Netflix, Inc.

Consolidated Statements of Income

(dollars in thousands)
Through December 31

2010

2009

$3,204,577

$2,162,625

$1,670,269

TOTAL REVENUES

3,204,577

2,162,625

1,670,269

COST OF REVENUES
Subscription

1,789,596

1,154,109

909,461

Fulfillment expenses

250,305

203,246

169,810

Total cost of revenues

2,039,901

1,357,355

1,079,271

Gross Margin

1,164,676

805,270

590,998

Marketing

402,638

293,839

237,744

Technology and development

259,033

163,329

114,542

General and administrative

117,937

64,461

46,773

9,000

788,608

521,629

399,059

376,068

283,641

191,939

(20,025)

(19,629)

(6,475)

3,479

3,684

6,728

359,522

267,696

192,192

REVENUE
Net Sales

2011

OPERATING EXPENSES

Legal Settlement
Total Operating Expenses
Operating Income
OTHER INCOME (EXPENSE)
Interest expense
Interest and other income
INCOME BEFORE INCOME TAXES
Provision for income taxes
NET INCOME

133,396

106,843

76,332

$226,126

$160,853

$115,860

Netflix, Inc.

Consolidated Balance Sheets

(dollars in thousands)
At December 31

2011

2010

ASSETS
CURRENT ASSETS
Cash and cash equivalents
Short-term investments
Current content library, net
Prepaid content
Other current assets

$508,053
289,758
919,709
56,007
57,330

$194,499
155,888
181,006
62,217
43,621

Total Current Assets

1,830,857

637,231

OTHER ASSETS

1,046,934
136,353
1,183,287
55,052

180,973
128,570
309,543
35,293

TOTAL ASSETS

3,069,196

982,067

924,706
87,860
63,693
148,796
1,225,055
200,000

168,695
54,129
38,572
127,183
388,579
200,000

200,000

739,628
61,703
2,426,386

48,179
55,145
691,903

55

53

219,119
706
422,930
642,810

51,622
750
237,739
290,164

$3,069,196

$982,067

PROPERTY AND EQUIPMENT

Non-current content library, net
Property and equipment, net

LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES
Content Accounts Payable
Other accounts payable
Accrued Expenses
Deferred Revenue
Total Current Liabilities
Long-term debt
Long-term debt due to related party
Non-current content liabilities
OTHER LIABILITIES
Total Liabilities
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' EQUITY
Preferred stock, $0.001 par value; 10,000,000 shares authorized at December
31, 2011 and 2010; no shares issued and outstanding at December 31, 2011
and 2010
Common stock, $0.001 par value; 160,000,000 shares authorized at
December 31, 2011 and 2010; 55,398,615 and 52,781,949 issued and
outstanding at December 31, 2011 and 2010, respectively
Additional Paid-in Capital
Accumulated Other Comprehensive Income
Retained Earnings
Total Stockholder's Equity
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY