Earnings: Netflix Q3 Revs Rise 16 Percent; Net Income Gains 30 Percent
This story was written by David Kaplan.
Netflix (NSDQ: NFLX) Q3 revenues came in at $341 million, up 16 percent year-over-year from Q307's $294 million. Meanwhile, GAAP net income for the same period was $20.4 million ($0.33 per diluted share), compared to $15.6 million ($0.23 per diluted share) the year beforea 30 percent gain. Gross profit also grew, rising 8.4 percent to $116 million from Q307's $107 million. Other highlights from Netflix's Q3 included:
-- Subscriber acquisition cost was $32.21 per gross subscriber addition, compared to $37.89 for the same period of 2007 and $28.89 for the second quarter of 2008.
-- Churn was 4.2 percent, the same as it was last year and Q208.
-- Free cash flow was $26.2 million, compared to $36.2 million the previous year.
-- Outlook: Netflix expects to end Q4 with 8.85 million to 9.15 million subs, down from 8.95 million to 9.25 million. Next quarter's revenue is expected to range from $351 million to $357 million, down slightly from $353 million to $359 million, with GAAP net income between $18 million to $23 million, unchanged from prior guidance.
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By David Kaplan