NetFlix 2003 Annual Report Download - page 26

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Item 6. Selected Financial Data
The following selected financial data is not necessarily indicative of results of future operations and should
be read in conjunction with “Item 7. Management’s Discussion and Analysis of Financial Condition and Results
of Operations” and “Item 8. Financial Statements and Supplementary Data.”
Year Ended December 31,
1999 2000 2001 2002 2003
(in thousands, except per share data)
Statement of Operations Data:
Revenues:
Subscription .............................. $ 4,854 $35,894 $74,255 $150,818 $270,410
Sales .................................... 152 — 1,657 1,988 1,833
Totalrevenues ........................ 5,006 35,894 75,912 152,806 272,243
Cost of revenues:
Subscription .............................. 4,217 24,861 49,088 77,044 147,736
Sales .................................... 156 — 819 1,092 624
Totalcostofrevenues .................. 4,373 24,861 49,907 78,136 148,360
Grossprofit................................... 633 11,033 26,005 74,670 123,883
Operating expenses:
Fulfillment ............................... 2,446 10,247 13,452 19,366 31,274
Technology and development ................ 7,413 16,823 17,734 14,625 17,884
Marketing ................................ 14,070 25,727 21,031 35,783 49,949
General and administrative .................. 1,993 6,990 4,658 6,737 9,585
Restructuring charges ....................... — — 671 — —
Stock-based compensation ................... 4,846 9,714 6,250 8,832 10,719
Total operating expenses ................ 30,768 69,501 63,796 85,343 119,411
Operating income (loss) ......................... (30,135) (58,468) (37,791) (10,673) 4,472
Other income (expense):
Interest and other income .................... 924 1,645 461 1,697 2,457
Interest and other expense ................... (738) (1,451) (1,852) (11,972) (417)
Netincome(loss) .............................. $(29,949) $(58,274) $(39,182) $ (20,948) $ 6,512
Net income (loss) per share:
Basic .................................... $ (10.74) $ (20.61) $ (10.73) $ (0.74) $ 0.14
Diluted .................................. $ (10.74) $ (20.61) $ (10.73) $ (0.74) $ 0.10
Weighted-average shares outstanding:
Basic .................................... 2,788 2,828 3,652 28,204 47,786
Diluted .................................. 2,788 2,828 3,652 28,204 62,884
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