Netflix Reports Growth

Revenues, income jump in Q4.

Netflix reports that its total revenues and subscriber rate each grew more than 75% in the fourth quarter.

The Los Gatos, Calif.-based online rental service earned $143.9 million in revenues in the fourth quarter, up 77% over the $81.2 million the company reported in the same period last year. For the fiscal year 2004, revenues increased 86% to $506.2 million.

Fourth-quarter net income increased 112% year-over-year to $4.8 million, compared to $2.3 million in 2003. For the fiscal year, net income increased about 69% to $20.8 million.

By the end of the fourth quarter, Netflix had 2.61 million subscribers. This is an increase of 76% from the 1.48 million subscribers the service had by the end of 2003.

Household penetration reached 2.3% by the end of the fourth quarter, vs 1.3% in the same period last year.

Netflix says it expects first-quarter 2005 revenues to rise from $149 million to $154 million. Since the report yesterday (Jan. 24), Netflix stock rose 2.69% to $11.44.