LOS GATOS, Calif., Oct. 6 /PRNewswire-FirstCall/ -- Netflix Inc.
(Nasdaq: NFLX) today announced updated guidance for the third and fourth
quarters of 2008.
Third-Quarter 2008
The company said it expects net income and EPS will be comfortably
within its previous guidance, which was GAAP net income of $16 million to
$21 million, and GAAP EPS of $0.26 to $0.34 per diluted share.
Excluding the one-time $6.5 million credit given to subscribers related
to the August service interruption, third-quarter revenue is also expected
to be within the company's previous guidance of $343 million to $348
million.
Netflix ended the third quarter with approximately 8.672 million
subscribers, just below the low end of its previous guidance of 8.675
million to 8.875 million subscribers. Subscribers grew 23 percent
year-over-year from 7,028,000 total subscribers at the end of the third
quarter of 2007 and 3 percent sequentially from 8,411,000 subscribers at
the end of the second quarter of 2008.
"Net subscriber growth in July was in line with expectations but August
was unusually weak", said CFO Barry McCarthy. "In September, the business
regained momentum with results slightly below original expectations, likely
due to the economic climate."
Fourth-Quarter 2008
The company revised guidance for the fourth quarter as follows:
-- Ending subscribers of 8.95 million to 9.25 million, down from 9.1
million to 9.7 million
-- Revenue of $353 million to $359 million, down from $357 million to $367
million
-- GAAP net income of $18 million to $23 million, unchanged from prior
guidance
-- GAAP EPS of $0.30 to $0.38, increased slightly from $0.29 to $0.37
Netflix will host its third-quarter earnings call on Monday, October 20
at 2:00 p.m. Pacific Time following the release of its third-quarter
financial results. Reed Hastings, CEO and co-founder and Barry McCarthy,
CFO will host the call to discuss third-quarter 2008 financial results and
the business outlook.
The live webcast of the conference call will be available on the
investor relations section of the Netflix website at http://ir.netflix.com.
Following the completion of the call, a replay of the webcast will be
available on the website. For those without access to the Internet, a
replay of the call will be available from 8:00 p.m. Pacific Time on October
20, 2008 through midnight on October 24, 2008. To listen to a replay, call
(719) 457-0820, access code 4207224.
About Netflix, Inc.
Netflix, Inc. (Nadsaq: NFLX) is the world's largest online movie rental
service, with more than eight million subscribers. For one low monthly
price, Netflix members can get DVDs delivered to their homes and can
instantly watch movies and TV episodes streamed to their TVs and PCs, all
in unlimited amounts. Members can choose from over 100,000 DVD titles and a
growing library of more than 12,000 choices that can be watched instantly.
There are never any due dates or late fees. DVDs are delivered free to
members by first class mail, with a postage-paid return envelope, from over
100 U.S. shipping points. More than 95 percent of Netflix members live in
areas that generally receive shipments in one business day. Netflix is also
partnering with leading consumer electronics companies to offer a range of
devices that can instantly stream movies and TV episodes to members' TVs
from Netflix. For more information, visit http://www.netflix.com/.
Forward-Looking Statements
This press release contains certain forward-looking statements within
the meaning of the federal securities laws, including statements regarding
our subscriber growth, revenue, GAAP net income and earnings per share for
the third and fourth quarters of 2008. The forward-looking statements in
this release are subject to risks and uncertainties that could cause actual
results and events to differ, including, without limitation: our ability to
attract new subscribers and retain existing subscribers, especially in the
current uncertain economic environment; our ability to manage our
subscriber acquisition cost as well as the cost of content delivered to our
subscribers; fluctuations in consumer usage of our service; the
deterioration of the U.S. economy and its affect on online commerce or the
filmed entertainment industry; conditions that effect our delivery through
the U.S. Postal Service, including regulatory changes; changes in the costs
of acquiring DVDs or electronic content; customer spending on DVDs and
related products; disruption in service on our website or with our computer
systems; and widespread consumer adoption of different modes of viewing
in-home filmed entertainment. Furthermore, the quarter-end estimates upon
which the third quarter guidance update is based may change as the company
finalizes its financial statements. A detailed discussion of various risks
and uncertainties that affect our company is included in our filings with
the Securities and Exchange Commission, including our Annual Report on Form
10-K filed with the Securities and Exchange Commission on February 28,
2008. We undertake no obligation to update forward-looking statements to
reflect events or circumstances occurring after the date of this press
release.
SOURCE Netflix Inc.
 back to top
Related links:
http://www.netflix.com
CONTACT:
Deborah Crawford, VP, Investor Relations,
+1-408-540-3712, or Steve Swasey, VP, Corporate Communications,
+1-408-540-3947, both of Netflix Inc.
|
