The $67 million investment in Allopneus will help Michelin better understand online tire buyers, the tire maker says.
Online DVD rental service Netflix Inc. returned to profitability in the second quarter, with net income soaring 97% to $5.7 million from $2.9 million a year earlier. Netflix had a net loss of $8.8 million in the first quarter.
Online DVD rental service Netflix Inc. returned to profitability in a big way in the second quarter, with net income soaring 97% to $5.7 million from $2.9 million a year earlier. Netflix had reported a net loss of $8.8 million in the first quarter.
The company attributed the improvement to lower-than-expected marketing costs, better-than-expected cost management, and lower-than-expected stock-based compensation expense.
Netflix, the 18th largest online retialers as ranked by Internet Retailer’s Top 400 Guide to Retail Web Sites, reported second-quarter revenues of $164.5 million, a 37% increase from $120.3 million in the year-ago period and a 7% increase from $154.1 million in the first quarter. Subscribers increased 53% to 3.2 million, including 3.1 million paid subscribers. That compares with 2.1 million subscribers a year earlier.
Acquisition cost per subscriber reached $37.25 in the second quarter, compared with $35.12 a year earlier and $37.89 in the first quarter.
CEO Reed Hastings said he is confident that Netflix will hit 4 million subscribers and reach profitability by year’s end, and will emerge as the clear-cut market leader in its battle with Blockbuster Inc.
The company said it expects to end the year with net income of between $2.4 million and $11.9 million, a sharp increase from its previous guidance of a loss of between $5 million to $15 million.