NetFlix 2004 Annual Report Download - page 4
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Please find page 4 of the 2004 NetFlix annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.LettertoShareholders
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ReedHastings
ChiefExecutiveOfficer,
PresidentandCo-Founder
Inourfirstannualreportfollowingourinitialpublicoffering
in2002—ayearinwhichourrevenuesdoubledto$153million
andsubscribersincreased88percentto857,000—Itoldyou
thatNetflixhadexperiencedthetypeofrapidgrowththatmany
youngcompaniespromise,butfewdeliver.
Today,I’mproudtoreportthatwe’vesustainedtherapid
growthweachievedasanewlypubliccompanytwoyearsago.
Since2002,revenuesandsubscribershavemorethantripled,
to$506millionand2.61millionsubscribers,withrevenuesup
86percentandsubscribersup76percentin2004.Moreover,
wecontinuedtofaroutdistancecompetitorsinthemarket
weinvented,accountingforapproximately80percentofall
U.S.onlinemovierentalsduring2004.
Afterachievingourfirstnetprofitin2003,GAAPnetincome
morethantripledin2004,reaching$21.6million,andfreecash
flowincreased30percentto$34.8million.
Fastandfreedelivery.Netflixmembersenjoyfreeshippingbothways.Ourproprietarylogisticssystem
includes30distributioncentersthroughouttheUnitedStates,whichallowsustoprovidemorethan85percent
ofournearly3millionsubscriberswithdeliveryoftheirDVDswithinaboutonebusinessdayfollowingshipment.
2004 A N N UAL R E P OR T