Netflix shares dive as subscriber growth falls short

Ruben Ruiz
July 17, 2018

Netflix shares plunged in after-hours trading after the streaming giant's subscriber growth fell far short of Wall Street's expectations. Specifically, Netflix is anticipating a net add of 5 million new subscribers for the September quarter, a tad below some analyst projections that saw Netflix bringing 6 million new subscribers on board.

Netflix predicted it will add 5 million subscribers in the current quarter, which ends in September, slightly slower than the pace a year ago.

Subscriber additions: 5.1 million total - 670,000 in the United States and 4.47 million internationally.

Cash burn - something Netflix has been reducing for the past few quarters - also had a noticeable uptick.

Despite the "near-term gut punch", Netflix is still well-positioned for future growth, GBH Insights analyst Daniel Ives wrote in a note.

The company reported quarterly revenue of $3.91 billion and earnings per share of 85 cents.

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Subscriber additions: 5.2 million total - 1.1 million in the USA and 4.1 million internationally.

The company did roughly meet analyst expectations on earnings, at $3.91 billion compared to estimates of $3.94 billion.

We were honored last week with the most Emmy nominations of any network.

The good news is Netflix did see a 43% increase in streaming revenue likely from the higher subscriber numbers and new price increase.

Going forward, "We anticipate more competition from the combined AT&T/WarnerMedia, from the combined Fox/Disney or Fox/Comcast as well as from worldwide players like Germany's ProSieben and Salto in France", the company said in the investor letter.

Other reports by GizPress

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