Netflix, Inc.

Consolidated Statements of Operations

(unaudited)
(in thousands, except per share data)
Three Months
Three Months Ended Twelve Months Ended Three Months Ended Twelve Months Ended Three Months Ended Nine Months Ended Three Months Ended Twelve Months Ended Three Months Ended Twelve Months Ended Ended
March 31, June 30, September 30, December 31, December 31, March 31, June 30, September 30, December 31, December 31, March 31, June 30, September 30, September 30, March 31, June 30, September 30, December 31, December 31, March 31, June 30, September 30, December 31, December 31, March 31,
Ratio Ratio Ratio Ratio Ratio Ratio
2015 2015 2015 2015 2015 Income/ 2016 2016 2016 2016 2016 Income/ 2017 2017 2017 2017 Income/ 2018 2018 2018 2018 2018 Income/ 2019 2019 2019 2019 2019 Income/ 2020 Income/
Revenue Revenue Revenue Revenue Revenue Revenue
Revenues $ 1,573,129 $ 1,644,694 $ 1,738,355 $ 1,823,333 $ 6,779,511 $1,957,736 $2,105,204 $2,290,188 $2,477,541 $8,830,669 $2,636,635 $2,785,464 $2,984,859 $8,406,958 $3,700,856 $3,907,270 $3,999,374 $4,186,841 $15,794,341 $4,520,992 $4,923,116 $5,244,905 $5,467,434 $20,156,447 $5,767,691
Cost of revenues 1,046,401 1,121,752 1,173,958 1,249,365 4,591,476 1,369,540 1,473,098 1,532,844 1,654,419 6,029,901 1,657,024 1,902,308 1,992,980 5,552,312 2,300,579 2,402,431 2,531,128 2,733,400 9,967,538 2,870,614 3,005,657 3,097,919 3,466,023 12,440,213 3,599,701
Marketing 194,677 197,140 208,102 224,173 824,092 208,010 216,029 282,043 284,996 991,078 271,270 274,323 312,490 858,083 536,777 592,007 510,330 730,355 2,369,469 616,578 603,150 553,797 878,937 2,652,462 503,830
Technology and development 143,106 155,061 171,762 180,859 650,788 203,508 207,300 216,099 225,191 852,098 257,108 267,083 255,236 779,427 282,310 299,095 308,620 331,789 1,221,814 372,764 383,233 379,776 409,376 1,545,149 453,817
General and administrative 91,489 95,906 110,892 109,042 407,329 127,225 138,407 153,166 159,001 577,799 194,291 213,943 215,526 623,760 134,612 151,524 168,628 175,530 630,294 201,952 224,657 233,174 254,586 914,369 252,087
Operating income 97,456 74,835 73,641 59,894 305,826 49,453 70,370 106,036 153,934 379,793 256,942 127,807 208,627 593,376 446,578 462,213 480,668 215,767 1,605,226 459,084 706,419 980,239 458,512 2,604,254 958,256
Other income (expense):
Interest expense (26,737) (35,217) (35,333) (35,429) (132,716) (35,537) (35,455) (35,536) (43,586) (150,114) (46,742) (55,482) (60,688) (162,912) (81,219) (101,605) (108,862) (128,807) (420,493) (135,529) (152,033) (160,660) (177,801) (626,023) (184,083)
Interest and other income (expense) (32,293) 872 3,930 (3,734) (31,225) 25,963 16,317 8,627 (20,079) 30,828 13,592 (58,363) (31,702) (76,473) (65,743) 68,028 7,004 32,436 41,725 76,104 (53,470) 192,744 (131,378) 84,000 21,697
Income before income taxes 38,426 40,490 42,238 20,731 141,885 39,879 51,232 79,127 90,269 260,507 223,792 13,962 116,237 353,991 299,616 428,636 378,810 119,396 1,226,458 399,659 500,916 1,012,323 149,333 2,062,231 795,870
Provision for (benefit from) income taxes 14,730 14,155 12,806 (22,447) 19,244 12,221 10,477 27,610 23,521 73,829 45,570 (51,638) (13,353) (19,421) 9,492 44,287 (24,025) (14,538) 15,216 55,607 230,266 347,079 (437,637) 195,315 86,803
Net income $ 23,696 $ 26,335 $ 29,432 $ 43,178 $ 122,641 1.81% $ 27,658 $ 40,755 $ 51,517 $ 66,748 $ 186,678 2.11% $ 178,222 $ 65,600 $ 129,590 $ 373,412 4.44% $290,124 $ 384,349 $ 402,835 $ 133,934 $1,211,242 7.67% $344,052 $ 270,650 $ 665,244 $ 586,970 $1,866,916 9.26% $ 709,067 12.29%
Earnings per share:
Basic $ .06 $ .06 $ .07 $ .10 $ .29 $ .06 $ .10 $ .12 $ .16 $ .44 $ .41 $ .15 $ .30 $ .87 $ .67 $ .88 $ .92 $ .31 $ 2.78 $ .79 $ .62 $ 1.52 $ 1.34 $ 4.26 $ 1.61
Diluted $ .05 $ .06 $ .07 $ .10 $ .28 $ .06 $ .09 $ .12 $ .15 $ .43 $ .40 $ .15 $ .29 $ .84 $ .64 $ .85 $ .89 $ .30 $ 2.68 $ .76 $ .60 $ 1.47 $ 1.30 $ 4.13 $ 1.57
Weighted-average common shares outstanding:
Basic 423,624 425,340 426,869 427,668 425,889 428,117 428,483 428,937 429,738 428,822 430,600 431,396 432,404 431,473 434,174 435,097 435,809 436,385 435,374 436,947 437,587 438,090 438,547 437,799 439,352
Diluted 433,809 436,097 437,606 438,257 436,456 437,993 438,154 438,389 440,063 438,652 445,458 446,262 447,362 446,367 450,359 451,552 451,919 451,116 451,244 451,922 452,195 451,552 451,367 451,765 452,494
Netflix, Inc.
Consolidated Balance Sheets
(unaudited)
(in thousands)

March 31, June 30, September 30, December 31, March 31, June 30, September 30, December 31, March 31,
2018 2018 2018 2018 2019 2019 2019 2019 2020
Assets
Current assets:
Cash and cash equivalents $2,593,666 $3,906,357 $3,067,534 $ 3,794,483 $3,348,557 $5,004,247 $4,435,018 $ 5,018,437 $5,151,884
Current content assets, net 4,626,522 4,803,663 4,987,916 5,151,186 - - - - -
Other current assets 597,388 636,869 674,531 748,466 820,350 872,910 892,740 1,160,067 1,295,897
Total current assets 7,817,576 9,346,889 8,729,981 9,694,135 4,168,907 5,877,157 5,327,758 6,178,504 6,447,781
Non-current content assets, net 11,300,469 12,279,519 13,397,672 14,951,141 20,878,317 21,937,845 23,227,772 24,504,567 25,266,889
Property and equipment, net 341,932 349,646 371,152 418,281 434,372 452,399 481,992 565,221 650,455
Other non-current assets 692,820 687,483 867,424 910,843 1,737,036 1,903,938 1,904,189 2,727,420 2,694,785
Total assets $20,152,797 $22,663,537 $23,366,229 $25,974,400 $27,218,632 $ 30,171,339 $ 30,941,711 $33,975,712 $ 35,059,910
Liabilities and Stockholders' Equity
Current liabilities:
Current content liabilities $4,459,391 $4,537,578 $4,609,055 $4,681,562 $4,858,899 $ 4,846,525 $ 4,857,520 $4,413,561 $4,761,585
Accounts payable 436,183 448,219 441,427 562,985 439,496 442,194 444,129 674,347 545,488
Accrued expenses and other liabilities 436,121 396,104 531,035 481,874 750,720 752,488 1,040,745 843,043 1,061,090
Deferred revenue 673,892 697,740 716,723 760,899 808,692 892,777 915,506 924,745 986,753
Short-term debt - - - - - - - - 498,809
Total current liabilities 6,005,587 6,079,641 6,298,240 6,487,320 6,857,807 6,933,984 7,257,900 6,855,696 7,853,725
Non-current content liabilities 3,444,476 3,604,158 3,593,823 3,759,026 3,560,364 3,564,440 3,419,552 3,334,323 3,206,051
Long-term debt 6,542,373 8,342,067 8,336,586 10,360,058 10,305,023 12,594,135 12,425,746 14,759,260 14,170,692
Other non-current liabilities 139,631 141,071 127,927 129,231 792,380 973,232 977,008 1,444,276 1,420,148
Total liabilities 16,132,067 18,166,937 18,356,576 20,735,635 21,515,574 24,065,791 24,080,206 26,393,555 26,650,616
Stockholders' equity:
Common stock 1,995,225 2,103,437 2,215,736 2,315,988 2,439,773 2,566,365 2,677,972 2,793,929 2,935,532
Accumulated other comprehensive income (loss) 4,264 (12,427) (14,508) (19,582) (25,600) (20,352) (41,246) (23,521) (47,054)
Retained earnings 2,021,241 2,405,590 2,808,425 2,942,359 3,288,885 3,559,535 4,224,779 4,811,749 5,520,816
Total stockholders' equity 4,020,730 4,496,600 5,009,653 5,238,765 5,703,058 6,105,548 6,861,505 7,582,157 8,409,294
Total liabilities and stockholders' equity $20,152,797 $22,663,537 $23,366,229 $25,974,400 $27,218,632 $ 30,171,339 $ 30,941,711 $33,975,712 $ 35,059,910
Netflix, Inc.
Consolidated Statements of Cash Flows
(unaudited)
(in thousands)
Three Months Ended Twelve Months Ended Three Months Ended Twelve Months Ended Three Months Ended
March 31, June 30, September 30, December 31, December 31, March 31, June 30, September 30, December 31, December 31, March 31,
2018 2018 2018 2018 2018 2019 2019 2019 2019 2019 2020
Cash flows from operating activities:
Net income $ 290,124 $ 384,349 $ 402,835 $ 133,934 $ 1,211,242 $ 344,052 $ 270,650 $ 665,244 $ 586,970 $ 1,866,916 $ 709,067
Adjustments to reconcile net income to net cash
provided by (used in) operating activities:
Additions to content assets (2,986,747) (3,033,721) (3,238,717) (3,784,252) (13,043,437) (2,997,746) (3,325,103) (3,648,292) (3,945,542) (13,916,683) (3,294,275)
Change in content liabilities 378,885 288,474 65,868 266,653 999,880 (14,698) (12,414) (95,548) (571,351) (694,011) 258,945
Amortization of content assets 1,748,844 1,817,817 1,911,767 2,053,660 7,532,088 2,124,686 2,231,915 2,279,977 2,579,669 9,216,247 2,483,385
Depreciation and amortization of property, equipment and intangibles 19,041 19,736 21,161 23,219 83,157 23,561 25,496 26,704 27,818 103,579 28,517
Stock-based compensation expense 68,395 81,232 82,316 88,714 320,657 101,200 103,848 100,262 100,066 405,376 97,019
Other non-cash items 19,343 25,075 18,921 18,301 81,640 45,708 60,695 57,934 63,893 228,230 65,448
Foreign currency remeasurement loss (gain) on debt 41,080 (85,410) (7,670) (21,953) (73,953) (57,600) 61,284 (171,360) 122,100 (45,576) (93,060)
Deferred taxes (22,049) (9,539) (39,453) (14,479) (85,520) 6,627 35,519 52,105 (188,694) (94,443) 46,619
Changes in operating assets and liabilities:
Other current assets (55,905) (25,564) (30,364) (88,359) (200,192) (32,076) (24,231) 145 (195,951) (252,113) (127,353)
Accounts payable 74,083 7,733 (4,449) 121,831 199,198 (124,467) (2,674) (7,643) 230,847 96,063 (149,153)
Accrued expenses and other liabilities 119,049 (52,851) 134,000 (49,776) 150,422 157,647 (26,705) 260,872 (234,036) 157,778 214,191
Deferred revenue 55,270 23,848 18,983 44,176 142,277 47,793 84,085 22,729 9,239 163,846 62,008
Other non-current assets and liabilities 13,830 40,582 (25,609) (26,741) 2,062 (4,486) (26,119) (44,923) (47,003) (122,531) (41,446)
Net cash provided by (used in) operating activities (236,757) (518,239) (690,411) (1,235,072) (2,680,479) (379,799) (543,754) (501,794) (1,461,975) (2,887,322) 259,912
Cash flows from investing activities:
Purchases of property and equipment (37,170) (27,323) (39,333) (70,120) (173,946) (60,381) (39,584) (45,333) (107,737) (253,035) (98,015)
Change in other assets (12,582) (12,993) (129,361) (10,238) (165,174) (19,722) (10,452) (4,021) (99,834) (134,029) (288)
Net cash used in investing activities (49,752) (40,316) (168,694) (80,358) (339,120) (80,103) (50,036) (49,354) (207,571) (387,064) (98,303)
Cash flows from financing activities:
Proceeds from issuance of debt - 1,900,000 - 2,061,852 3,961,852 - 2,243,196 - 2,226,110 4,469,306 -
Issuance costs - (16,992) - (18,879) (35,871) - (18,192) - (17,942) (36,134) -
Proceeds from issuance of common stock 56,335 26,936 29,781 11,450 124,502 22,972 21,896 11,989 15,633 72,490 43,694
Other financing activities (321) (532) (544) (559) (1,956) - - - - - -
Net cash provided by financing activities 56,014 1,909,412 29,237 2,053,864 4,048,527 22,972 2,246,900 11,989 2,223,801 4,505,662 43,694

Effect of exchange rate changes on cash, cash equivalents, and restricted cash 7,177 (36,340) (5,562) (4,957) (39,682) (5,014) 4,998 (29,325) 29,810 469 (70,902)
Net increase (decrease) in cash, cash equivalents, and restricted cash (223,318) 1,314,517 (835,430) 733,477 989,246 (441,944) 1,658,108 (568,484) 584,065 1,231,745 134,401
Cash, cash equivalents, and restricted cash beginning of period 2,822,795 2,599,477 3,913,994 3,078,564 2,822,795 3,812,041 3,370,097 5,028,205 4,459,721 3,812,041 5,043,786
Cash, cash equivalents, and restricted cash end of period $ 2,599,477 $ 3,913,994 $ 3,078,564 $ 3,812,041 $ 3,812,041 $ 3,370,097 $ 5,028,205 $ 4,459,721 $ 5,043,786 $ 5,043,786 $ 5,178,187

Non-GAAP free cash flow reconciliation:

Net cash provided by (used in) operating activities $ (236,757) $ (518,239) $ (690,411) $ (1,235,072) $ (2,680,479) $ (379,799) $ (543,754) $ (501,794) $ (1,461,975) $ (2,887,322) $ 259,912
Net cash used in investing activities (49,752) (40,316) (168,694) (80,358) (339,120) (80,103) (50,036) (49,354) (207,571) (387,064) (98,303)
Non-GAAP free cash flow $ (286,509) $ (558,555) $ (859,105) $ (1,315,430) $ (3,019,599) $ (459,902) $ (593,790) $ (551,148) $ (1,669,546) $ (3,274,386) $ 161,609
Netflix, Inc.
Streaming Revenue and Membership Information by Region
(unaudited)
(in thousands, except for average monthly revenue per paying membership and percentages)

As of / Three
As of / Three Months Ended As of / Year Ended As of / Three Months Ended As of / Year Ended As of / Three Months Ended As of / Year Ended Months Ended
March 31, June 30, September 30, December 31, December 31, March 31, June 30, September 30, December 31, December 31, March 31, June 30, September 30, December 31, December 31, March 31,
2017 2017 2017 2017 2017 2018 2018 2018 2018 2018 2019 2019 2019 2019 2019 2020

United States and Canada (UCAN)

Revenues (1) $ 1,586,167 $ 1,624,397 $ 1,674,308 $ 1,775,987 $ 6,660,859 $ 1,976,157 $ 2,049,546 $ 2,094,850 $ 2,160,979 $ 8,281,532 $ 2,256,851 $ 2,501,199 $ 2,621,250 $ 2,671,908 $ 10,051,208 $ 2,702,776
Paid net membership additions (losses) 1,665 1,042 1,162 1,643 5,512 2,487 961 1,140 1,747 6,335 1,876 (132) 613 548 2,905 2,307
Paid memberships at end of period 54,575 55,617 56,779 58,422 58,422 60,909 61,870 63,010 64,757 64,757 66,633 66,501 67,114 67,662 67,662 69,969
Average paying memberships 53,743 55,096 56,198 57,601 55,660 59,666 61,390 62,440 63,884 61,845 65,695 66,567 66,808 67,388 66,615 68,816
Average monthly revenue per paying membership $9.84 $9.83 $9.93 $10.28 $9.97 $11.04 $11.13 $11.18 $11.28 $11.16 $11.45 $12.52 $13.08 $13.22 $12.57 $13.09
% change as compared to prior-year period 16% 14% 8% 6% 11% 12% 13% 13% 10% 12% 4% 12% 17% 17% 13% 14%
Constant currency % change as compared to prior-year period* 16% 15% 8% 6% 11% 12% 13% 13% 10% 12% 4% 13% 17% 17% 13% 14%

Europe, Middle East and Africa (EMEA)

Revenues $ 482,282 $ 533,098 $ 614,707 $ 732,726 $ 2,362,813 $ 886,649 $ 975,497 $ 1,004,749 $ 1,096,812 $ 3,963,707 $ 1,233,379 $ 1,319,087 $ 1,428,040 $ 1,562,561 $ 5,543,067 $ 1,723,474
Paid net membership additions 1,868 1,453 1,983 2,869 8,173 3,335 1,978 2,519 3,982 11,814 4,724 1,687 3,126 4,423 13,960 6,956
Paid memberships at end of period 19,699 21,152 23,135 26,004 26,004 29,339 31,317 33,836 37,818 37,818 42,542 44,229 47,355 51,778 51,778 58,734
Average paying memberships 18,765 20,426 22,144 24,570 21,476 27,672 30,328 32,577 35,827 31,601 40,180 43,386 45,792 49,567 44,731 55,256
Average monthly revenue per paying membership $8.57 $8.70 $9.25 $9.94 $9.17 $10.68 $10.72 $10.28 $10.20 $10.45 $10.23 $10.13 $10.40 $10.51 $10.33 $10.40
% change as compared to prior-year period 3% 1% 6% 15% 7% 25% 23% 11% 3% 14% -4% -6% 1% 3% -1% 2%
Constant currency % change as compared to prior-year period* 11% 8% 5% 9% 8% 11% 11% 10% 6% 9% 2% 3% 6% 7% 4% 4%

Latin America (LATAM)

Revenues $ 331,453 $ 381,459 $ 434,637 $ 495,067 $ 1,642,616 $ 540,182 $ 568,071 $ 562,307 $ 567,137 $ 2,237,697 $ 630,472 $ 677,136 $ 741,434 $ 746,392 $ 2,795,434 $ 793,453
Paid net membership additions 1,217 1,588 1,254 1,450 5,509 1,543 1,535 1,320 1,962 6,360 1,470 343 1,490 2,037 5,340 2,901
Paid memberships at end of period 15,425 17,013 18,267 19,717 19,717 21,260 22,795 24,115 26,077 26,077 27,547 27,890 29,380 31,417 31,417 34,318
Average paying memberships 14,817 16,219 17,640 18,992 16,917 20,489 22,028 23,455 25,096 22,767 26,812 27,719 28,635 30,399 28,391 32,868
Average monthly revenue per paying membership $7.46 $7.84 $8.21 $8.69 $8.09 $8.79 $8.60 $7.99 $7.53 $8.19 $7.84 $8.14 $8.63 $8.18 $8.21 $8.05
% change as compared to prior-year period 21% 20% 14% 17% 17% 18% 10% -3% -13% 1% -11% -5% 8% 9% 0% 3%
Constant currency % change as compared to prior-year period* 15% 15% 13% 17% 15% 18% 18% 14% 6% 13% 7% 12% 17% 18% 13% 12%

Asia-Pacific (APAC)
Revenues $ 116,339 $ 131,773 $ 150,993 $ 176,823 $ 575,928 $ 199,117 $ 221,252 $ 248,691 $ 276,756 $ 945,816 $ 319,602 $ 349,494 $ 382,304 $ 418,121 $ 1,469,521 $ 483,660
Paid net membership additions 523 590 588 659 2,360 893 978 1,089 1,146 4,106 1,534 801 1,543 1,748 5,626 3,602
Paid memberships at end of period 4,664 5,254 5,842 6,501 6,501 7,394 8,372 9,461 10,607 10,607 12,141 12,942 14,485 16,233 16,233 19,835
Average paying memberships 4,403 4,959 5,548 6,172 5,271 6,948 7,883 8,917 10,034 8,446 11,374 12,542 13,714 15,359 13,247 18,034
Average monthly revenue per paying membership $8.81 $8.86 $9.07 $9.55 $9.11 $9.55 $9.36 $9.30 $9.19 $9.33 $9.37 $9.29 $9.29 $9.07 $9.24 $8.94
% change as compared to prior-year period 9% 3% 3% 8% 6% 8% 6% 3% -4% 2% -2% -1% 0% -1% -1% -5%
Constant currency % change as compared to prior-year period* 6% 2% 2% 7% 4% 4% 3% 5% 2% 3% 3% 5% 3% 0% 3% -3%

(1) Excludes DVD revenues of $366 million, $297 million and $64 million for the years ended December 31, 2018 and 2019, and the three months ended March 31, 2020, respectively. Total US revenues for the years ended December 31, 2018 and 2019, and the three months ended March 31, 2020 were $8.0 billion, $9.5 billion and $2.5 billion, respectively.
* The company believes that constant currency information is useful in analyzing the underlying trends in average monthly revenue per paying membership. In order to exclude the effect of foreign currency rate fluctuations on average monthly revenue per paying membership, the Company estimates the current period revenue assuming foreign exchange rates had remained constant
with foreign exchange rates from each of the corresponding months of the prior-year period.
Netflix, Inc.
Segment Information
(unaudited)
(in thousands)

Twelve Months Twelve Months Twelve Months

As of / Three Months Ended Ended As of / Three Months Ended Ended As of / Three Months Ended Ended
March 31, June 30, September 30, December 31, December 31, March 31, June 30, September 30, December 31, December 31, March 31, June 30, September 30, December 31, December 31,
2017 2017 2017 2017 2017 2018 2018 2018 2018 2018 2019 2019 2019 2019 2019

Domestic Streaming
Paid memberships at end of period 49,375 50,323 51,345 52,810 52,810 55,087 55,959 56,957 58,486 58,486 60,229 60,103 60,620 61,043 61,043
Paid net membership additions (losses) 1,470 948 1,022 1,465 4,905 2,277 872 998 1,529 5,676 1,743 (126) 517 423 2,557
Free trials 1,479 1,598 1,427 1,940 1,940 1,618 1,420 1,507 2,065 2,065 1,563 1,575 1,375 1,405 1,405
Revenues $ 1,470,042 $ 1,505,499 $ 1,547,210 $ 1,630,274 $ 6,153,025 $ 1,820,019 $ 1,893,222 $ 1,937,314 $1,996,092 $ 7,646,647 $2,073,555 $2,299,189 $2,412,598 $2,457,663 $ 9,243,005
Cost of revenues 783,954 868,530 902,275 916,100 3,470,859 936,480 969,995 1,038,473 1,093,446 4,038,394 1,139,535 1,196,420 1,210,105 1,321,283 4,867,343
Marketing 126,253 124,903 141,533 211,057 603,746 250,719 251,298 210,595 312,739 1,025,351 221,046 250,606 211,793 379,597 1,063,042
Contribution profit 559,835 512,066 503,402 503,117 2,078,420 632,820 671,929 688,246 589,907 2,582,902 712,974 852,163 990,700 756,783 3,312,620
Contribution margin 38.1% 34.0% 32.5% 30.9% 33.8% 34.8% 35.5% 35.5% 29.6% 33.8% 34.4% 37.1% 41.1% 30.8% 35.8%

International Streaming
Paid memberships at end of period 44,988 48,713 52,678 57,834 57,834 63,815 68,395 73,465 80,773 80,773 88,634 91,459 97,714 106,047 106,047
Paid net membership additions 3,803 3,725 3,965 5,156 16,649 5,981 4,580 5,070 7,308 22,939 7,861 2,825 6,255 8,333 25,274
Free trials 2,906 3,318 3,798 4,998 4,998 4,475 4,367 5,170 7,131 7,131 5,003 4,481 4,215 3,274 3,274

Revenues $ 1,046,199 $ 1,165,228 $ 1,327,435 $ 1,550,329 $ 5,089,191 $ 1,782,086 $ 1,921,144 $ 1,973,283 $2,105,592 $ 7,782,105 $2,366,749 $2,547,727 $2,760,430 $2,941,319 $ 10,616,225
Cost of revenues 896,558 1,070,432 1,136,877 1,255,749 4,359,616 1,321,706 1,392,512 1,455,554 1,606,275 5,776,047 1,697,121 1,778,890 1,860,021 2,113,631 7,449,663
Marketing 179,895 186,257 210,913 255,470 832,535 286,058 340,709 299,735 417,616 1,344,118 395,532 352,544 342,004 499,340 1,589,420
Contribution profit (loss) (30,254) (91,461) (20,355) 39,110 (102,960) 174,322 187,923 217,994 81,701 661,940 274,096 416,293 558,405 328,348 1,577,142
Contribution margin -2.9% -7.8% -1.5% 2.5% -2.0% 9.8% 9.8% 11.0% 3.9% 8.5% 11.6% 16.3% 20.2% 11.2% 14.9%

Total Streaming
Paid memberships at end of period 94,363 99,036 104,023 110,644 110,644 118,902 124,354 130,422 139,259 139,259 148,863 151,562 158,334 167,090 167,090
Paid net membership additions 5,273 4,673 4,987 6,621 21,554 8,258 5,452 6,068 8,837 28,615 9,604 2,699 6,772 8,756 27,831
Free trials 4,385 4,916 5,225 6,938 6,938 6,093 5,787 6,677 9,196 9,196 6,566 6,056 5,590 4,679 4,679
Revenue $ 2,516,241 $ 2,670,727 $ 2,874,645 $ 3,180,603 $ 11,242,216 $ 3,602,105 $ 3,814,366 $ 3,910,597 $ 4,101,684 $ 15,428,752 $ 4,440,304 $ 4,846,916 $ 5,173,028 $ 5,398,982 $ 19,859,230
Cost of revenues 1,680,512 1,938,962 2,039,152 2,171,849 7,830,475 2,258,186 2,362,507 2,494,027 2,699,721 9,814,441 2,836,656 2,975,310 3,070,126 3,434,914 12,317,006
Marketing 306,148 311,160 352,446 466,527 1,436,281 536,777 592,007 510,330 730,355 2,369,469 616,578 603,150 553,797 878,937 2,652,462
Contribution profit 529,581 420,605 483,047 542,227 1,975,460 807,142 859,852 906,240 671,608 3,244,842 987,070 1,268,456 1,549,105 1,085,131 4,889,762
Contribution margin 21.0% 15.7% 16.8% 17.0% 17.6% 22.4% 22.5% 23.2% 16.4% 21.0% 22.2% 26.2% 29.9% 20.1% 24.6%

Domestic DVD
Paid memberships at end of period 3,867 3,692 3,520 3,330 3,330 3,138 2,971 2,828 2,706 2,706 2,565 2,411 2,276 2,153 2,153
Free trials 77 66 49 53 53 29 28 24 25 25 22 17 16 15 15
Revenues $ 120,394 $ 114,737 $ 110,214 $ 105,152 $ 450,497 $ 98,751 $ 92,904 $ 88,777 $85,157 $ 365,589 $80,688 $76,200 $71,877 $68,452 $ 297,217
Cost of revenues 60,219 52,734 47,087 42,485 202,525 42,393 39,924 37,101 33,679 153,097 33,958 30,347 27,793 31,109 123,207
Contribution profit 60,175 62,003 63,127 62,667 247,972 56,358 52,980 51,676 51,478 212,492 46,730 45,853 44,084 37,343 174,010
Contribution margin 50.0% 54.0% 57.3% 59.6% 55.0% 57.1% 57.0% 58.2% 60.5% 58.1% 57.9% 60.2% 61.3% 54.6% 58.5%

Consolidated
Revenues $ 2,636,635 $ 2,785,464 $ 2,984,859 $ 3,285,755 $ 11,692,713 $ 3,700,856 $ 3,907,270 $ 3,999,374 $ 4,186,841 $ 15,794,341 $ 4,520,992 $ 4,923,116 $ 5,244,905 $ 5,467,434 $ 20,156,447
Cost of revenues 1,740,731 1,991,696 2,086,239 2,214,334 8,033,000 2,300,579 2,402,431 2,531,128 2,733,400 9,967,538 2,870,614 3,005,657 3,097,919 3,466,023 12,440,213
Marketing 306,148 311,160 352,446 466,527 1,436,281 536,777 592,007 510,330 730,355 2,369,469 616,578 603,150 553,797 878,937 2,652,462
Contribution profit $ 589,756 $ 482,608 $ 546,174 $ 604,894 $ 2,223,432 $ 863,500 $ 912,832 $ 957,916 $ 723,086 $ 3,457,334 $ 1,033,800 $ 1,314,309 $ 1,593,189 $ 1,122,474 $ 5,063,772
Other operating expenses 332,814 354,801 337,547 359,591 1,384,753 416,922 450,619 477,248 507,319 1,852,108 574,716 607,890 612,950 663,962 2,459,518
Operating income 256,942 127,807 208,627 245,303 838,679 446,578 462,213 480,668 215,767 1,605,226 459,084 706,419 980,239 458,512 2,604,254
Other income (expense) (33,150) (113,845) (92,390) (113,973) (353,358) (146,962) (33,577) (101,858) (96,371) (378,768) (59,425) (205,503) 32,084 (309,179) (542,023)
Provision for (benefit from) income taxes 45,570 (51,638) (13,353) (54,187) (73,608) 9,492 44,287 (24,025) (14,538) 15,216 55,607 230,266 347,079 (437,637) 195,315
Net Income $ 178,222 $ 65,600 $ 129,590 $ 185,517 $ 558,929 $ 290,124 $ 384,349 $ 402,835 $ 133,934 $ 1,211,242 $ 344,052 $ 270,650 $ 665,244 $ 586,970 $ 1,866,916