NetFlix 2004 Annual Report Download - page 65

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NETFLIX, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
Year Ended December 31,
2002 2003 2004
Revenues:
Subscription ................................................ $150,818 $270,410 $500,611
Sales ...................................................... 1,988 1,833 5,617
Totalrevenues .......................................... 152,806 272,243 506,228
Cost of revenues:
Subscription ................................................ 77,044 147,736 273,401
Sales ...................................................... 1,092 624 3,057
Totalcostofrevenues .................................... 78,136 148,360 276,458
Gross profit 74,670 123,883 229,770
Operating expenses:
Fulfillment* ................................................ 19,366 31,274 56,609
Technology and development* ................................. 14,625 17,884 22,906
Marketing* ................................................. 35,783 49,949 98,027
General and administrative* ................................... 6,737 9,585 16,287
Stock-based compensation ..................................... 8,832 10,719 16,587
Total operating expenses .................................. 85,343 119,411 210,416
Operating income (loss) ........................................... (10,673) 4,472 19,354
Other income (expense):
Interest and other income ...................................... 1,697 2,457 2,592
Interest and other expense ..................................... (11,972) (417) (170)
Netincome(loss)beforeincometaxes ............................... (20,948) 6,512 21,776
Provision for income taxes ......................................... — — 181
Netincome(loss) ................................................ $(20,948) $ 6,512 $ 21,595
Net income (loss) per share:
Basic ...................................................... $ (0.74) $ 0.14 $ 0.42
Diluted .................................................... $ (0.74) $ 0.10 $ 0.33
Weighted-average common shares outstanding:
Basic ...................................................... 28,204 47,786 51,988
Diluted .................................................... 28,204 62,884 64,713
* Amortization of stock-based compensation not included in expense line
items:
Fulfillment ................................................. $ 1,055 $ 1,349 $ 1,702
Technology and development .................................. 3,007 3,979 6,561
Marketing .................................................. 1,640 1,586 2,507
General and administrative .................................... 3,130 3,805 5,817
Total stock-based compensation ................................ $ 8,832 $ 10,719 $ 16,587
See accompanying notes to consolidated financial statements.
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