Spreadsheet: 71b516f8-0297-471c-a5a8-b16c932bd513
Sheet: Income Statement

Netflix, Inc.
Consolidated Statements of Operations
(unaudited)
(in thousands, except per share data)
 |  |  |  |  | Three Months Ended |  |  |  | Twelve Months Ended | Three Months Ended |  |  |  | Twelve Months Ended | Three Months Ended |  | Six Months Ended
 |  |  |  |  | March 31, | June 30, | September 30, | December 31, | December 31, | March 31, | June 30, | September 30, | December 31, | December 31, | March 31, | June 30, | June 30,
 |  |  |  |  | 2010 | 2010 | 2010 | 2010 | 2010 | 2011 | 2011 | 2011 | 2011 | 2011 | 2012 | 2012 | 2012
Revenues |  |  |  |  | 493665 | 519819 | 553219 | 595922 | 2162625 | 718553 | 788610 | 821839 | 875575 |  | 869791 | 889163
Cost of revenues:
 | Subscription |  |  |  | 259560 | 265387 | 292406 | 336756 | 1154109 | 376992 | 428203 | 471823 | 512578 |  | 564015 | 583636
 | Fulfillment expenses |  |  |  | 47602 | 49547 | 52063 | 54034 | 203246 | 61159 | 61775 | 64794 | 62577 |  | 59918 | 59792
 |  | Total cost of revenues |  |  | 307162 | 314934 | 344469 | 390790 | 1357355 | 438151 | 489978 | 536617
Gross profit |  |  |  |  | 186503 | 204885 | 208750 | 205132 | 805270 | 280402 | 298632 | 285222
Operating expenses:
 | Marketing |  |  |  | 75219 | 74533 | 81238 | 62849 | 293839 | 104259 | 94983 | 89108 | 114288 |  | 135900 | 118224
 | Technology and development |  |  |  | 37399 | 37863 | 42108 | 45959 | 163329 | 50905 | 57865 | 69480 | 80783 |  | 82801 | 81547
 | General and administrative |  |  |  | 15540 | 15147 | 15903 | 17871 | 64461 | 22998 | 30670 | 29792 | 34477 |  | 29092 | 29810
 | Legal settlement |  |  |  | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 9000 |  | 0 | 0
 |  | Total operating expenses |  |  | 128158 | 127543 | 139249 | 126679 | 521629 | 178162 | 183518 | 188380
Operating income (loss) |  |  |  |  | 58345 | 77342 | 69501 | 78453 | 283641 | 102240 | 115114 | 96842
Other income (expense):
 | Interest expense |  |  |  | -4959 | -4893 | -4945 | -4832 |  | -4865 | -5303 | -4915 | -4942 |  | -4974 | -5006
 | Interest and other income (expense) |  |  |  | 972 | 921 | 853 | 938 |  | 865 | 1013 | 1696 | -95 |  | -116 | -493
Income (loss) before income taxes |  |  |  |  | 54358 | 73370 | 65409 | 74559 | 267696 | 98240 | 110824 | 93623
Provision (benefit) for income taxes |  |  |  |  | 22086 | 29851 | 27442 | 27464 | 106843 | 38007 | 42610 | 31163 | 21616 |  | -2441 | 4491
Net income (loss) |  |  |  |  | 32272 | 43519 | 37967 | 47095 | 160853 | 60233 | 68214 | 62460
Net income (loss) per share:
 | Basic |  |  |  | 0.6099298822551076 | 0.8291544411843158 | 0.7281462161021826 | 0.8956146356306101 | 3.0621751794247 | 1.141663033795182 | 1.300057175528874 | 1.19 | 0.66 | 4.28 | -0.08 | 0.11 | 0.03
 | Diluted |  |  |  | 0.5891738931994523 | 0.8011008025918562 | 0.7039921381023901 | 0.8690076392220542 | 2.962083824395993 | 1.110367584706706 | 1.26 | 1.16 | 0.64 | 4.16 | -0.08 | 0.11 | 0.03
Weighted average common shares outstanding:
 | Basic |  |  |  | 52911 | 52486 | 52142 | 52584 | 52529 | 52759 | 52470 | 52569 | 53582 | 52847 | 55456 | 55526 | 55491
 | Diluted |  |  |  | 54775 | 54324 | 53931 | 54194 | 54304 | 54246 | 53909 | 53870 | 55439 | 54369 | 55456 | 58809 | 58878