Netflix Inc. (NFLX)Company OverviewNetflix, Inc. (Netflix), incorporated on August 29, 1997, is an Internet subscription service streaming television shows and movies. The Company's subscribers can watch unlimited television shows and movies streamed over the Internet to their televisions, computers and mobile devices, and in the United States, subscribers can also receive digital versatile discs (DVDs) delivered to their homes. The Company operates in three segments: Domestic streaming, International streaming and Domestic DVD. The Company obtains content from various studios and other content providers through fixed-fee licenses, revenue sharing agreements and direct purchases. The Company markets its service through various channels, including online advertising, broad-based media, such as television and radio, as well as various partnerships. In October 2012, the Company launched its streaming service in Finland, Denmark, Sweden and Norway.Common Primary Shares (mil)59

Market Cap Consolidated (mil)17,813.43

Enterprise Value (mil)5,915.35

EPS LTM*0.79

Forward P/E**212.25

Beta0.95

The company recorded revenues of $3,204.6 million during the financial year ended December 2011 (FY2011), an increase of 48.2% over FY2010. The operating profit of the company was $376.1 million in FY2011, an increase of 32.6% over FY2010. The net profit was $226.1 million in FY2011, an increase of 40.6% over FY2010.Fundamentals Information

Key Financials(millions)Y12Y11Y10Y09Y08

Sales3,609.283,204.582,162.631,670.271,364.66

Operating Income49.99385.07277.55187.38115.18

Net Income17.35226.13160.85115.8683.03

Total Assets3,911.033,040.90964.6663.78595.54

Total Liabilities3,166.362,398.09674.44464.63248.38

EBIT50.47379.55287.33198.67133.96

Ratio AnalysisPROFITABILITY 12/31/1212/31/1112/31/1012/31/0912/31/08

Return On Total Equity2.4748.4765.7542.4221.35

Reinvestment Rate2.4748.4765.7542.4221.35

Return On Assets0.8611.9421.3219.0713.80

Return On Invested Capital2.0929.8336.0429.1620.71

Cash Earnings Return On Equity-0.4742.5720.04135.7279.21

Cash Flow To Sales-0.096.202.2722.1922.58

Cost of Goods Sold To Sales25.5937.4647.1049.2048.95

Gross Profit Margin27.2536.3437.2435.3833.30

Operating Profit Margin1.3912.0212.8311.228.44

Pretax Margin0.8411.2212.3811.519.64

Net Margin0.487.067.446.946.08

LIQUIDITY12/31/201212/31/201112/31/201012/31/200912/31/2008

Quick Ratio0.450.650.901.411.38

Current Ratio1.341.491.651.821.67

Cash Ratio33.3843.6354.6777.9282.24

Receivables Pct Current Assets0.000.000.000.000.00

Inventories Pct Current Assets0.000.000.000.000.00

Accounts Receiv. Days#N/A#N/A#N/A#N/A#N/A

Inventories Days Held#N/A#N/A#N/A#N/A#N/A

Investor Types

Investor TypeInvestors% O/SPosVal ($MM)

Investment Managers70389.7452,874,19811,094.16

Brokerage Firms424.802,825,693596.48

Strategic Entities102.111,241,222269.80

Holding Companies00.0000.00

Corporations00.0000.00

Individuals102.111,241,222269.80

Government Agency00.0000.00

Total - All Holders75596.6456,941,11311,960.43

Insider Filings (As Reported)

Insider120.21123,36239.25

Price ChartNetflix share prices over the past 5 years.

Netflix share prices compared to the other 8 companies

CompetitorsSources: http://www.forbes.com/sites/avaseave/2013/06/06/netflix-to-competitors-be-afraid-be-very-afraid/Signals to competitors: Expect more Hastings is clear that Netflix is not intending to have advertising, nor pay per view. Those are fine business models that other brands do well. With only one revenue stream, his allowable spending for customer acquisition will exceed those competitors who have multiple streams so he is warning them to stay out of his way since he is staying out of theirs. Netflix names HBO as its biggest, long-term competitor for content. Hastings discusses specific deals that HBO has won (movie output deals with Universal and Fox) or might bid for (original products.) He wantsHBO to know for sure Netflix will be involved in similar future auctions. Combine this with the statement, They are not currently a bidder against us for prior-season television from other networks appears to be a warning to stay away from this area or there could be a price war on all sorts of content Hastings points out that the spending on tech and their process knowledge can be spread over many more markets and households as the company expands. So they will continue spending money in this area, expecting it to pay off. Our advantage internationally is our global tech spending for an improving app and service, our process knowledge, our data from related markets. Regional market domination comes from market-specific scale that is executed via fixed cost advantages in content acquisition and member acquisition.And Hastings names how big that needs to be: 20% to 30% household penetration. The company intends to spend to get to that level, since it is very likely to be able to sustain that profit stream for many decades.

Signals to Vendors: Expect less Netflix will not be comprehensive. Hastings writes, We are actively curating our service rather than carrying as many titles as we can. So thelicensing revenue some of their partners (i.e. Viacom)have come to expect will be dropping by the piece and by the pound. What should producers expect from Netflix in funding new content? Spending on original content will be less than 10% of the $2bn content spend budgeted. In addition, they will syndicate the investment with other producers standard industry practice. We will raise capital as needed to fund the growth of Originals. Hastings wants to do business with everyone he can. [W]e license content from multiple suppliers, mirroring the fragmentation of the content industry. He warns that he will pay for content at higher prices, but that he wants this content exclusively. And if it doesnt perform up to expectations, he will know exactly how much he should pay (if anything) based on viewings and member feedback.

Signals to Frenemies: Cant we all just get along? Netflix wants to co-exist with ISPs/MVPDs to avoid pricing wars: The stability of the MVPD subscriber base, despite Netflix large membership, suggests that most members consider Netflix complementary to, rather than a substitute for, MVPD video. So dont blame Netflix and therefore dont punish Netflix customers by charging more for heavy video usage. (This is an argument for net neutrality without using that politically charged term.) Since Netflix is counter-positioned against MVPDs as content-only across all distribution platforms vs. MVPDs multiple services through a single platform, the inference is that customers will choose according to their needs.

Analysts ReportThomson Estimates

Company Analysis by Wright Investors Service

Competitor AnalysisNetflix Inc operates in the Video tape rental sector. This analysis compares Netflix Inc with three other companies: Outerwall Inc (2012 sales of $2.20 billion of which 87% was DVD Services), Regal Entertainment Group ($2.82 billion of which 100% was Theatre Group), and Cinemark Holdings, Incorporation. ($2.47 billion of which 69% was U.S. Revenues).

Sales AnalysisDuring the fourth quarter of 2012, sales at Netflix Inc totalled $945.24 million. This is an increase of 8.0% from the $875.58 million in sales at the company during the fourth quarter of 2011. During the previous 32 quarters, sales at Netflix Inc have increased compared with the same quarter in the previous year. There appears to be at least some degree of seasonality in the sales at Netflix Inc: during 8 of the previous 9 years, sales were highest during the fourth quarter. The exception to this was during 2007, when the first quarter was the best quarter, accounting for 25% of sales (during that same year, the fourth quarter accounted for 25% of sales). Netflix Inc reported sales of $3.61 billion for the year ending December of 2012. This represents an increase of 12.6% versus 2011, when the company's sales were $3.20 billion. Sales at Netflix Inc have increased during each of the previous five years (and since 2007, sales have increased a total of 199%). Sales of International Streaming saw an increase that was more than double the company's growth rate: sales were up 2,537.1% in 2012, from $82.85 million to $2.18 billion. Not all segments of Netflix Inc experienced an increase in sales in 2012: sales of Domestic Streaming fell 90.8% to $287.54 million.

Netflix Inc currently has 2,045 employees. With sales of $3.61 billion , this equates to sales of US$1,764,930 per employee. This is much higher than the three comparable companies, which had sales between US$128,047 and US$752,321 per employee.Recent Stock PerformanceThe stock price has more than doubled recently: For the 52 weeks ending 9/27/2013, the stock of this company was up 473.8% to $312.40. During the past 13 weeks, the stock has increased 48.0%. During the past 52 weeks, the stock of Netflix Inc has outperformed (by a large margin) the three comparable companies, which saw gains between 13.6% and 40.7%. During the 12 months ending 6/30/2013, earnings per share totalled $0.79 per share. Thus, the Price / Earnings ratio is 395.44. This P/E ratio is very high, and is therefore not a very useful indicator of company valuation. These 12 month earnings are substantially greater than the earnings per share achieved during the calendar year ending last December, when the company reported earnings of 0.29 per share. Earnings per share fell 93.0% in 2012 from 2011. The 395.4 P/E ratio of this company is much higher than the P/E ratio of all three comparable companies, which are currently trading between 11.8 and 28.4 times earnings. This company is currently trading at 5.10 times sales. This is at a higher ratio than all three comparable companies, which are trading between 0.65 and 1.47 times sales. Netflix Inc is trading at 23.25 times book value. However, at the end of fiscal year 2012, this company's intangible assets ($1.51 billion) were higher than its common equity ($744.67 million), which means that the price to book ratio is not a very useful indicator.Summary of company valuations (as of 9/27/2013).

The market capitalization of this company is $18.41 billion . The capitalization of the floating stock (i.e., that which is not closely held) is $18.02 billion .Dividend AnalysisThis company has paid no dividends during the last 12 months. The company has not paid any dividends during the previous 6 calendar years.Profitability AnalysisOn the $3.61 billion in sales reported by the company in 2012, the cost of goods sold totalled $923.78 million, or 25.6% of sales (i.e., the gross profit was 74.4% of sales). This gross profit margin is significantly better than the company achieved in 2011, when cost of goods sold totalled 37.5% of sales. In 2012, the gross margin was the highest of the previous five years (and in 2009 was as low as 50.8%). Netflix Inc's 2012 gross profit margin of 74.4% was better than all three comparable companies (which had gross profits in 2012 between 31.8% and 61.0% of sales). The company's earnings before interest, taxes, depreciation and amorization (EBITDA) were $1.75 billion, or 48.5% of sales. This EBITDA margin is better than the company achieved in 2011, when the EBITDA margin was equal to 38.2% of sales. The three comparable companies had EBITDA margins that were all less (between 18.9% and 22.1%) than that achieved by Netflix Inc. In 2012, earnings before extraordinary items at Netflix Inc were $17.15 million, or 0.5% of sales. This profit margin is lower than the level the company achieved in 2011, when the profit margin was 7.1% of sales. The company's return on equity in 2012 was 2.7%. This was significantly worse than the already high 77.9% return the company achieved in 2011. (Extraordinary items have been excluded).

During the fourth quarter of 2012, Netflix Inc reported earnings per share of $0.13. This is a drop of 80% versus the fourth quarter of 2011, when the company reported earnings of $0.65 per share.Research and DevelopmentResearch and Development Expenses at Netflix Inc in 2012 were $329.01 million, which is equivalent to 9.1% of sales. In 2012 R&D expenditures increased both as a percentage of sales and in actual amounts: In 2011, Netflix Inc spent $259.03 million on R&D, which was 8.1% of sales. During each of the previous 5 years, the company has increased the amount of money it has spent on Research and Development (in 2007, Netflix Inc spent $71.40 million versus $329.01 million in 2012). Netflix Inc increased its R&D spending in 2012 by $69.98 million. If it had kept its R&D expenditures level with 2011, then the ordinary earnings before taxes would have been approximately 230% higher.Financial PositionAs of December 2012, the company's long term debt was $430.60 million and total liabilities (i.e., all monies owed) were $3.17 billion. The long term debt to equity ratio of the company is 0.58.

SWOT ANALYSIS by MarketLine

Netflix, Inc.: Strengths

Strong business model provides a superior value propositionNetflix is the world's largest subscription service sending DVDs by mail and streaming movies and TV episodes over the internet with 30 million subscribers. The company operates an internet-based subscription model which has done away with many disadvantages experienced in traditional outlets. The number of customers opting for Netflix over the traditional model is on the rise as it offers greater convenience. Netflix also enjoys additional competitive advantages. The company provides more than 100,000 DVD titles which is not possible for outlets as they cannot stock such a large number of DVDs. Outlets devote larger space for newer releases and alternatively Netflix can offer old and new titles simultaneously without incurring additional costs. Technology enables customers to sort through the titles easily which is almost impossible to do so in the traditional model. With Netflix, customers pay a fixed monthly subscription fee, eliminating due dates, late payment fees, shipping fees and pay-per-view fees. Netflix's merchandising practices coupled with its recommendation services provide tools for subscribers to select titles that appeal to individual preferences.Netflix's instant streaming service over the internet is witnessing escalating growth. There are over 800 devices worldwide that can stream content from Netflix instantly. These include the Microsoft Xbox 360, Nintendo Wii and Sony PS3 consoles; Blu-ray disc players, Internet-connected TVs, home theater systems, digital video recorders and Internet video players; Apple iPhone, iPad and iPod touch, Android devices, as well as Apple TV and Google TV. Devices such as the iPhone, iPad and iPod touch enable viewers to watch movies and TV shows while on the move. Netflix's business model provides customers with the most convenient way to view DVDs as they are delivered to their addresses and the subscribers can return them through pre-paid postage envelopes. The business model that Netflix operates gives it a competitive advantage.Revenue sharing relationships with distributors reduced investments for content acquisitionNetflix has several revenue sharing agreements with distributors and content providers. Under these agreements, the company pays a low initial amount to obtain content and then shares the revenues from subscription fees with the content providers or pays a fee based on the usage of the content. This gives the company the advantage of procuring content at a low cost and an additional amount has to be paid only if the subscribers rent the DVD. Netflix is able to provide subscribers with a larger selection of DVDs as the risk of losing investment is less. Such revenue sharing agreements reduce investments for content acquisition and a wide selection offers more choice to customers.Effective marketing and improving customer experience helps in increasing the number of subscriptionsNetflix promotes services through various marketing programs which include online promotions, TV and radio advertising, package inserts and other promotions with third parties. The company also provides a free trial period as a promotional offer to attract new customers. Netflix's consumer electronics partners also help generate new subscribers. In addition, Netflix continues to improve its customer experience by expanding its streaming content, improving user interfaces, as well as expanding its streaming service to more Internet-connected devices. These efforts enable the company to drive additional subscriber growth. The average number of paying subscribers grew from 14,744,000 in 2010 to 21,977,000 in 2011, an increase of 49.1% in the US. Subscriber growth leads to word-of-mouth promotion for Netflix's services, which, in turn, leads to more new subscribers. The increase in total number of subscribers, as well as net subscriber additions leads to increased revenues for the company.Netflix, Inc.: Weaknesses

Litigations impact brand image and financial positionNetflix is subject to various legal proceedings. The company is involved in litigation matters and claims, such as claims relating to business practices and patent infringement. In January 2012, a shareholder class action suit was filed in the US District Court for the Northern District of California against the company and certain of its officers and directors alleging that the company issued materially false and misleading statements regarding its business practices and its contracts with content providers. In the same month, another suit was filed against the company alleging virtually identical claims. The complaints allege violation of the federal securities laws and seek unspecified compensatory damages and other relief. Similarly, in March 2010, Parallel Networks filed a complaint for patent infringement against Netflix in the US District Court for the Eastern District of Texas. The complaint alleged that the company infringed a patent entitled 'method and apparatus for client-server communication using a limited capability client over a low-speed communication link'. Previously, in September 2009, Alcatel-Lucent USA filed a complaint for patent infringement against the company.Between January and April 2009, a number of alleged anti-trust class action suits were filed against Netflix in various US Federal Courts. The complaints alleged that Netflix and Wal-Mart entered into an agreement to divide the market for sales and online rentals of DVDs which led to higher subscription prices at Netflix. Litigations can be expensive and can disrupt business operations. Legal issues such as these would not only impact the brand image but would also affect Netflix's financial position and results of operations.Netflix, Inc.: Opportunities

Growing demand for online video streaming has already increased viewershipNetflix has been aggressively investing in streaming of movies, TV programs and other videos in high definition to subscribers. Netflix enables subscribers to watch movies and TV shows through the internet via online streaming. Consumers can stream content through Netflix-ready-internet-enabled devices such as the Microsoft Xbox 360, Nintendo Wii and Sony PS3 consoles; Blu-ray disc players, Internet-connected TVs, home theater systems, digital video recorders and Internet video players; Apple iPhone, iPad and iPod touch; and Android devices. According to industry sources, the total video streams increased by more than 20% in August 2012, compared to December 2011. According to industry sources, in August 2012, Netflix was the top brand in terms of time spent as the average US video viewer spent more than 10 hours watching videos on the site.In FY2011, approximately 73.6% of all new gross domestic unique subscribers chose the unlimited streaming plan. At December 31, 2011, 88.9% of the company's total domestic unique subscribers had a streaming subscription while less than half (11.1 million) had a DVD subscription. Online video streaming is a high potential market and by investing in this market, Netflix can differentiate itself from competitors. It also leads to faster subscription growth, lower subscription acquisition costs and higher profits. As the market for online streaming grows, Netflix will reap increased benefits, with a positive impact on margins and profits.Growth in online spending will strengthen Netflix's core marketNetflix's core business is based on the internet and is directly related to online consumer spending. According to the US Department of Commerce, online retail sales in the US increased from $144.6 billion in 2009 to $193.7 billion in 2011, representing a compound annual growth rate of 15.7%. e-commerce sales accounted for 4.7% of the total retail sales in the US in 2011 compared to 3% in 2006. Furthermore, in the third quarter of 2012, the online retail sales reached $57 billion, an increase of 3.7% from the second quarter of 2012. With 30 million subscribers, Netflix is the largest company providing internet based DVD rental service. As Netflix only operates on the online platform, its growth is directly linked to the online spending potential of the consumers. As the outlook in this arena is positive in the longer term, Netflix can penetrate the market effectively by leveraging its dominant position in the e-commerce segment.Strategic partnerships expand subscriber baseNetflix has entered into a number of strategic partnerships in the recent past. In December 2012, the company entered into a new multi-year licensing agreement with The Walt Disney Studios to become exclusive US subscription television service provider for first-run live-action and animated feature films from The Walt Disney Studios. Beginning with its 2016 theatrically released feature films, new Disney, Walt Disney Animation Studios, Pixar Animation Studios, Marvel Studios and Disney nature titles will be made available for Netflix members to watch instantly in the pay TV window on multiple platforms. Netflix entered into a new multi-year licensing agreement with The Weinstein Company in February 2012 that makes foreign language, documentary and certain other movies from The Weinstein Company exclusively available for Netflix members in the US to watch instantly. In May 2012, the company entered into a new multi-year licensing agreement with Twentieth Century Fox Distribution to make its TV series and films available for Netflix members to instantly watch in Latin America and Brazil. In November 2011, Netflix entered into a multi-year licensing agreement with Lionsgate UK, a subsidiary of Lions Gate Entertainment Corp, to provide exclusive subscription streaming service in the UK and Ireland for first-run feature films from the studio. Further, in the same month, the company entered into a new multi-year digital licensing agreement with Miramax to bring a broad range of Miramax films to Netflix members in the UK and Ireland. The company, in January 2011, announced the introduction of Netflix One-click remote which enables subscribers to instantly watch movies and TV shows streamed from Netflix. Major consumer electronics manufacturers such as Haier, Memorex, Panasonic, Samsung, Sharp, Sony, and Toshiba are to place the Netflix one-click button on remote controls. Remote controls for the Boxee, Iomega and Roku set-top boxes also will feature the Netflix one-click remote. This move increases convenience as well as brand awareness of Netflix, which in turn will lead to increase in subscriptions. Strategic partnerships such as these would increase the subscriber base and enhance the topline for Netflix.Netflix, Inc.: Threats

Cost of delivering DVDs on the riseNetflix delivers DVDs directly to the members' addresses by mail with a postage-paid return envelope. The US Postal Service has increased the postage charges in recent times. The US Postal Service increased the rate for first class postage to 42 cents in May 2008, to 44 cents in May 2009 and to 45 cents again in January 2012. The US Postal Service is expected to raise rates again in subsequent years. Moreover the US Postal Service recently announced changes to its service that would close many of its mail processing facilities and eliminate next day service for first class mail which will result in slower delivery of the company's DVDs. If the US Postal Service changes any policies relative to the requirements of first-class mail, including changes in size, weight or machinability qualifications of the company's DVD envelopes, such changes could result in increased shipping costs or higher breakage for DVDs and could adversely affect the company's gross margin.Price increases affect subscriber baseIn the third quarter of 2011, Netflix introduced DVD only plans and separated the unlimited DVDs by mail and unlimited streaming into separate plans. This change enables subscribers to subscribe to a streaming only plan, a DVD only plan or both. As a result, the plan that includes both unlimited streaming and DVDs by mail is no longer on offer. Subscribers who want to subscribe to both streaming and DVD plans need to pay separately for each plan, paying more than its earlier offering. This move resulted in higher than expected customer cancellations with negative reactions from consumers. This could affect market share of the company as customers may cancel their subscriptions and look for alternatives from competitors. The company's results of operations may be adversely impacted.Increasing internet frauds caution customers and dampen growth ratesNetflix maintains personal data on subscribers including billing data and has taken stringent measures to protect its systems from frauds like hacking and credit card fraud. However, in recent times, according to the Internet Crime Complaint Center's (IC3) statistics, internet fraud has been on a rise. The IC3 is a partnership between the Federal Bureau of Investigation (FBI) and the National White Collar Crime Center (NWC3). It receives internet related criminal complaints, and after further research, refers them to appropriate law enforcement agencies. During 2011, IC3 registered more than 300,000 complaints, an increase of 3.4% over 2010. According to IC3, in 2011 it has received and processed, on an average, more than 26,000 complaints per month. The trend of increasing internet frauds tends to increase caution among customers and this will deter the market from growing at a fast pace.According to industry sources, a fake Netflix Android App was in circulation very recently. It looks like the real app but is a fake that steals account information. Using the stolen log-in information, the accounts of the users could be hacked. Netflix's reputation could be affected and there could be a loss of confidence among consumers due to such incidents. Netflix has to incur high expenses to curb internet frauds given the trend of their increase in recent times coupled with increase in privacy concerns among customers. In spite of the measures taken, Netflix is still exposed to the risk of hacking and other such related frauds.Future ProspectsSource: http://venturebeat.com/2013/04/24/heres-how-netflix-sees-the-future-of-tv/The future of TVTraditional TV viewing is dying and will eventually be replaced by Internet TV apps, the company outlines in the document. A variety of causes are behind this, including faster Internet speeds and a desire to stream higher-resolution video.Eventually, as linear TV is viewed less, the spectrum it now uses on cable and fiber will be reallocated to expanding data transmission. Satellite TV subscribers will be fewer, and mostly be in places where high-speed Internet (cable or fiber) is not available. The importance of high-speed Internet will increase.

SpendingNetflix is spending about $350 million annually to maintain and improve its streaming service. This includes pushing the Netflix service across several platforms and devices, improving the user interface, monitoring performance, etc. Thats a pretty hefty sum, but it pales in comparison to the companys content budget.Netflixs vast content library of movies and TV shows costs about $2 billion per year. The bulk of that money goes to licensing deals, such as theagreement Netflix made with Disneyback in December. A very small portion of content spending goes to exclusive original content, such asHouse of Cards, Hemlock Grove, Arrested Development,andOrange is the New Black.

Netflixs contentThe company also plans to limit its content to shows that have long-term value (e.g. shows you can re-watch often) and shows that are in high demand. Netflix wont always have the most complete library of content, but thats not necessarily a bad thing.As weve gained experience, weve realized that the 20th documentary about the financial crisis will mostly just take away viewing from the other 19 such docs, and instead of trying to have everything, we should strive to have the best in each category. As such, we are actively curating our service rather than carrying as many titles as we can.

Netflix also reiterated why its not interested in content that deals with current affairs, reality television, or sports. It has a strong commitment to scripted stories and documentaries. This could be part of why the company is choosing not to renew its licensing deal with Viacom but does want to strike separate deals to bring select shows to the Netflix library.Thoughts on competitionWe dont and cant compete on breadth with Comcast, Sky, Amazon, Apple, Microsoft, Sony, or Google. For us to be hugely successful we have to be a focused passion brand. Starbucks, not 7-Eleven. Southwest, not United. HBO, not Dish.

More specifically, competing with HBO, Hulu, and AmazonNetflix estimates that it will eventually grow its subscriber base to be about two to three times the size of HBO. That means the Netflix of the future will have 60 million to 90 million subscribers. That doesnt mean this will happen overnight. It also views services like Amazon Prime and Hulu as secondary competitors that wont be able to offer the scope of content that Netflix can at a comparable experience.Behind HBO would come Amazon/Lovefilm/Prime, Hulu, Now TV, and many cable and broadcast networks in various territories. Amazon in particular is spending heavily and commissioning its own original programming, presumably because they see the same exciting big picture for Internet TV that we do. Many consumers will subscribe to multiple services if they each have unique compelling content. Success relative to these competitors-for-content would be us having substantially larger revenue and therefore sustainable increasing content, tech and marketing spending, leading to further growth, and a virtuous cycle.Other News