Investing.com – Netflix shares (NFLX) died late Wednesday after streaming giant missed both second-quarter subscriber growth and revenue outlook.
Netflix (NASDAQ 🙂 reported revenue of 60 cents share, off Investing .com for 56 cents per share. But revenues of $ 4.92 billion were slightly below projections of $ 4.93 billion.
Netflix fell more than 12% in the aftermarket.
The result danger was driven by lowering global subscriber numbers, the company's main growth driver. Global deficits fell short of analysts' estimates.
Global subscriber numbers increased by 2.7 million and projected expectations of 5 million for the quarter. It was also in line with the company's guidance in April for 4.7 million international subscribers. Domestic paid subscriber fell by 1
The company said the competition was not a factor behind the weaker subscriber expansion in the quarter, and the blame owed to regions where it increased the price of streaming service. It also said that the content released in the second quarter had generated weaker than expected subscriber grants.
"Our missing forecast was over all regions, but a bit more in regions with price increases," Netflix said. "We do not believe that competition was a factor since there was no significant change in the competitive landscape during the second quarter, and competitive intensity and penetration varies across the region (while our over-assumption was in all regions)."  "We also do not think that Q2's slate has increased less growth in paid net than we had expected. In addition, Q1 was so big for us (9.6m net adds), there may have been more propulsion power than we figured. Quarterly over-forecasts, we have found that underlying long-term growth was unaffected and we focused on the foundations of our business served us well. "
With the streaming wars, the pace of launching streaming services by rivals such as Walt  Disney (NYSE :), Netflix dismissed the fear of a further slowdown in subscriber growth and made an improvement in the third quarter.
"While our US paid membership was mainly flat in the second quarter, expect it to return to more typical growth in Q3 and see that in these early weeks in Q3. We forecast Q3 globally paid net deposits at 7.0m, up to 6.1m in Q3 & # 39; 18, with 0.8m in the US and 6.2m internationally, "Netflix added.
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