Slide 1: Q3'10 Financial Highlights
Q3’10 Financial Highlights | October 20, 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: Q3 Results
Q3 Results Actual Q3’10 Guidance $546m $554m 16,300k 16,700k $33m $40m 16,933k $553.2m $38.0m Subscribers Revenue GAAP Net Income
Slide 4: Netflix Subscribers
(in thousands) Netflix Subscribers Subscriber Growth
Slide 5: Net Subscriber Additions
Net Additions (in thousands) Net Subscriber Additions
Slide 6: Q3 Revenue
Note: Netflix implemented price reductions in July 2007 Q3 Revenue (in millions) Total Revenue
Slide 7: GAAP Net Income & Fully Diluted EPS
Q3 GAAP Net Income & Fully Diluted EPS (in millions) Net Income Earnings per Share
Slide 8: 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1009 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10
2% 4.2% 4.2% 4.2% 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1009 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 WETF UN
Slide 9: Subscriber Acquisition Cost
Subscriber Acquisition Cost
Slide 10: Non-GAAP Free Cash Flow
3Q09 4Q09 1Q10 2Q10 3Q10 Free Cash Flow Non-GAAP Free Cash Flow Reconciliation: Net cash provided by operating activities $78,311 $105,817 $77,205 $60,252 $42,227 Purchases of property and equipment (9,994) (22,433) (6,393) (5,671) (7,342) Acquisition of intangible asset (130) (375) Acquisitions of
Slide 11: Business Outlook
4Q10 FY’10 Subscribers 19.0 – 19.7M 19.0 – 19.7M Revenue $586 – 598M $2.15 – 2.16B GAAP Net Income $32 – 40M $146 – 154M GAAP EPS* $0.59 – 0.74 $2.68 – 2.83 *Fully Diluted Business Outlook
Slide 12: Quarterly Summary Financials
2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 Subscribers (M) 10.6 11.1 12.3 14.0 15.0 16.9 Y/Y Change 26% 28% 31% 35% 42% 52% Revenue (M) $409 $423 $445 $494 $520 $553 Y/Y Change 21% 24% 24% 25% 27% 31% Operating Profit (M) $53 $49 $53 $58 $77 $70 Y/Y Change 54% 45% 41% 60% 47% 41% Net Income (M) $32 $30 $31 $32 $
Slide 13: 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 19.4 Y/Y Change 60% 51% 18% 26% 31% 58% Revenue (M) $682 $997 $1,205 $1,365 $1,670 $2,159 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 14: Q3'10 Financial Highlights
Q3’10 Financial Highlights | October 20, 2010