Overview of key financial and operating metrics for Netflix, up to and including Q2 2016. This is part of the Jackdaw Research Quarterly Decks Service, which offers similar decks on other major consumer technology companies too. Visit https://jackdawresearch.com/quarterly-company-decks/ to sign up.

1. Jan Dawson
Chief Analyst
(408) 744-6244
jan@jackdawresearch.com
@jandawson
NETFLIX Q2 2016
EARNINGS SLIDES

2. 2
• This deck is part of the Jackdaw Research Quarterly Company Decks
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• The intention is to highlight trends and patterns which are not
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INTRODUCTION
JACKDAW RESEARCH QUARTERLY DECKS SERVICE

3. 3
The charts in this deck are based on the company’s
reported financial and operating metrics, together with
other metrics derived from them by Jackdaw Research.
While every effort has been made to ensure the
accuracy of the data presented, and the absence of
errors, we make no guarantee of accuracy and accept
no liability for decisions made based on the information
contained in this document. Readers should always
consult the source documents if making financial or
other decisions regarding the company concerned.
DISCLAIMER

4. 4 Source: Netflix, Jackdaw Research analysis
CONSOLIDATED REVENUES
$ MILLIONS
0
500,000
1,000,000
1,500,000
2,000,000
2,500,000
Q1 2011Q3 2011Q1 2012Q3 2012Q1 2013Q3 2013Q1 2014Q3 2014Q1 2015Q3 2015Q1 2016

5. 5 Source: Netflix, Jackdaw Research analysis
REVENUES
SPLIT BY SEGMENT – US STREAMING, INTERNATIONAL STREAMING, US DVD
0%
25%
50%
75%
100%
Q4 2011 Q3 2012 Q2 2013 Q1 2014 Q4 2014 Q3 2015 Q2 2016
US streaming Intl streaming US DVD

6. 6 Source: Netflix, Jackdaw Research analysis
REVENUE GROWTH
YEAR ON YEAR BY SEGMENT
-100%
0%
100%
200%
300%
Q4 2012 Q2 2013 Q4 2013 Q2 2014 Q4 2014 Q2 2015 Q4 2015 Q2 2016
US streaming Intl streaming US DVD

7. 7 Source: Netflix, Jackdaw Research analysis
COMPANY MARGINS
-10%
0%
10%
20%
30%
40%
Q1 2011 Q3 2011 Q1 2012 Q3 2012 Q1 2013 Q3 2013 Q1 2014 Q3 2014 Q1 2015 Q3 2015 Q1 2016
Gross margin Operating margin Net margin

8. 8 Source: Netflix, Jackdaw Research analysis
CONTRIBUTION MARGINS
BY SEGMENT
-60%
-45%
-30%
-15%
0%
15%
30%
45%
60%
Q1 2013 Q3 2013 Q1 2014 Q3 2014 Q1 2015 Q3 2015 Q1 2016
US streaming Intl streaming US DVD

9. 9 Source: Netflix, Jackdaw Research analysis
US STREAMING CONTRIBUTION MARGIN
LONGER TIMELINE
0%
5%
10%
15%
20%
25%
30%
35%
40%
Q4 2011 Q2 2012 Q4 2012 Q2 2013 Q4 2013 Q2 2014 Q4 2014 Q2 2015 Q4 2015 Q2 2016

10. 10 Source: Netflix, Jackdaw Research analysis
SUBSCRIBER GROWTH
YEAR ON YEAR GROWTH IN PAID SUBSCRIBERS, BY SEGMENT
-6,000
-3,000
0
3,000
6,000
9,000
12,000
15,000
Q3 2012 Q1 2013 Q3 2013 Q1 2014 Q3 2014 Q1 2015 Q3 2015 Q1 2016
US streaming Intl streaming US DVD

11. 11 Source: Netflix, Jackdaw Research analysis
SUBSCRIBER GROWTH
QUARTER ON QUARTER GROWTH IN PAID SUBSCRIBERS, BY SEGMENT
-1,000
0
1,000
2,000
3,000
4,000
5,000
Q3 2012 Q1 2013 Q3 2013 Q1 2014 Q3 2014 Q1 2015 Q3 2015 Q1 2016
US streaming Intl streaming US DVD

12. 12 Source: Netflix, Jackdaw Research analysis
PAID SUBSCRIBERS
AT QUARTER END, THOUSANDS, BY SEGMENT
0
10,000
20,000
30,000
40,000
50,000
Q3 2011 Q1 2012 Q3 2012 Q1 2013 Q3 2013 Q1 2014 Q3 2014 Q1 2015 Q3 2015 Q1 2016
US streaming Intl streaming US DVD

13. 13 Source: Netflix, Jackdaw Research analysis
REVENUE PER MEMBER
QUARTERLY REVENUE PER PAID SUBSCRIBER, $, BY SEGMENT
20
25
30
35
Q1 2012 Q3 2012 Q1 2013 Q3 2013 Q1 2014 Q3 2014 Q1 2015 Q3 2015 Q1 2016
US streaming Intl streaming US DVD

14. 14 Source: Netflix, Jackdaw Research analysis
PROFIT PER MEMBER
QUARTERLY CONTRIBUTION PROFIT PER PAID MEMBER, $, BY SEGMENT
-60
-45
-30
-15
0
15
30
Q4 2011 Q2 2012 Q4 2012 Q2 2013 Q4 2013 Q2 2014 Q4 2014 Q2 2015 Q4 2015 Q2 2016
US streaming Intl streaming US DVD

15. 15 Source: Netflix, Jackdaw Research analysis
FREE TRIAL SUBSCRIBERS
NON-PAID MEMBERS AS % OF TOTAL SUBSCRIBERS, BY SEGMENT
0%
10%
20%
30%
40%
Q3 2011 Q1 2012 Q3 2012 Q1 2013 Q3 2013 Q1 2014 Q3 2014 Q1 2015 Q3 2015 Q1 2016
US streaming Intl streaming US DVD

16. 16 Source: Netflix, Jackdaw Research analysis
MARKETING COSTS
AS A % OF REVENUE, BY STREAMING SEGMENT
0%
20%
40%
60%
80%
100%
120%
Q1 2012 Q3 2012 Q1 2013 Q3 2013 Q1 2014 Q3 2014 Q1 2015 Q3 2015 Q1 2016
US streaming Intl streaming

17. 17 Source: Netflix, Jackdaw Research analysis
MARKETING COSTS
AS A % OF REVENUE, BY STREAMING SEGMENT, SHORTER TIMELINE
0%
10%
20%
30%
40%
Q1 2013 Q3 2013 Q1 2014 Q3 2014 Q1 2015 Q3 2015 Q1 2016
US streaming Intl streaming

18. 18 Source: Netflix, Jackdaw Research analysis
MARKETING COSTS
AS % OF REVENUES, TRAILING 4 QUARTERS, BY STREAMING SEGMENT
0%
10%
20%
30%
40%
50%
60%
Q1 2013 Q3 2013 Q1 2014 Q3 2014 Q1 2015 Q3 2015 Q1 2016
US streaming Intl streaming

19. 19 Source: Netflix, Jackdaw Research analysis
MARKETING COSTS
$ PER NET PAID SUBSCRIBER ADDED IN THE QUARTER
0
50
100
150
200
250
300
Q1 2012 Q3 2012 Q1 2013 Q3 2013 Q1 2014 Q3 2014 Q1 2015 Q3 2015 Q1 2016
US streaming Intl streaming

20. 20 Source: Netflix, Jackdaw Research analysis
MARKETING COSTS
$ PER NET SUBSCRIBER ADDED IN THE QUARTER, TRAILING 4 QUARTERS
0
10
20
30
40
50
60
70
Q4 2012 Q2 2013 Q4 2013 Q2 2014 Q4 2014 Q2 2015 Q4 2015 Q2 2016
US streaming Intl streaming

21. 21 Source: Netflix, Jackdaw Research analysis
COST PER SUBSCRIBER, US
ANNUAL COST OF REVENUE PER US PAID STREAMING SUBSCRIBER, $
58
60
62
64
66
68
70
Q4 2011 Q2 2012 Q4 2012 Q2 2013 Q4 2013 Q2 2014 Q4 2014 Q2 2015 Q4 2015 Q2 2016

22. 22 Source: Netflix, Jackdaw Research analysis
INTERNATIONAL STREAMING
QUARTERLY REVENUE AND COST OF REVENUE, $, INTERNATIONAL STREAMING
0
10
20
30
40
50
Q1 2012 Q3 2012 Q1 2013 Q3 2013 Q1 2014 Q3 2014 Q1 2015 Q3 2015 Q1 2016
Revenue per paid sub CoR per paid sub

23. Jan Dawson
Chief Analyst
(408) 744-6244
jan@jackdawresearch.com
@jandawson
FOR ANY QUESTIONS,
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