Netflix Q4 2009 Results: 12.3 Million Subs; $444.5 Million in Revenue

Netflix just released Q4 2009 results:

• 12.3 million subscribers, a net increase of more than 1 million new subscribers in Q4.
• $444.5 million in revenue, up slightly from Q3 2009. Total revenue for 2009 was $1.67 billion, up 22% over 2008.
• GAAP net income for Q4 was $30.9 million, and $115.9 million for the year.
• Subscriber acquisition cost declined to $25.23 for the quarter and $25.48 for the year.
• Churn was 3.9% for the quarter, down from 4.2% in Q4 2008.
• More than 48% of subscribers watched a streaming title in 2009, vs. 28% in 2008.

Outlook for 2010:

• 13.5 to 13.8 million subscribers in Q1, and 15.5 to 16.3 million subscribers in 2010.
• Revenue will increase to $490 - $496 million in Q1, and $2.05-$2.11 billion for the year.
• Q1 GAAP net income of $26 - $32 million, and $125 - $137 million for the year.

In the management commentary posted online, some interesting points:

• It took Netflix 4 years to reach 1 million subscribers, and they added 1 million in the fourth quarter of 2009.
• Netflix subscriber growth is now 31%, probably due to Netflix-ready devices and gaming consoles.
• While there will not be a postal increase this year, Netflix will still spend $600 million on postage, and expects that cost to grow to $800 million in a few years.
• Netflix signed or renewed streaming deals with Warner Bros., Sony, MGM, Paramount, The Disney Channel, and others in Q4.
• The first international launch later this year will be a streaming-only service in a single country, and will be used as a learning experience. My guess is Canada, but it could be England.

Be sure to tune in to the Webcast at 3pm PT at http://ir.netflix.com for a Q&A with management.

Comments

[henry schilitzar]

I wish I could have that much revenue.

[Jeff]

What this means to you: Even longer wait times for new release's as they pick up more subscribers.

[Eddy]

You think with this extra income they can spread the wealth and lower prices for those who are struggling?

[Ben]

@Eddy.

If people are struggling, maybe renting movies would be the least of their concerns. I know if I were "struggling" first things to go would be cell phone, cable, internet, and netflix. Essentially all non-necessity items.

[Netflix]

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[world of warcraft account]

A little bit of good news has come by way of Netflix, well good news for Netflix anyway—it seems they have added 1 million new subscribers in Q4 2009.

And in addition they are now touting a total of 12.3 million subscribers with revenue up and the churn rate down. In short it seems that Netflix is seeing a fair amount of success at the moment.

[juicy coutures]

myth. Lots of big city mayors also racked up great crime-fighting numbers at the same time. It was a direct