Slide 1: Q1'10 Financial Highlights
Q1’10 Financial Highlights | April 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: Q1 Results
Q1 Results Actual Q1’10 Guidance $490m $496m 13,500k 13,800k $26m $32m 13,967k $493.7m $32.3m Subscribers Revenue GAAP Net Income
Slide 5: Subscriber Growth
(in thousands) Netflix Subscribers Subscriber Growth
Slide 6: Record Net Additions
Record Net Additions (in thousands) Net Subscriber Additions
Slide 7: Q1 Revenue
Note: Netflix implemented price reductions in July 2007 Q1 Revenue (in millions) Total Revenue
Slide 8: GAAP Net Income & Fully Diluted EPS
Q1 GAAP Net Income & Fully Diluted EPS (in millions) Net Income Earnings per Share
Slide 9: 1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10
2% 4.2% 4.2% 4.2% 1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 WETF UN
Slide 10: Subscriber Acquisition Cost
Subscriber Acquisition Cost
Slide 11: Non-GAAP Free Cash Flow
1Q09 2Q09 3Q09 4Q09 1Q10 Free Cash Flow Non-GAAP Free Cash Flow Reconciliation: Net cash provided by operating activities $65,633 $75,302 $78,311 $105,817 $75,412 Purchases of property and equipment (6,572) (6,933) (9,994) (22,433) (6,393) Acquisition of intangible asset (200) – – – (130) Acquisitio
Slide 12: Business Outlook
2Q10 FY ’10 Subscribers 14.7 – 15.0M 16.5 – 17.3M Revenue $517 – 525M $2.11 – 2.16B GAAP Net Income $34 – 40M $132 – 144M GAAP EPS* $0.62 – 0.73 $2.41 – 2.63 *Fully Diluted Business Outlook
Slide 13: Quarterly Summary Financials
1Q09 2Q09 3Q09 4Q09 1Q10 Mid-point of Guidance 2Q10 Subscribers (M) 10.3 10.6 11.1 12.3 14.0 14.9 Y/Y Change 25% 26% 28% 31% 35% 40% Revenue (M) $394 $409 $423 $445 $494 $521 Y/Y Change 21% 21% 24% 24% 25% 28% Operating Profit (M) $36 $53 $49 $53 $58 -- Y/Y Change 138% 54% 45% 41% 60% Net Income (M)
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 16.9 Y/Y Change 60% 51% 18% 26% 31% 38% Revenue (M) $682 $997 $1,205 $1,365 $1,670 $2,135 Y/Y Change 36% 46% 21% 13% 22% 28% Operating Profit (M) $3 $65 $92 $122 $192 -- Y/Y Change -86% 2387% 41% 32% 58% Net Inc
Slide 15: Q1'10 Financial Highlights
Q1’10 Financial Highlights | April 21, 2010