Netflix (NFLX) Results: Investors Dance In Streets

Investing

Published: October 22, 2007 3:15 pm

Wall St. could tell right away that it was a huge quarter. Within seconds of the earnings release, Netflix (NFLX) shares were up 18% to almost $27.20

Revenue for the third quarter of 2007 was $294.0 million, representing 15 percent year-over-year growth from $256.0 million for the third quarter of 2006

GAAP net income for the third quarter of 2007 was $15.7 million, or $0.23 per diluted share, compared to GAAP net income of $12.8 million, or $0.18 per diluted share, for the third quarter of 2006.

Free cash flow for the third quarter of 2007 was $36.1 million, compared to $22.3 million in the third quarter of 2006.

Netflix ended the third quarter of 2007 with approximately 7,028,000 total subscribers, representing 24 percent year-over-year growth from 5,662,000 total subscribers at the end of the third quarter of 2006 and 4 percent sequential growth from 6,742,000 subscribers at the end of the second quarter of 2007.

The company raised guidance. For the full year NFLX should finish with subscribers of 7.3 million to 7.5 million, up from 6.8 million to 7.3 million previously forecast. Revenue of $1.2 billion to $1.205 billion, up from $1.17 billion to $1.185 billion, the old guidance.

The crowd went wild.

Douglas A. McIntyre

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