Netflix earnings came in Thursday straddling expectations. Analysts had called for 41 cents a share on revenues of $390m. The company delivered 37 cents on revenue of $394m. Despite the differences, Netflix first quarter profit was up 68% compared to Q1 of 2008. Revenue was up 21%.
Weak ad markets and growing consumer appetite for entertainment helped the company deliver impressive subscriber growth and reduced subscriber acquisition costs. Netflix closed the quarter with 10.31m subscribers, a 25% year over year expansion. Subscriber acquisition costs were $25.79 per subscriber compared to $29.48 last year and $26.67 in Q4 2008.
Netflix believes it will continue to expand as the greater DVD market seems to be shrinking. For the next quarter, the company is forecasting earnings of 44c to 53cents a share on revenue of $403 to $409m. The subscriber count is estimated to be between 10.4m and 10.6m.
For the full year ahead, the company sees more growth. Netflix is now anticipating a 500k surge in subscribers beyond prior guidance.
Prior Metue Coverage of Netflix Earnings
• Netflix Q4 2008 Earnings
•Netflix Q3 2008 Earnings
•Netflix Resets Earnings Expectations
•Netflix Q2 ‘08 Earnings: Better than Expectations
•Netflix Q1 ’08 Earnings: Short Term Sell? Long Term Buy?
•Netflix Q4 ’07 Earnings
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