Netflix Reaffirms Guidance For Fourth Quarter 2002
LOS GATOS, CA - December 18, 2002 -- Netflix, Inc. (Nasdaq: NFLX) reaffirmed today the previously announced guidance it released on December 4, 2002 for the fourth quarter ending December 31, 2002 for subscriber churn, ending subscribers, subscriber acquisition costs, revenue, EBITDA and gross margin. The guidance remains as follows:
- Average monthly subscriber churn of 6.6 to 7.0%
- Ending subscribers of 840 to 870 thousand
- Subscriber acquisition cost of $34 to $38
- Revenue of $43 to $46 million
- EBITDA of $6.5 to $7.5 million
- Gross margin of 47 to 48%
Fourth Quarter Earnings Release
Netflix will release its fourth quarter 2002 financial results on January 15, 2003 after the market close. A web cast of the quarterly conference call will begin at 2 PM PST and can be accessed via the web at www.netflix.com or at www.prnewswire.com.
About Netflix
Launched in 1998, Netflix (Nasdaq: NFLX) is the world's largest online DVD rental service, providing more than 740,000 subscribers with access to a comprehensive library of over 12,000 DVD titles. For $19.95 a month, Netflix subscribers can rent as many DVDs as they want, with three movies out at a time, and keep them for as long as they like. There are no due dates and no late fees. DVDs are delivered directly to the subscriber's address by first-class mail from 11 distribution centers throughout the United States. The Company also provides background information on DVD releases, including reviews, member reviews and ratings and personalized movie recommendations. For more information on the Company, visit www.netflix.com.
Forward-Looking Statements
This press release contains certain forward-looking statements within the meaning of the federal securities laws, including statements regarding our subscriber churn, ending subscribers, subscriber acquisition costs, EBITDA, revenue, and gross margin for the fourth quarter of 2002. These statements are subject to risks and uncertainties that could cause actual results and events to differ, including, without limitation: our ability to attract new subscribers and retain existing subscribers, in particular, during the last few weeks of the fourth quarter; our ability to manage our growth, in particular our subscriber acquisition costs; fluctuations in consumer spending on DVD players, DVDs and related products, and changes to the historical seasonal correlation between such sales and our subscriber growth; competition; disruption in service on our website or with our computer systems; deterioration of the U.S. economy or conditions specific to online commerce or the filmed entertainment industry; conditions that effect our delivery through the U.S. Postal Service; and widespread consumer adoption of different modes of viewing in-home filmed entertainment. A detailed discussion of these and other risks and uncertainties that could cause actual results and events to differ materially from such forward-looking statements is included in our final prospectus dated May 22, 2002 relating to our initial public offering. We undertake no obligation to update forward-looking statements to reflect events or circumstances occurring after the date of this press release.