P&L Statement
2018 2019 2020
(in thousands) Act Act Act
Revenues 15,794,341 20,156,447 24,996,056
Cost of revenues 9,967,538 12,440,213 15,276,319
Marketing 2,369,469 2,652,462 2,228,362
Technology and development 1,221,814 1,545,149 1,829,600
General and administrative 630,294 914,369 1,076,486
Operating income 1,605,226 2,604,254 4,585,289
Other income (expense):
Interest (420,493) (626,023) (767,499)
Interest and other income (expense) 41,725 84,000 (618,441)
Income before income taxes 1,226,458 2,062,231 3,199,349
Provision for income taxes (15,216) (195,315) (437,954)
Net income 1,211,242 1,866,916 2,761,395
Balance Sheet
2018 2019 2020
(in thousands) Act Act Act
Assets
Current assets:
Cash and cash equivalents 3,794,483 $ 5,018,437 $ 8,205,550
Other current assets 5,899,652 1,160,067 1,556,030
Total current assets 9,694,135 6,178,504 9,761,580
Content assets, net 14,951,141 24,504,567 25,383,950
Property and equipment, net 418,281 565,221 960,183
Other non-current assets 910,843 2,727,420 3,174,646
Total assets $ 25,974,400 $ 33,975,712 $ 39,280,359
Liabilities and Stockholders' Equity
Current liabilities:
Current content liabilities 4,681,562 $ 4,413,561 $ 4,429,536
Accounts payable 562,985 674,347 656,183
Accrued expenses and other liabilities 481,874 843,043 1,102,196
Deferred revenue 760,899 924,745 1,117,992
Short-term debt - - 499,878
Total current liabilities 6,487,320 6,855,696 7,805,785
Non-current content liabilities 3,759,026 3,334,323 2,618,084
Long-term debt 10,360,058 14,759,260 15,809,095
Other non-current liabilities 129,231 1,444,276 1,982,155
Total liabilities 20,735,635 26,393,555 28,215,119
Stockholders' equity:
Common stock 2,315,988 2,793,929 3,447,698
Treasury stock - -
Accumulated other comprehensive income (loss) (19,582) (23,521) 44,398
Retained earnings 2,942,359 4,811,749 7,573,144
Total stockholders' equity 5,238,765 7,582,157 11,065,240
Total liabilities and stockholders' equity $ 25,974,400 $ 33,975,712 $ 39,280,359
Cashflow
Other Items
Schedules
Schedules
Other Items
Revenue Sources
2018 2019
(in thousands) Act Act
Streaming revenues 15,428,752.00 19,859,230.00
DVD Revenues 365,589 297,217
Growth % -19%
Total Revenues 15,794,341.00 20,156,447.00
Unites States and Canada ( in thousands)
Revenues 8,281,532.00 10,051,208.00
Average yearly revenue per membership $133.92 $150.84
Average Paid membership 61,839.40 66,634.90
Growth % 8%
Europe, Middle East, and Africa (EMEA) (in thousands)
Revenues 3,963,707.00 5,543,067.00
Average yearly revenue per membership $125.40 $123.96
Average Paid membership 31,608.51 44,716.58
Growth % 41%
Latin America (LATAM) (in thousands)
Revenues 2,237,697 2,795,434.00
Average yearly revenue per membership $111.96 $110.88
Average Paid membership 19,986.58 25,211.35
Growth % 26%
Asia-Pacific (in thousands)
Revenues 945,816 1,469,521.00
Average yearly revenue per membership $133.92 $150.84
Average Paid membership 7,062.54 9,742.25
Growth % 38%
2020
Act
24,756,675.00
239,381
-19%
24,996,056.00
Average Monthly Revenues
11,455,396.00 11,434,119.49 12,309,278.93 13,251,422.46 14,265,676.99 2018 2019
$159.84 $148.20 $148.20 $148.20 $148.20 $11.16 $12.57
71,667.89 77,153.30 83,058.56 89,415.81 96,259.63
8% 8% 8% 8% 8%
Average Monthly Revenues
7,772,252.00 2018 2019
$128.64 $128.64 $10.45 $10.33
60,418.63 83,554.33 115,549.23 159,795.72 220,985.23
35% 38.29% 38.29% 38.29% 38.29%
Average Monthly Revenues
3,156,727.00 2018 2019
$109.44 $9.33 $9.24
28,844.36
14%
Average Monthly Revenues
2,372,300.00 2018 2019
$159.84 $11.16 $12.57
14,841.72
52%
e Monthly Revenues
2020
$13.32
e Monthly Revenues
2020
$10.72
e Monthly Revenues
2020
$9.12
e Monthly Revenues
2020
$13.32
Other Items
(in thousands)
Cost of Goods Sold
as a % revenues
Marketing
as a % revenues
Technology and Development
as a % revenues
General and Administrative
as a % revenues
Other Current assets
as a % revenues
Accounts Payable
Days Payable
Accrued Expenses and other Liabilities
as a % revenues
Deferred Revenue
as a % revenues
PP&E
2018 2019 2020
(in thousands) Act Act Act
Beginning Balance 418,281 565,221
add: Capex 250,519 510,672
less: Depreciation 83,157 103,579 115,710
Closing Balance 418,281 565,221 960,183
Useful life 6 9
Content Assets
2018 2019 2020
(in thousands) Act Act Act
Beginning Balance 14,951,141 24,504,567
add: Addition to Content Assets 18,769,673 11,686,295
less: Amortisation of Content Assets 9,216,247 10,806,912
Closing Balance 14,951,141 24,504,567 25,383,950
Useful life 3.7 3.3
Debt Schedule
Beginning Balance of Debt 10,360,058 14,759,260
add/less: Debt Taken /(debt repaid) 4,399,202 1,049,835
Closing Balance 10,360,058 14,759,260 15,809,095
Interest Expense (420,493) (626,023) (767,499)
-4.1% -4.2% -4.9%
P&L Forcasting
(in thousands)
Streaming revenues
DVD Revenues
Total Revenues
Cost of Goods Sold
Gross Margin
Operating Expenses
Marketing
Technology and development
General and administrative
EBITDA
less: Depreciation
EBIT
Interest
Interest and other income (expense)
EBT
Taxes
tax rate %
Net Income
Balance Sheet
2018 2019 2020
(in thousands) Act Act Act
Assets
Current assets:
Cash and cash equivalents 3,794,483 $ 5,018,437 $ 8,205,550
Other current assets 5,899,652 1,160,067 1,556,030
Total current assets 9,694,135 6,178,504 9,761,580
Content assets, net 14,951,141 24,504,567 25,383,950
Property and equipment, net 418,281 565,221 960,183
Other non-current assets 910,843 2,727,420 3,174,646
Total assets $ 25,974,400 $ 33,975,712 $ 39,280,359
Liabilities and Stockholders' Equity
Current liabilities:
Current content liabilities 4,681,562 $ 4,413,561 $ 4,429,536
Accounts payable 562,985 674,347 656,183
Accrued expenses and other liabilities 481,874 843,043 1,102,196
Deferred revenue 760,899 924,745 1,117,992
Short-term debt - - 499,878
Total current liabilities 6,487,320 6,855,696 7,805,785
Non-current content liabilities 3,759,026 3,334,323 2,618,084
Long-term debt 10,360,058 14,759,260 15,809,095
Other non-current liabilities 129,231 1,444,276 1,982,155
Total liabilities 20,735,635 26,393,555 28,215,119
Stockholders' equity:
Common stock 2,315,988 2,793,929 3,447,698
Treasury stock - -
Accumulated other comprehensive income (loss) (19,582) (23,521) 44,398
Retained earnings 2,942,359 4,811,749 7,573,144
Total stockholders' equity 5,238,765 7,582,157 11,065,240
Total liabilities and stockholders' equity $ 25,974,400 $ 33,975,712 $ 39,280,359
Check 1 1 TRUE
Cash Flow
(in thousands)
EBIT
Operating Taxes
Tax Rate %
NOPAT
add Amortization
add Depreciation
Gross Cash Flow
Account Payables
Deferred Revenue
Current content liabilites
Accrued expenses and other liabilities
Other current assets
Investments in Working Capital
Content Assets
PP&E
Capex:
Extraordinary Items
UFCF
Debt taken (Repaid)
Interest Expense
Diff b/w Operating Taxes & Actual Taxes
Net Cash Flow
Opening Cash
Closing Cash
WACC
Risk free Rate 1.67%
Market Risk Premium 5.50%
Beta 1.058
(in thousands) Amount
Cost of Equity 7.27% RiskfreeRate*beta + Market Risk Premium
Cost Debt 4.88%
Equity
Debt
Equity/(Equity+Debt)
Debt/(Equity+Debt)
WACC
DCF Analysis
(in thousands)
UFCF
Discounting Factor
No of Years
PV of UFCF
Sum of PV
Terminal Value
PV of Terminal value
Enterprise Value
Debt
Cash
Equity Value
