Shares of Netflix dropped 15 percent in after-hours trading after the streaming company reported that it missed the mark in subscriber growth for the second quarter.
Netflix added 1.7 million subscribers in the quarter, off its forecast of 2.5 million new customers by 800,000. The company was also below the 3.3 million members that it added in the same period last year.
Netflix has 83 million total subscribers, according to its earnings call Monday, July 18.
“We are growing, but not as fast as we would like or have been,” read a letter sent to shareholders. “Disrupting a big market can be bumpy.
The company is blaming its recent press coverage on price increases to its service as the reason for higher-than-expected churn.
Despite not hitting the subscriber growth mark, Netflix’s earning was $41 million for the quarter, compared to $26 million a year ago. Earnings per share were 9-cents, up from 6-cents a year ago. Revenue was $2.1 billion, which was considered in-line with what analysts were projecting.
Shares of Netflix closed Monday at $98.81.
Disclosure: Streaming Observer is supported by readers. Articles may contain referral links. For more information, see the disclosure at the bottom of the page.
Latest posts by Andrew Dodson (see all)
- How to Watch Celebrity Family Feud Online without Cable - June 4, 2017
- Netflix’s Movie Library Grew in Size While Slightly Dipping in Quality in 2016 - February 7, 2017
- Netflix Now Only Has 31 Movies from IMDB’s Top 250 List - October 11, 2016