I couldn't have summarized it better, Hacking Netflix has all the story. Look at their major indicators, they rock, and their share price shows.
"Netflix Releases Quarterly Subscriber Numbers, Upgrades Forecast
Netflix announced that they had ended Q3 2004 with approx. 2,229,000 subscribers (96% of them paying customers), up 6% over last quarter and 73% over last year. Not bad when you have Blockbuster breathing down your neck and a recent price increase.
Netflix is slowly getting everyone to join: 8.1% of San Francisco Bay Area residents now subscribe to Netflix (up from 7.6%), and 1.9% of all U.S. households use the service.
Netflix upgraded the forecast for GAAP net income to nearly $17.5 million and non-GAAP income to $21 million, well above earlier projections. Their gross margin also increased and could reach 51%. The churn rate (customers leaving the service) could be as high as 5.6%. Lower customer rental rates helped increase the profit margin (less movie rentals mean less postage and other costs). Netflix suggest that it was the Olympics but I think it was the nice summer weather that resulted in customers renting fewer movies.
Netflix also changed their amortization policy for movies from 1 year to 3 years, citing the longer rental life for older titles due to the recommendation engine (nearly 98% of the 25,000 movies are rented each quarter).
This is the last quarter that Netflix will announce the subscriber numbers more than a week before the quarterly financial results.
Netflix will release the quarterly financial results on October 14th at the market close and will hold an investor conference call at 2pm (PDT). You can listen in by visiting http://ir.netflix.com.
October 05, 2004 |"
My little finger tells me that glowria.fr will release an interesting press release this week.
