Netflix Quarterly Earnings Analysis: By The Numbers

Watching a movie via Netflix online streaming on a laptop computer, UK
Ian Dagnall/Alamy

Netflix (NFLX) just reported its preliminary financial results for the quarter that ended Sept. 30, based upon which we provide a unique earnings-release-based analysis of its performance. Our analysis focuses on the company's performance for the same quarterly period on a year-on-year basis (unless stated otherwise).

NFLX-US is one of the first companies amongst its peer group to announce earnings for this period.

Here are the highlights:

  • Summary numbers: Revenues of $1,409.43 million, net earnings of $59.30 million and EPS of $0.96. Performance focus on earnings: same period year-on-year change in earnings of 86.33% better than change in revenues of 27.44%

  • Gross margins now 83.28% from 81.14% compared to the same period last year, EBITDA margins now 58.83% from 57.82%

  • Potential weakening of the balance sheet? Year-on-year change in Operating Cash Flow of -207.92% trailed its change in earnings

  • Earnings growth from operating margin improvements as well as from unusual items

Netflix, Inc. 448.59 Movies/Entertainment USD 299.5 - USD 489.287 USD 27025.9 Mil. October 16, 2014 NFLX-US USD USD 2013-12-31 00:00:00 N/A 2014-09-30 00:00:00