Netflix Announces Q1 2010 Financial Results

LOS GATOS, Calif., April 21, 2010 /PRNewswire via COMTEX/ -- Netflix, Inc. /quotes/comstock/15*!nflx/quotes/nls/nflx (NFLX 100.67, +13.69, +15.74%) today reported results for the first quarter ended March 31, 2010.

"Our growth continued to accelerate in the first quarter, with record net subscriber additions and record-low subscriber acquisition cost," said Netflix co-founder and CEO Reed Hastings. "It is clear that our performance, and the overall appeal of the Netflix service, is being driven by subscribers watching instantly. On that score, we reached a milestone in the quarter as more than half of all members - 55 percent and growing - enjoyed movies and TV episodes streamed from Netflix over the Internet."

First-Quarter 2010 Financial Highlights

Subscribers. Netflix ended the first quarter of 2010 with approximately 13,967,000 total subscribers, representing 35 percent year-over-year growth from 10,310,000 total subscribers at the end of the first quarter of 2009 and 14 percent sequential growth from 12,268,000 subscribers at the end of the fourth quarter of 2009.

Net subscriber change in the quarter was an increase of 1,699,000 compared to an increase of 920,000 for the same period of 2009 and an increase of 1,159,000 for the fourth quarter of 2009.

Gross subscriber additions for the quarter totaled 3,492,000, representing 45 percent year-over-year growth from 2,413,000 gross subscriber additions in the first quarter of 2009 and 25 percent quarter-over-quarter growth from 2,803,000 gross subscriber additions in the fourth quarter of 2009.

Of the 13,967,000 total subscribers at quarter end, 98 percent, or 13,622,000, were paid subscribers. The other 2 percent, or 345,000, were free subscribers. Paid subscribers represented 98 percent of total subscribers at the end of the first quarter of 2009 and 97 percent at the end of the fourth quarter of 2009.

Revenue for the first quarter of 2010 was $493.7 million, representing 25 percent year-over-year growth from $394.1 million for the first quarter of 2009, and 11 percent sequential growth from $444.5 million for the fourth quarter of 2009.

Gross margin(1) for the first quarter of 2010 was 37.8 percent compared to 34.2 percent for the first quarter of 2009 and 38.0 percent for the fourth quarter of 2009.

GAAP net income for the first quarter of 2010 was $32.3 million, or $0.59 per diluted share compared to GAAP net income of $22.4 million, or $0.37 per diluted share, for the first quarter of 2009 and GAAP net income of $30.9 million, or $0.56 per diluted share, for the fourth quarter of 2009. GAAP net income grew 44 percent on a year-over-year basis and GAAP EPS grew 59 percent on a year-over-year basis.

Percentage of subscribers who watched instantly more than 15 minutes of a TV episode or movie in the first quarter of 2010 was 55 percent compared to 36 percent for the same period of 2009 and 48 percent for the fourth quarter of 2009.

Subscriber acquisition cost(2) for the first quarter of 2010 was $21.54 per gross subscriber addition compared to $25.79 for the same period of 2009 and $25.23 for the fourth quarter of 2009.

Churn(3) for the first quarter of 2010 was 3.8 percent compared to 4.2 percent for the first quarter of 2009 and 3.9 percent for the fourth quarter of 2009. Churn includes free subscribers as well as paying subscribers who elect not to renew their monthly subscription service during the quarter.

Free cash flow(4) for the first quarter of 2010 was $35.8 million compared to $15.1 million for the first quarter of 2009 and $30.2 million for the fourth quarter of 2009.

Last twelve-month free cash flow for the first quarter of 2010 was $117.8 million compared to $105.0 million for the first quarter of 2009 and $97.1 million for the fourth quarter of 2009.

Cash provided by operating activities for the first quarter of 2010 was $75.4 million compared to $65.6 million for the first quarter of 2009 and $105.8 million for the fourth quarter of 2009.

Business Outlook

The Company's performance expectations for the second quarter of 2010 and full-year 2010 are as follows:

Second-Quarter 2010

Ending subscribers of 14.7 million to 15.0 million

Revenue of $517 million to $525 million

GAAP net income of $34 million to $40 million

GAAP EPS of $0.62 to $0.73 per diluted share

Full-Year 2010

Ending subscribers of 16.5 million to 17.3 million, up from 15.5 million to 16.3 million

Revenue of $2.11 billion to $2.16 billion, up from $2.05 billion to $2.11 billion

GAAP net income of $132 million to $144 million, up from $125 million to $137 million

GAAP EPS of $2.41 to $2.63 per diluted share, up from $2.28 to $2.50 per diluted share

Earnings Q&A Session

In conjunction with this earnings press release, the Company has posted management's commentary to its Web site at http://ir.netflix.com. Netflix management will host a live Q&A session at 3:00 p.m. Pacific Time to discuss the Company's financial results and business outlook, with questions submitted via email. Please email your questions to ir@netflix.com. (Please note this new email address). The company will read the questions aloud on the call and respond to as many questions as possible. All media inquiries should be directed to Steve Swasey at (408) 540-3947 or sswasey@netflix.com.

A live webcast and the replay of the earnings Q&A session can be accessed on the investor relations section of the Netflix website at http://ir.netflix.com. For those without access to the Internet, a replay of the call will be available from 6:00 p.m. Pacific Time on April 21, 2010 through midnight on April 24, 2010. To listen to the replay, call (706) 645-9291, conference ID 67441533.

Use of Non-GAAP Measures

This press release and its attachments include reference to non-GAAP financial measures of free cash flow and non-GAAP net income. Management believes that non-GAAP net income is a useful measure of operating performance because it excludes the non-cash impact of stock option accounting. In addition, management believes that free cash flow is a useful measure of liquidity because it excludes the non-operational cash flows from purchases and sales of short-term investments, cash flows from investment in business and cash flows from financing activities. However, these non-GAAP measures should be considered in addition to, not as a substitute for or superior to, net income and net cash provided by operating activities, or other financial measures prepared in accordance with GAAP. A reconciliation to the GAAP equivalents of these non-GAAP measures is contained in tabular form on the attached unaudited financial statements.

About Netflix

With more than 13 million members, Netflix, Inc. /quotes/comstock/15*!nflx/quotes/nls/nflx (NFLX 100.67, +13.69, +15.74%) is the world's largest subscription service streaming movies and TV episodes over the Internet and sending DVDs by mail. For $8.99 a month, Netflix members can instantly watch unlimited TV episodes and movies streamed to their TVs and computers and can receive unlimited DVDs delivered quickly to their homes. With Netflix, there are never any due dates or late fees. Members can select from a growing library of titles that can be watched instantly and a vast array of titles on DVD. Among the large and expanding base of devices that can stream movies and TV episodes from Netflix right to members' TVs are Microsoft's Xbox 360 and Sony's PS3 game consoles and Nintendo's Wii console; Blu-ray disc players from Samsung, LG and Insignia; Internet TVs from LG, Sony and VIZIO; the Roku digital video player and TiVo digital video recorders; and Apple's iPad tablet. For more information, visit http://www.netflix.com.

Forward-Looking Statements

This press release contains certain forward-looking statements within the meaning of the federal securities laws, including statements regarding our subscriber growth, revenue, GAAP net income and earnings per share for the second quarter of 2010 and the full-year 2010. The forward-looking statements in this release are subject to risks and uncertainties that could cause actual results and events to differ, including, without limitation: our ability to attract new subscribers and retain existing subscribers; our ability to manage our subscriber acquisition cost as well as the cost of content delivered to our subscribers; fluctuations in consumer usage of our service; the continued availability of content on terms and conditions acceptable to us; maintenance and expansion of device platforms for instant streaming; continued weakness in the U.S. economy and its affect on online commerce or the filmed entertainment industry; conditions that effect our delivery through the U.S. Postal Service, including regulatory changes and postal rate increases; changes in the costs of acquiring DVDs or electronic content; consumer spending on DVDs and related products; disruption in service on our website or with our computer systems; competition and widespread consumer adoption of different modes of viewing in-home filmed entertainment. A detailed discussion of these and other risks and uncertainties that could cause actual results and events to differ materially from such forward-looking statements is included in our filings with the Securities and Exchange Commission, including our Annual Report on Form 10-K filed with the Securities and Exchange Commission on February 22, 2010. We undertake no obligation to update forward-looking statements to reflect events or circumstances occurring after the date of this press release.

(1 )Gross margin is defined as revenues less cost of subscription and fulfillment expenses divided by revenues.

(2) Subscriber acquisition cost is defined as the total marketing expense, which includes stock-based compensation for marketing personnel, on the Company's Condensed Consolidated Statements of Operations divided by total gross subscriber additions during the quarter.

(3) Churn is a monthly measure defined as customer cancellations in the quarter divided by the sum of beginning subscribers and gross subscriber additions, then divided by three months.

(4) Free cash flow is defined as cash provided by operating activities and investing activities excluding the non-operational cash flows from purchases and sales of short-term investments and cash flows from investment in business.  

Die 140 sollte noch geknackt werden können.  

      Mich wundert eigentlich , das hier so wenig los ist im Thread.
Ich bin erst gestern durch das Apple Event auf Netflix richtig  aufmerksam geworden, nachdem ich noch ein wenig recherchiert habe.

Mir war Netflix bekannt, aber ich wußte garnicht, das der Laden so  brummt. Ich dachte die verschicken immernoch nur die DVDs per POST.
Aber das Netflix mittlerweile auf soo vielen Komponenten zu empfangen ist , ist ja absolut genial .
Der neuste Deal mit dem neuen Apple TV und den 3 neuen FilmStudios zeigt noch mehr, das das Management nur ein Ziel hat.

Auch die Ankündigung eines Apps für Android klingt gut. Zudem die Expansion nach Kanada.

Bin gestern direkt noch eingestiegen, da ich glaube das das die Zukunft weltweit sein wird.
Zudem könnte die Expansion von Netflix in andere Länder ( wenn man den die Lizenzen bekommt ) unheimlich bewegung in die  Aktie  bringen.

Gefällt mir der Laden ...      

 

Ja, das Forum hat stark an Wert verloren, finde ich. Es werden nur noch überflüssige Sachen diskutiert. Wenn man über Aktien oder andere Wertschriften diskutieren will, ist man hier fast am falschen Ort. Bin deswegen passiv hier.

So, morgen werden sehr wahrscheinlich die 140 geknackt.  Ich bin immer noch drin und denke dass morn der Dow auch super performen wird.  

Habe mal zu Netflix nen BlogEintrag erstellt : 

www.boersenpoint.de/blog/...hon-da-und-kaum-einer-merkt-es-in-europa/

 

Anscheinend scheint sich niemand hier großartig für dieses geniale Unternehmen zu interessieren ... Bzw nur wenig ...

Gestern wurde NETFlix in Kanada gestartet ... deshalb der mächtige Schub gestern und heute

IN meinen Augen wird Netflix zum " Giganten " in dieser Branche ... Und Kanada ist gerade mal das erste Land , in das expandiert wird ...

Ich gehe hier von Potential ohne Ende aus !

 

Ja, ich glaube auch, dass NFLX  noch viel Potential hat: neue Märkte, schwächelnde Konkurrenz (blockbuster) und Übernahmephantasie. Eigentlich alles was es braucht!!
Hier noch ein guter Link:

http://www.thestreet.com/_yahoo/story/10870014/1/...REE&cm_ite=NA  

SAN FRANCISCO (AP) -- Netflix Inc.'s video subscription service won another horde of new fans in the third quarter, overshadowing a rare earnings shortfall.

The addition of 1.9 million subscribers seemed to matter far more to investors than an earnings figure that was a penny below analyst estimates. Netflix shares surged by more than 9 percent after the numbers came out.

Netflix earned $38 million, or 70 cents per share. That's up 26 percent from $30.1 million, or 52 cents per share, at the same time last year.

Analysts, on average, had projected third-quarter earnings of 70 cents per share, based on a Thomson Reuters poll.

Revenue rose 31 percent from last year to $553 million, $2 million above analyst forecasts.

The company, based in Los Gatos, needs to show the popularity of its service won't be a short-lived phenomenon to support a stock that has nearly tripled in price so far this year. The shares ended Wednesday's regular session at $153.15 before adding $14.05 in extended trading.

The third quarter, which spans Netflix's traditionally sluggish season, went a long way toward proving the company's staying power.

The 16.9 million subscribers that Netflix boasted at the end of September was 200,000 above the best-case scenario projected by the company three months ago.

Management expects to gain another 2.1 million to 2.9 million customers by year's end. That means Netflix could enter 2011 with more than 19 million subscribers, doubling the service's size in two years.

The explosive growth has coincided with Netflix's efforts to expand an Internet video streaming library that initially was designed to supplement the DVD-by-mail service that it launched in 1999.

With high-speed online access now becoming a household staple and an array of gadgets making it easier to connect high-definition TVs to the Web, Netflix is about to reach a tipping point in its evolution as Internet streaming goes mainstream.

At some point in the fourth quarter, Netflix CEO Reed Hastings predicted the company's subscribers collectively will watch more hours of video streamed on the Web than on DVD players. That transition is expected to lower the amount of money Netflix spends for the postage to deliver DVDs, something that should eventually help boost Netflix's earnings.

For now, though, Netflix is spending heavily to obtain the streaming rights to more movies and TV shows to help lure more customers and shift more of its existing subscribers away from DVDs.

In the third quarter, Netflix spent $115 million on video streaming rights, up from just $10 million at the same time last year. Meanwhile, spending on DVDs dropped 35 percent from a year ago to just under $30 million in the third quarter.

Netflix's streaming service has become so popular that it is now the largest source of online traffic in the U.S. during peak evening hours, according to a report released Wednesday by Sandvine Inc., a Canadian company that supplies traffic-management equipment to Internet service providers.

Netflix accounts for 20.6 percent of peak traffic to Internet users, more than double that of Google Inc.'s YouTube, Sandvine said.

The streaming service may start hogging Internet bandwidth in Canada too. Netflix introduced a streaming-only plan priced at $8 per month in Canada late in the third quarter. In the U.S., Netflix's plans for DVDs and unlimited streaming start at $9 per month. The company is experimenting with offering an streaming-only option in the U.S., too.

AP Technology Writer Barbara Ortutay in New York contributed to this report.  

Hallo
gibt es in D handelbare Put-Scheine zu Netflix?  

hier sind meine Scheine ;)

K.O. Schein : OE Turbo Bear auf Netflix   WKN: CG5C32ISIN: DE000CG5C329

Optionsschein: Optionsschein auf Netflix   WKN: CG4D0HISIN: DE000CG4D0H5

wünsche einen guten Rutsch

Hummel

Netflix beabsichtigt den Expansionskurs auch auf internationaler Ebene voranzutreiben. Ich sehne mich schon seit langem nach einem auf mich zugeschnittenen Filmangebot, d.s. vor allem unsynchronisierte Filme im Originalton. Keiner will mein Geld, sei es Hulu, Amazon INstant Video oder Netflix - lediglich Apple (sowie einschränkend Maxdome) bietet ab und an auf iTunes zu Mondpreisen gescheite Filme an. Bleibt noch das illegale Streamingangebot oder der Weg über VPNs, um das Geoblocking zu umgehen.  Wie lange wird sich die Branche noch diesen Luxus leisten können?  

wohl drinnen ! seit 7.märz + 53% !!!

 

Netflix, Inc. announced it will post its second-quarter 2011 financial results and business outlook on its investor relations website on Monday, July 25, 2011, at approximately 1:05 p.m. Pacific Time.

Oppenheimer hat das Kursziel auf 360 USD angehoben.  

interessanter artikel

http://www.marketwatch.com/story/is-netflix-doomed-2011-09-19

denke dass wir bald wieder 3stellig werden - Verlust der letzten Wochen war zu krass
was denkt ihr ?  

mal auf meine Watchlist gelandet. Ist aber ein schwieriges Business, in dem man auch wieder ganz schnell weg vom Fenster sein kann.  

http://www.pcwelt.de/news/...r-machen-Netflix-Konkurrenz-3523758.html

 

 

 

NEW YORK (CNNMoney) -- For Netflix, the hits keep on coming -- the bad kind.

The latest thwack: Netflix lost 800,000 U.S. subscribers in the quarter that just ended, which was littered with PR nightmares including a price hike and the Qwikster debacle. It was the first time in years that Netflix's U.S. customer base shrank instead of growing.

   Print
   Comment

Netflix spoke bluntly about the recent problems in its third-quarter earnings letter, released late Monday.

"The last few months...have been difficult for shareholders, employees, and most unfortunately, many members of Netflix," Netflix CEO Reed Hastings wrote in a letter to shareholders. "We've hurt our hard-earned reputation, and stalled our domestic growth."

Netflix said it was focusing on the future, promising customers that "we are done with pricing changes." But it doesn't think the subscriber hemorrhaging is at an end.

Netflix had 23.8 million total U.S. subscribers as of Sept. 30, down from 24.6 million three months earlier. Around 21.5 million customers had streaming subscriptions, and just under 14 million had DVD subscriptions, with most customers mixing the two.

By the end of the ongoing quarter, which wraps up Dec. 31, Netflix expects those numbers to drop further. It forecast that it will have 20 million to 21.5 million streaming customers and up to 11.3 million DVD subscribers in the U.S.

Netflix shares plunged 27% in after-hours trading, though the company reported earnings that beat analysts' expectations. Netflix earned $62 million, or $1.16 a share, on a record $822 million in revenue.

The company also warned shareholders that it will be unprofitable in coming quarters.

Netflix said earlier on Monday that it will expand its streaming video service into the United Kingdom and Ireland. In its earnings letter later in the day, Netflix said that expansion will make the company's overall business unprofitable "for a few quarters" starting at the beginning of 2012.

Netflix said it will hit pause on its international expansion after its U.K. and Ireland launches "until we return to global profitability."

Netflix ended the quarter with $366 million in cash on hand, down from $376 million at the end of its previous quarter.

A nightmarish third quarter: Netflix's (NFLX) quarter started off badly in July, when the company angered many subscribers by saying it would begin charging separate prices for its DVDs-by-mail and streaming video plans. That amounted to a big price hike for Netflix customers, as the cheapest-possible bill for customers who want both services jumped from $10 to $16 a month.

Enraged customers flooded Netflix's site with tens of thousands of comments, as well as a barrage of tweets under the hashtag #DearNetflix.

Netflix acknowledged the anger in its release Monday, saying, "We compounded the problem with our lack of explanation about the rising cost of the expansion of streaming content ... [so] many perceived us as greedy."

One analyst predicts that Netflix's streaming content licensing costs will rise from $180 million in 2010 to a whopping $1.98 billion in 2012.

"Our primary issue is many of our long-term members felt shocked by the pricing changes, and more of them have expressed that by canceling Netflix than we expected," Netflix wrote.

As a result of the price hike anger, on September 15 Netflix was forced to cut its U.S. third-quarter subscriber estimates by 1 million customers, or about 4%, to 24 million. Shares plunged 19% that day.

But the real debacle came just three days later, on September 18. Netflix CEO Hastings announced that the company's movies-by-mail service would be rebranded as Qwikster, while the Netflix brand would be dedicated to streaming video.

Still smarting from the price hike, customers were incensed. They raged against the idea of managing two separate accounts -- so much so that Netflix pulled a stunning reversal a few short weeks later and canceled the Qwikster plan.

"Consumers value the simplicity Netflix has always offered and we respect that," Hastings said on October 10. "There is a difference between moving quickly -- which Netflix has done very well for years -- and moving too fast, which is what we did in this case."

Many pundits and customers were shocked by the flip-flop, which led some to wonder about the company's long-term vision.

And so Netflix has begun its fiscal fourth quarter under a dark cloud.

Streaming catalog woes: Meanwhile, Netflix is struggling to build and maintain a robust streaming catalog. In September, pay-cable network Starz ended contract renewal negotiations with Netflix and announced it will pull its movies and TV shows from Netflix early next year, yanking away one of Netflix's key sources of relatively recent movies.

Studios are demanding more money for their valuable content, and now they have a bargaining chip in the form of Netflix's competitors. Beyond direct rivals like Hulu and kiosk service Redbox (owned by Coinstar (CSTR)), big tech players like Amazon (AMZN, Fortune 500) and Google (GOOG, Fortune 500) are jumping into the streaming game. To top of page
First Published: October 24, 2011: 4:30 PM ET  

October 25, 2011

SAN FRANCISCO – Netflix jolted its shareholders again with a third-quarter financial report that portrayed a company in crisis.

The video subscription service’s latest blooper reel, released Monday, included an even larger customer exodus than the company had foreseen after announcing a price increase in July. What’s worse, the report contained a forecast calling for more defections during the next few months.

The backlash will deprive Netflix Inc. of some of the revenue that management had been counting on to finance the company’s expansion plans while it pays higher fees for Internet video streaming rights. The result: Netflix expects to post losses next year when it starts selling its streaming service in Britain and Ireland. The company didn’t offer further specifics beyond saying it won’t go into any other overseas markets until it’s making money again.

None of the developments pleased Wall Street as Netflix lost more than a quarter of its value after the bad news came out.

Netflix shares shed $32.01, or nearly 27 percent, to $86.83 in Monday’s extended trading.

It’s the latest setback for a former stock market darling whose shares topped $300 just 4-  1/2 months ago. Netflix’s market value had already plunged by about 60 percent, or nearly $9 billion, before Monday’s late sell-off.

Netflix lost its luster among consumers and investors by raising prices as much as 60 percent in the U.S. and bungling an attempt to spin off its DVD-by-mail service.

Raising the prices had to be done, according to Netflix CEO Reed Hastings. He said, however, that Netflix should have taken more time to explain to subscribers that the company needed the money to pay movie and television studios for rights to stream more video over high-speed Internet connections.

“We became a symbol of the evil, greedy corporation,” Hastings said Monday.  

Ein erfolgreiches Geschäftskonzept wird von der Führungsebene gegen den Willen der Aktionäre kaputt gemacht!

leider zu erwarten

dieser Hastings. Er gibt offen zu, daß er die Kunden verarschen wollte und es "leider" nicht geklappt hat. Wie kann man nur so dumm sein? Für Ehrlichkeit gibts nen Punkt, für Dummheit aber noch mehr und für das Management leider überhaupt keinen.

Der Typ wollte entweder absichtlich mit der Aktion den Kurs kippen um die Erfolgsstory zu wiederholen (verlorene Kunden kann man ja wieder zurückholen) oder aber er ist einfach wirklich nur saudumm....die Investoren werden die nächsten Tage mit Sicherheit weiter abbauen sobald einige vermeintliche Schnäppchenjäger ihre Chance wittern...

 

900.000 verlorene Kunden ist schon eine Ansage.

Die Benutzer werden schon auch lernen, dass es noch mehr Portale wie kino.to gibt, auf denen der Stream gar nichts kostet.

Die werden in wenigen Jahren eine 2. Blockbuster werden