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Netflix Inc. (NFLX) filed Annual Report for the period ended 2011-12-31.
Netflix Inc. has a market cap of $7.08 billion; its shares were traded at around $123.93 with a P/E ratio of 30 and P/S ratio of 2.2. Netflix Inc. had an annual average earning growth of 154.4% over the past 5 years.
This is the annual revenues and earnings per share of NFLX over the last 10 years. For detailed 10-year financial data and charts, go to 10-Year Financials of NFLX.
Highlight of Business Operations:
Due to the announcement of changes to our domestic plan offerings, pricing, and branding in the third quarter of 2011, we experienced an increase in the number of subscriber cancellations, resulting in a net loss of unique domestic subscribers in the third quarter of 2011. However, unique domestic subscribers returned to growth in the fourth quarter of 2011 driven by the continued popularity of domestic streaming subscriptions. The subscriber cancellations in the second half of 2011, coupled with slower growth in the number of new subscribers joining our service, resulted in a 32.3% decrease in unique domestic net subscriber additions for the year ended December 31, 2011 as compared to the year ended December 31, 2010. The year-over-year increase in ending unique domestic subscribers was the primary driver in the 48.2% increase in consolidated revenues for the year ended December 31, 2011 as compared to the year ended December 31, 2010.In the Domestic streaming segment, we derive revenues from services consisting solely of streaming content offered through a subscription plan priced at $7.99 per month. In the Domestic DVD segment, we derive revenues from our DVDs-by-mail subscription services. The price per plan for DVDs-by-mail varies from $7.99 to $43.99 per month based on the number of DVDs that a subscriber may have out at any given point. Customers electing access to high definition Blu-ray discs in addition to standard definition DVDs pay a surcharge ranging from $2 to $4 per month for our most popular plans.
In the International streaming segment, we derive revenues from services consisting solely of streaming content offered through a subscription plan priced at approximately the equivalent of USD$7.99 per month. In September 2010, we began international operations in Canada. We expanded to Latin America and the Caribbean
The $1,042.0 million increase in our consolidated revenues was primarily due to the 44.6% growth in domestic revenues with the increase in international revenues contributing to 7.6% of the increase year-over-year. Domestic revenues increased $962.7 million as a result of the 49.1% growth in the domestic average number of unique paying subscribers driven by new streaming subscriptions. This increase was offset in part by a 3.0% decline in domestic average monthly revenue per unique paying subscriber, resulting from the popularity of the unlimited streaming subscription (introduced in November 2010) and a decline in the percentage of unique paying subscribers electing both a streaming and a DVD subscription following the pricing changes in the second half of 2011. During the year ended December 31, 2011, 73.6% of our new gross domestic unique subscribers chose only an unlimited streaming plan which is priced at $7.99 per month and we expect that this percentage will grow in future periods. At December 31, 2011, 88.9% of our total domestic unique subscribers had a streaming subscription while less than half (11.1 million) had a DVD subscription.
The $492.4 million increase in our consolidated revenues was primarily a result of the 40.9% growth in the domestic average number of unique paying subscribers arising from the continuous improvement to our customer experience which in turn, drove consumer awareness of our service benefits. This increase was offset in part by an 8.3% decline in the domestic average monthly revenue per unique paying subscriber, resulting from the continued growth in our lower priced subscription plans. In the fourth quarter of 2010, when we introduced the unlimited streaming plan, over one-third of new subscribers elected this option.
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