Netflix missed huge on both domestic and international subscriber additions in its Q2 earnings on Monday.
“We are growing, but not as fast as we would like or have been,” Netflix said in the letter to shareholders.
The stock plunged over 15% immediately following the news.
Netflix also gave guidance for Q3 that was well below what Wall Street was hoping for in both domestic and international additions.
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Here are the numbers:
- Q2 EPS (GAAP): 9 cents versus Wall Street forecasts of 2 cents, and Netflix guidance of 2 cents.
- Q2 Revenue: $1.97 billion versus Wall Street forecasts of $2.11 billion.
- Q2 US subscriber growth (net additions): 160,000 versus Wall Street forecasts of 509,000, and Netflix guidance of 500,000.
- Q2 international subscriber growth (net additions): 1.52 million versus Wall Street forecasts of 2.15 million, and Netflix guidance 2.0 million.
- Q3 subscriber growth guidance (domestic): Guidance of 300,000, versus Wall Street forecasts 695,000.
- Q3 subscriber growth guidance (international): Guidance of 2.0 million, versus Wall Street forecasts 2.54 million.
Netflix blamed some of the trouble on people cancelling at a higher rate than expected. “Gross additions were on target, but churn ticked up slightly and unexpectedly,” the company wrote. The company said that competition from the likes of Hulu and Amazon did not contribute to the miss.
Netflix also said it did not believe that the market in the US was saturated, even though its domestic subscriber growth continued to slow.