April 16, 2004, 12:00 AM

Netflix surpasses record $100 million in Q1 revenue

Netflix, the online DVD movie rental service, posted a first-quarter net loss of $5.8 million on record revenue of $100.4 million, as it absorbed marketing costs related to luring 760,000 new subscribers.

Kurt Peters

Executive Editor

Netflix Inc., the online DVD movie rental service, posted a net loss of $5.8 million on record revenue of $100.4 million for the first quarter ended March 31, compared to a net loss of $2.4 million on $81.2 million in revenue in the year-ago quarter, the company reported today. Netflix attributed much of the 140% widening of its net loss to the marketing costs related to luring 760,000 new subscribers, an 82% increase from the number of new subscribers garnered a year ago. It ended the first quarter with more than 1.9 million subscribers.

Netflix said its Q1 subscriber acquisition cost was $35.12 per new-trial subscriber, an 11% increase from $31.67 a year ago. But it said average monthly subscriber churn in Q1 was 4.7%, down from 5.8% from Q1 of last year.

Netflix noted that its Q1 non-GAAP net loss was $1.4 million, compared to non-GAAP net income of $31,000 a year ago. It said non-GAAP results do not include stock-based compensation expenses.

 

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