Netflix’s announced its 4Q numbers this afternoon.The results beat analyst’s expectations and the stock is up over 30% after-hours.
The two big numbers are below:
- Revenue: $945 Million versus $934.5 Million
- EPS: $0.13 versus -$0.13
- Earnings Guidance: sees 1Q EPS $0.00-$0.23, estimated was -$0.07.
Netflix closed out 2012 strong.
The entertainment giant added nearly 10 million global streaming members last year increasing its total global streaming members to over 33 million. Over 27 million members are domestic.
Netflix’s 4Q domestic streaming added 2.05 million subscribers while international added 1.81 million subscribers. Domestic DVD subscribers fell to 0.38 million subscribers.
Despite large international investments, making Netflix available in over 40 countries, the company was still able to generate a profit.
For 1Q, Netflix sees its international streaming subscribers increasing to 7.3 million, from 6.6 million adding between 0.48 and 1.18 million subscribers.
Netflix also see 1Q domestic DVD subscribers dropping to 7.6 million from 8.05 million and a declining loss in it’s current international markets.
Netflix saw improvements in the way it processes payments and is exploring refinancing $200 million worth of debt.
Netflix’s estimates that for the first time ever domestic streaming will be larger than its DVD contribution profit: Our target remains to expand contribution margin on average about 100 basis points per quarter. We anticipate domestic streaming contribution profit will, for the first time ever, be larger than DVD contribution profit (and up about 90% year over year) in Q1.
A graphic of how Netflix sees its competition:
Photo: Netflix Investor Letter
Here’s the full Investor Letter:
Here’s the press release from MarketWatch:
LOS GATOS, Calif., Jan. 23, 2013 /PRNewswire via COMTEX/ — Netflix, Inc. NFLX +25.51% has released its fourth-quarter 2012 financial results by posting them to its website. Please visit the Netflix investor relations website at http://ir.netflix.comto view the Q4’12 financial results and letter to shareholders.
As previously announced, Netflix management will host a live Q&A session at 3:00 p.m. Pacific Time to discuss the Company’s financial results and business outlook, with questions submitted via email. Please email your questions to [email protected] The company will read the questions aloud on the call and respond to as many questions as possible. After email Q&A, we will also open up the lines to take live follow-up questions. The dial-in for the live earnings Q&A session is: (760) 666-3613.
Media inquiries should be directed to Jonathan Friedland at (310) 734-2958 or [email protected]
A live webcast and the replay of the earnings Q&A session can be accessed on the investor relations section of the Netflix website at http://ir.netflix.com . The telephone replay of the earnings Q&A session will be available from 6:00 p.m. Pacific Time on January 23, 2013 through midnight on January 27, 2013. To listen to the replay, call (855) 859-2056, conference ID# 87568545.
About Netflix, Inc.
Netflix is the world’s leading Internet television network with more than 33 million members in 40 countries enjoying more than one billion hours of TV shows and movies per month, including original series. For one low monthly price, Netflix members can watch as much as they want, anytime, anywhere, on nearly any Internet-connected screen. Members can play, pause and resume watching, all without commercials or commitments. Learn more about how Netflix NFLX +25.51% is pioneering Internet television at www.netflix.com or follow Netflix on Facebook and Twitter.