Netflix now expects 2019 free cash flow deficit to be 'modestly higher' at $3.5B
Netflix said: "Net cash used in operating activities in Q1'19 was -$380M vs. -$237M in the prior year period. Free cash flow totaled -$460M vs. -$287M in the year ago quarter...We now expect 2019 free cash flow deficit to be modestly higher at approximately -$3.5B due to higher cash taxes related to the change in our corporate structure and additional investments in real estate and other infrastructure. We're still expecting free cash flow to improve in 2020 and each year thereafter, driven by our growing member base, revenues, and operating margins. There's no change to our plan to use the high yield market to finance our cash needs. We recently upsized our revolving credit facility from $500M to $750M (which remains undrawn) at the same cost and extended the term from 2022 to 2024."