By Yasin Ebrahim
Investing.com – Netflix (NASDAQ:) stated Tuesday it expects to be cash-flow impartial this 12 months after reporting fourth quarter that missed analysts’ forecasts, however paid subscribers markedly topped expectations.
Netflix shares gained greater than 10% in after-hours commerce following the report.
Netflix introduced earnings per share of $1.19 on income of $6.64B. Analysts polled by Investing.com anticipated EPS of $1.35 on income of $6.62B.
The corporate reported web provides of 8.51 million to 203.7 million, effectively above steering of 6 million.
In an indication that the streaming large’s money burn is underneath management after years of scrutiny, Netflix stated it anticipated to be cash-flow impartial this 12 months and in each subsequent 12 months. “[W]e imagine we now not have a necessity to lift exterior financing for our day-to-day operations…” and are “very near being sustainably FCF optimistic,” the corporate stated.
For the total 12 months 2021, Netflix at the moment anticipated free money move will likely be round break even, in contrast with its prior expectation for -$1 billion to interrupt even.
The corporate additionally touted inventory buyback forward.
“As we generate extra money, we intend to take care of $10B-15B in gross debt and can discover returning money to shareholders by means of ongoing inventory buybacks, as we did prior to now (2007-2011).”
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