NetFlix 2008 Annual Report Download - page 53

Download and view the complete annual report

Please find page 53 of the 2008 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.

Page out of 84

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84

NETFLIX, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
Year ended December 31,
2008 2007 2006
Revenues ................................................... $1,364,661 $1,205,340 $996,660
Cost of revenues:
Subscription ............................................. 761,133 664,407 532,621
Fulfillment expenses* ..................................... 149,101 121,761 94,364
Total cost of revenues ................................. 910,234 786,168 626,985
Gross profit .................................................. 454,427 419,172 369,675
Operating expenses:
Technology and development* .............................. 89,873 70,979 47,831
Marketing* .............................................. 199,713 218,212 225,436
General and administrative* ................................ 49,662 52,404 35,987
Gain on disposal of DVDs .................................. (6,327) (7,196) (4,797)
Gain on legal settlement .................................... — (7,000) —
Total operating expenses ............................... 332,921 327,399 304,457
Operating income ............................................. 121,506 91,773 65,218
Other income (expense):
Interest expense on lease financing obligations .................. (2,458) (1,188) (1,210)
Interest and other income (expense) .......................... 12,452 20,340 15,904
Income before income taxes ..................................... 131,500 110,925 79,912
Provision for income taxes ...................................... 48,474 44,317 31,073
Net income .................................................. $ 83,026 $ 66,608 $ 48,839
Net income per share:
Basic ................................................... $ 1.36 $ 0.99 $ 0.78
Diluted ................................................. $ 1.32 $ 0.97 $ 0.71
Weighted-average common shares outstanding:
Basic ................................................... 60,961 67,076 62,577
Diluted ................................................. 62,836 68,902 69,075
* Amortization of stock-based compensation included in expense line items:
Fulfillment expenses ...................................... $ 466 $ 427 $ 925
Technology and development ............................... 3,890 3,695 3,608
Marketing ............................................... 1,886 2,160 2,138
General and administrative ................................. 6,022 5,694 6,025
See accompanying notes to consolidated financial statements.
F-4