Stock Analysis on Net

Netflix Inc. (NASDAQ:NFLX)

$24.99

Common-Size Income Statement
Quarterly Data

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Netflix Inc., common-size consolidated income statement (quarterly data)

Microsoft Excel
3 months ended: Mar 31, 2025 Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020
Revenues
Cost of revenues
Gross profit
Sales and marketing
Technology and development
General and administrative
Operating income
Interest expense
Interest and other income (expense)
Other income (expense)
Income before income taxes
Provision for income taxes
Net income

Based on: 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).


Cost of Revenues
The cost of revenues as a percentage of total revenues exhibits considerable fluctuation over the analyzed periods, ranging approximately from -49.92% to -68.82%. Lower values (less negative) indicate periods of improved cost efficiency. Notably, several quarters in 2020 and 2021 show an increasing cost trend, peaking close to -68%, followed by a general declining trend toward the end of the timeline, reaching around -49.92% by March 31, 2025. This trend suggests an overall improvement in controlling the costs associated with generating revenues.
Gross Profit Margin
Gross profit margin as a percentage of revenues inversely mirrors the cost of revenues trend and ranges from approximately 31.18% to 50.08%. Initial quarters show a margin around 37-40%, with peaks in the mid-40s, followed by some dips around late 2021 and 2022, but subsequently recovering and showing an upward trajectory into early 2025. The peak at 50.08% in March 2025 reflects strong gross profitability improvements.
Sales and Marketing Expenses
Sales and marketing expenses relative to revenues fluctuate between roughly -6.53% and -11.48%. There are evident spikes corresponding to certain quarters, notably nearing -11.48% in December 2020 and other end-year periods, indicating periodic increased investments in sales and marketing. The data trend suggests a commitment to controlling these expenses over time while maintaining sufficient investment in growth initiatives.
Technology and Development Expenses
Technology and development costs remain relatively stable across periods, hovering within a narrow band of about -7.05% to -8.99% of revenues. Slight increases are noted around mid-2022, but generally, the expenses show consistency indicative of steady investment in product and technological capability supporting revenue generation.
General and Administrative Expenses
General and administrative costs show minor variation, ranging from roughly -4.0% to -5.6%. Some peaks occur around late 2021 and 2023, with a tendency toward moderate control in the most recent periods, signifying typical overhead cost behavior aligned with operational scale and governance.
Operating Income
Operating income as a percentage of revenues displays notable volatility, ranging approximately from 7% to 31.75%. The highest profitability corresponds with quarters where cost control measures were effective and gross margins were strong. Particularly, peaks near or above 28%-31% are observed toward late 2024 and early 2025. Conversely, some quarters, such as late 2020 and late 2022, show significant dips signaling periods of compressed operating profitability.
Interest Expense
Interest expense trends demonstrate a steady decline as a percentage of revenues, from around -3.19% in early 2020 to approximately -1.75% by March 2025. This suggests effective debt management or refinancing strategies resulting in reduced financing costs over time.
Interest and Other Income (Expense)
This line item exhibits considerable volatility, alternating between positive and negative contributions ranging from approximately -4.33% to 3.76%. Such fluctuation indicates variable investment income, costs, or non-operating financial activities affecting the overall financial results intermittently.
Other Income (Expense)
Other income and expenses similarly demonstrate variability, with values generally oscillating close to zero but occasionally reaching negative peaks near -6.5%. This suggests sporadic non-recurring or irregular gains or losses impacting the income statement.
Income Before Income Taxes
Income before taxes follows operating income trends, fluctuating between low points around 7% to highs above 30%. Strong pre-tax earnings in many quarters, especially in 2024 and early 2025, highlight periods of robust profitability after all operating and financing costs.
Provision for Income Taxes
Tax provisions relative to revenues vary widely with some quarters showing negative provisions implying tax benefits or credits, and others positive indicating tax expenses. The values range between roughly -5.13% to 0.73%, reflecting changes in tax rates, deferred tax assets/liabilities, or tax planning activities.
Net Income
Net income margin ranges from approximately 0.7% to 27.42%, mirroring the trends in operating and pre-tax income but moderated by tax effects and other income/expenses. Strong net income margins above 20% in multiple recent quarters indicate profitable operations, while dips below 10% coincide with quarters of elevated costs or expenses.