April 25, 2006, 12:00 AM

Netflix’s quarterly revenue reaches another record

First quarter revenue for Netflix Inc. reached a record $224.1 million, up 47% over the first quarter of 2005. Net income on a GAPP basis for the first quarter was $4.4 million compared to GAAP net loss of $8.8 million for the first quarter of 2005.

First quarter revenue for Netflix Inc. reached a record $224.1 million, up 47% over the $152.4 million for the first quarter of 2005, and 16% over the $193 million for the fourth quarter of 2005.

Net income on a GAPP basis for the first quarter was $4.4 million compared to GAAP net loss of $8.8 million for the first quarter of 2005.

The company spent $38.47 to acquire each new subscriber in Q1 compared to $38.68 for the same period of 2005 and $41.17 for the fourth quarter of 2005.

The percent of free trial and paying subscribers who chose not to renew was 4.1% in Q1, vs. 5% a year earlier and 4% in Q4 last year.

Netflix, No. 18 in the Internet Retailer Top 400 Guide to Retail Web Sites ended the first quarter with 4.86 million, representing 61% year-over-year growth from 3.02 million at the end of the first quarter of 2005 and 16% sequential growth from 4.18 million at the end of the fourth quarter of 2005. Net subscriber additions in the quarter were a record 687,000, compared to 408,000 for the same period of 2005 and 587,000 for the fourth quarter of 2005.

"Our record first-quarter performance provides additional evidence of the strength of our business model and our market, and reinforces our confidence that we can achieve our aggressive goals for subscriber and earnings growth. It has also led us to increase our near-term guidance for subscriber and revenue growth," said Reed Hastings, Netflix co-founder and chief executive officer.

The company expects to end the second quarter with 5.1 million to 5.3 million subscribers, revenue of $238 million to $242 million and GAAP net income of $9.5 million to $13.5 million. It expects to end the year with 6.3 million subscribers, revenue of at least $990 million and GAAP net income of $29.5 million to $35.4 million.

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