Netflix Business Analysis 2015

Revenues and Profitswww.revenuesandprofits.com

Presentation Outline

2

‣ Overall Revenues And Profits Analysis

‣ Business Segment Revenues Analysis

‣ Key Business Metrics Analysis

Netflix Overall Revenues Analysis

3

Revenues (In $ Millions)

2012 2013 2014 2015

$6,780

$5,505

$4,375$3,609

Revenue YoY Growth

2012 2013 2014 2015

21.2%

25.8%23.2%

Netflix Costs Analysis

4

Costs (In $ Millions)

2012 2013 2014 2015

$407

$270$180

$139

$651

$472$379

$329

$824

$607$470

$439

$4,591$3,753

$3,117$2,652

Cost of RevenuesMarketingTechnology and developmentGeneral and administrative

Costs As A Percentage Of Revenue

2012 2013 2014 2015

6.0%4.9%4.1%3.9%

9.6%8.6%8.7%9.1%

12.2%11.0%10.7%12.2%

67.7%68.2%71.3%73.5%

Cost of Revenues as a % of Total RevenueMarketing Expenses as a % of Total RevenueTechnology and Development Expenses as a % of Total RevenueGeneral & Administrative Expenses as a % of Total Revenue

Netflix Gross Income Analysis

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Gross Income (In $ Millions)

2012 2013 2014 2015

$2,188

$1,752

$1,257

$957

Gross Margin

2012 2013 2014 2015

32.3%31.8%28.7%26.5%

Netflix Operating Income Analysis

6

Operating Profit (Loss) (In $ Millions)

2012 2013 2014 2015

$306

$403

$228

$50

Operating Margin

2012 2013 2014 2015

4.5%7.3%5.2%1.4%

Netflix Net Income Analysis

7

Net Profit (Loss) (In $ Millions)

2012 2013 2014 2015

$123

$267

$112

$17

Net Margin

2012 2013 2014 2015

1.8%4.8%2.6%0.5%

Netflix Business Segment Revenues Analysis

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Business Segments Revenues (In $ Millions)

2012 2013 2014 2015

$646

$765

$911$1,137

$1,953

$1,308

$712$288

$4,180$3,431

$2,751$2,185

Domestic Streaming International StreamingDomestic DVD

Business Segments Revenue Share

2012 2013 2014 2015

9.5%13.9%20.8%31.5%28.8%23.8%

16.3%8.0%

61.7%62.3%62.9%60.5%

Domestic Streaming International StreamingDomestic DVD

Business Segments Revenue YoY Growth

2012 2013 2014 2015

-19.9% -16.0% -15.6%

147.8%

83.6%49.3%

25.9% 24.7% 21.8%Domestic StreamingInternational StreamingDomestic DVD

Netflix Subscribers Analysis

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Netflix Total Memberships (In Millions)

2012 2013 2014 2015

4.9

5.8

6.9

8.2

30.0

18.3

10.96.1

44.739.1

33.427.1

Domestic Streaming International StreamingDomestic DVD

Netflix Net Member Additions (in Thousands)

2012 2013 2014 2015

-863-1,163-1,294

11,747

7,347

4,8095,6245,6946,274

Domestic Streaming International StreamingDomestic DVD

Netflix Total Memberships YoY Growth

2012 2013 2014 2015

-15.7% -16.8% -15.0%

78.6%67.2% 64.3%

23.1% 17.0% 14.4%

Domestic StreamingInternational StreamingDomestic DVD

* Total memberships at the end of Q4 of the respective years.

Thank You

Revenues and Profitswww.revenuesandprofits.com