Thursday, 19 January 2017

Netflix has 89m paying subscribers; 47% are outside the US

"In Q4, global streaming revenue grew 41% year over year to $2.4 billion, while contribution profit rose 74% year over year to $470 million (20% margin). Operating profit totaled $154 million (6.2%
operating margin) against guidance of $125 million, while net income amounted to $67 million,
compared with our forecast of $56 million. Net income included a -$22 million foreign exchange
adjustment booked in other expense due to the strength of the US dollar. As a reminder, the quarterly
guidance we provide is our actual internal forecast at the time we report.
We added 7.05 million net new members globally in the quarter, against our forecast of 5.20 million
and last year's Q4 performance of 5.59 million. This was the largest quarter of net additions in our
history and was driven by strong acquisition trends in both our US and International segments.
Domestically, we added 1.93 million members in the quarter, exceeding our forecast of 1.45 million
and 1.56 million in the year-ago quarter. Combined with 15% ASP growth, revenue increased 27%
year-over -year to $1.4 billion. US contribution margin expanded 395 basis points year-over-year to
38.2%. Margin improvement was greater than expected due primarily to higher-than-forecast
revenue and the timing of content deals.
International membership grew by 5.12 million in Q4, against a forecast of 3.75 million and 4.04
million in the year-ago quarter. Over 47% of our total members are now outside of the US. This
growth was very broad based geographically as our original content continues to be well-received all
over the world. ASP for the international segment rose 13% year over year (excluding a -$21 million
impact from currency). International contribution loss was -$67 million, compared with our forecast of -$75 million, as content spend was slightly lower than expected owing primarily to timing."
Source:  Netflix' Q4 2016 earnings letter to shareholders, 18th January 2017

No comments: