Netflix now anticipates at least $5B in free cash flow for 2023

Netflix said: “Net cash generated by operating activities in Q2 was $1.4B vs. $0.1B in the prior year period. Free cash flow in Q2’23 amounted to $1.3B compared with about breakeven in the year ago quarter. Assuming no material swings in F/X, we now anticipate at least $5B in FCF for 2023, up from our prior estimate of at least $3.5B. Our updated expectation reflects lower cash content spend in 2023 than we originally anticipated due to timing of production starts and the ongoing WGA and SAG-AFTRA strikes. While this may create some lumpiness in FCF from 2023 to 2024, we plan to deliver substantial positive FCF in 2024… We finished Q2 with gross debt of $14.5B (in-line with our $10B-$15B targeted range) and cash and short term investments of $8.6B. During the quarter, we repurchased 1.8M shares for $645M. We now have $3.4B of capacity remaining under our $5B share buyback authorization. We’re currently running a bit above our targeted minimum cash level , so we expect to increase our stock repurchase activity in the second half of 2023, assuming no material change in our business.”