted ROA²	16.25%	11.10%	9.24%	11.48%	7.03%

2024 Calculations

¹ ROA = 100 × Net income ÷ Total assets
= 100 × 8,711,631 ÷ 53,630,374 = 16.24%

² Adjusted ROA = 100 × Adjusted net income ÷ Total assets
= 100 × 8,714,142 ÷ 53,630,374 = 16.25%

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Profitability ratio	Description	The company
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by total assets.	Netflix Inc. adjusted ROA improved from 2022 to 2023 and from 2023 to 2024.

Netflix Inc. (NASDAQ:NFLX)

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