Slide 1: Q2'10 Financial Highlights
Q2’10 Financial Highlights | July 21, 2010
Slide 2: Forward-Looking Statements and Non-GAAP Financial Measurements
This presentation contains forward-looking statements relating to future events or future financial performance that involve risks and uncertainties. Actual results may differ materially from those anticipated in these statements based on a number of factors, including those identified in the compan
Slide 3: Netflix Goals
Netflix Goals > Be a great Internet movie and TV show service by combining Internet streaming with DVD by mail > Materially grow subscribers and EPS every year
Slide 4: Q2 Results
Q2 Results Actual Q2’10 Guidance $517m $525m 14,700k 15,000k $34m $40m 15,001k $519.8m $43.5m Subscribers Revenue GAAP Net Income
Slide 5: Subscriber Growth
(in thousands) Netflix Subscribers Subscriber Growth
Slide 6: Net Subscriber Additions
Net Additions (in thousands) Net Subscriber Additions
Slide 7: Q2 Revenue
Note: Netflix implemented price reductions in July 2007 Q2 Revenue (in millions) Total Revenue
Slide 8: GAAP Net Income & Fully Diluted EPS
Q2 GAAP Net Income & Fully Diluted EPS (in millions) Net Income Earnings per Share
Slide 9: 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 Q09 3Q09 4Q09 1Q10 2Q10
R2% 4.2% 4.2% 4.2% 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 WETF UN
Slide 10: Subscriber Acquisition Cost
Subscriber Acquisition Cost
Slide 11: Non-GAAP Free Cash Flow Reconciliation
2Q09 3Q09 4Q09 1Q10 2Q10 Free Cash Flow Non-GAAP Free Cash Flow Reconciliation: Net cash provided by operating activities $75,302 $78,311 $105,817 $77,205 $60,252 Purchases of property and equipment (6,933) (9,994) (22,433) (6,393) (5,671) Acquisition of intangible asset - - - (130) - Acquisitions o
Slide 12: Business Outlook
3Q10 4Q10 FY ’10 Subscribers 16.3 – 16.7M 17.7 – 18.5M 17.7 – 18.5M Revenue $546 – 554M $580 – 596M $2.14 – 2.16B GAAP Net Income $33 – 40M $32 – 40M $141 – 156M GAAP EPS* $0.61 – 0.74 $0.58 – 0.73 $2.58 – 2.86 *Fully Diluted Business Outlook
Slide 13: Quarterly Summary Financials
1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 Subscribers (M) 10.3 10.6 11.1 12.3 14.0 15.0 Y/Y Change 25% 26% 28% 31% 35% 42% Revenue (M) $394 $409 $423 $445 $494 $520 Y/Y Change 21% 21% 24% 24% 25% 27% Operating Profit (M) $36 $53 $49 $53 $58 $77 Y/Y Change 138% 54% 45% 41% 60% 47% Net Income (M) $22 $32 $30 $31
Slide 14: Fiscal Year Summary Financials
2005 2006 2007 2008 2009 Mid-point of Guidance 2010 Subscribers (M) 4.2 6.3 7.5 9.4 12.3 18.1 Y/Y Change 60% 51% 18% 26% 31% 47% Revenue (M) $682 $997 $1,205 $1,365 $1,670 $2,150 Y/Y Change 36% 46% 21% 13% 22% 29% Operating Profit (M) $3 $65 $92 $122 $192 -- Y/Y Change -86% 2387% 41% 32% 58% Net Inc
Slide 15: Q2'10 Financial Highlights
Q2’10 Financial Highlights | July 21, 2010