NetFlix 2002 Annual Report Download - page 52

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INDEPENDENT AUDITORS’ REPORT
The Board of Directors and Stockholders
Netflix, Inc.
We have audited the accompanying balance sheets of Netflix, Inc. (formerly known as NetFlix.com, Inc.) as of December 31, 2001 and 2002, and the related statements of operations,
stockholders’ (deficit) equity and comprehensive loss, and cash flows for each of the years in the three−year period ended December 31, 2002. These financial statements are the
responsibility of the Company’s management. Our responsibility is to express an opinion on these financial statements based on our audits.
We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures
in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Netflix, Inc. as of December 31, 2001 and 2002, and the results of its
operations and its cash flows for each of the years in the three−year period ended December 31, 2002, in conformity with accounting principles generally accepted in the United States of
America.
/s/ KPMG LLP
Mountain View, California
January 14, 2003
F−2