Netflix Total Operating Expenses by Quarter

The below graph represents the total operating expenses of Netflix Inc., starting from fiscal Q1 2002 to Q2 2020. During the second quarter of 2020, the OTT player reported nearly 13.6% YoY increase in its quarterly operating expenses, amounting to $4,790.4 million.

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The above graph represents the Netflix total operating expenses by quarter, starting from fiscal Q1 2002 to the recently completed quarter. The company’s total operating expenses include cost of revenue, marketing expenses, technology and development expenses, general and administrative expenses, etc. Netflix quarterly operating expenses increased nearly 13.6% YoY during Q2 2020, to $4,790.4 million. However, it’s a negligible 0.4% decline when compared to the previous quarter.

Surge in Netflix Quarterly Expenses: History

RegionWorldwide
SourceNetflix Quarterly ReportsSEC Filings
Graph ID892
NoteNetflix fiscal year starts from January 1st

As the graph shows, it was Q4 2019 when the quarterly expenses of Netflix Inc. surpassed $5 billion mark. The total operating expenses reached an all-time high of $5,008.9 million during the fourth quarter, with over 26% YoY growth. Nearly $3,466 million of that were Netflix’s cost of revenue.

In fiscal Q2 2013, the company’s quarterly expenses surpassed $1 billion mark for the first time since its inception. With nearly 16% YoY growth, Netflix’s total operating expenses clocked $1,012.26 million. During the quarter, Netflix’s total revenue was $1,069.37 million, worldwide. The OTT player took 3 years to double its quarterly expenses; in fiscal Q2 2016, the total expenses surpassed $2 million mark ($2,034.83 million to be precise) for the first time, with a strong 29.6% YoY growth.

In fiscal Q1 2019, Netflix’s quarterly costs and expenses exceeded $4 billion for the first time, representing a whopping 89.8% of the company’s total revenue. The OTT player spent a whopping $4,061.9 million on marketing, advertising, R&D and other operating activities. Interestingly, Netflix’s marketing expenses accounted for approximately 15.2% of its total operating expenses during Q1’19.

About Netflix Inc.

Netflix Inc. (NASDAQ: NFLX) was founded on August 29, 1997, by Reed Hastings and Marc Randolph as a DVD-rental-by-mail firm. However, the company began its operations on April 14, 1998, by opening the world’s first online DVD rental store. For $19.95 a month, subscribers can rent as many DVDs as they want. The company slowly expanded its business by offering the streaming service in the US while retaining the DVD and Blu-ray rental service. In September 2010, the company began offering its streaming service to Canada, which later expanded to other international markets such as Latin America, the United Kingdom, Ireland, Australia, etc. Netflix is now available almost every corner of the world, except in mainland China (due to local restrictions), Syria, North Korea, and Crimea (due to US sanctions).

Netflix’s IPO (initial public offering) completed on May 29, 2002, selling 5.5 million shares of common stock at the price of $15.00 per share.

On January 22, 2018, Netflix’s market capitalization ballooned to $100 billion, becoming the largest digital media and entertainment company in the world.

Netflix is ranked #38 on the list of the World’s Most Valuable Brands by Forbes, with a brand value of $15.5 billion in 2019.


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