Shares in Netflix plunged by more than 14pc in after-hours trading, after it missed analyst expectations for subscriber growth by more than one million users, in what it called a "strong but not stellar" quarter.
The California-based company added 670,000 net subscribers in the US, far below the 1.19 million net additions expected by analysts polled by Thomson Reuters.
Netflix shares dive after disappointing quarterly results
Cash burn - something Netflix has been reducing for the past few quarters - also had a noticeable uptick. For Q3, it projects 650,000 net adds in the US and 4.35 million overseas. Analysts were expecting 6.3 million - 1.2 million in the United States and 5.1 million internationally, according to Bloomberg. For the current quarter ending in October, Netflix said it expects revenue in the range of $3.99 billion.
Today Netflix reported their 2nd quarter 2018 numbers. Far from it, revenue for the quarter checked in at $3.1 billion, a modest 10% increase from the same quarter a year-ago. As of June 30, Netflix had 130 million subscribers, including 57.4 million in the U.S. Sixteen analysts surveyed by Zacks expected $3.94 billion. All told, Netflix now boasts upwards of 130 million subscribers across the globe.More news: Recent AU graduate charged with acting as Russian agent in US
In their letter, Netflix officials acknowledged that the company's subscriber growth was lower than anticipated but didn't off much of an explanation of how it came up short.
Netflix already has been battling challenges from Amazon, Google's YouTube and Hulu in the video streaming market, and it is likely to face even stiffer competition as other formidable rivals try to muscle into the market. For the first time, Netflix generated more revenue outside the U.S.: global revenue totaled $1.92 billion and U.S. revenue was $1.89 billion for Q2. "Our strategy is to simply keep improving, as we've been doing every year in the past".More news: Canada's Hudson's Bay Retail Store Drops Ivanka Trump Brand
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