NetFlix 2014 Annual Report Download - page 73

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Table of Contents
64
(1)
A membership (also referred to as a subscription) is defined as the right to receive either the Netflix streaming service or Netflix DVD
service. Memberships are assigned to territories based on the geographic location used at time of sign up as determined by the
Company's internal systems, which utilize industry standard geo-location technology. The Company offers free-trial memberships to
new and certain rejoining members. For inclusion in the definition of a member in the above metrics, a method of payment is required
to be provided even during the free-trial period. Total members therefore include those who are on a free-trial and have provided a
method of payment. A membership is canceled and ceases to be reflected in the above metrics as of the effective cancellation date.
Voluntary cancellations become effective at the end of the prepaid membership period, while involuntary cancellation of the service,
as a result of a failed method of payment, becomes effective immediately.
13.
Selected Quarterly Financial Data (Unaudited)
December 31
September 30
June 30
March 31
(in thousands, except for per share data)
2014
Total revenues
$
1,484,728
$
1,409,432
1,340,407
1,270,089
Gross profit
470,396
455,038
425,559
400,903
Net income
83,371
59,295
71,018
53,115
Earnings per share:
Basic
$
1.38
$
0.99
1.18
0.89
Diluted
1.35
0.96
1.15
0.86
2013
Total revenues
$
1,175,230
$
1,105,999
1,069,372
1,023,961
Gross profit
354,553
307,099
308,698
287,009
Net income (loss)
48,421
31,822
29,471
2,689
Earnings (loss) per share:
Basic
$
0.81
$
0.54
0.51
0.05
Diluted
0.79
0.52
0.49
0.05