USA paid subscribers continued to grow at a slower pace than we previously projected, with trailing 12-month paid net adds at 3.7 million in the quarter, down 32% from 5.4 million at the end of first-quarter 2016, which was down 9% versus 2015.
Netflix expects to add 2.6 million subscribers internationally next quarter - it launched in 130 additional countries past year - and 600,000 subscribers in the USA, both which exceed analyst estimates.More news: Fantastic Foden gives City Youth Cup chance
Dwelling on the subscriber guidance, the analyst said the company's domestic subscriber guidance of 0.6 million was ahead of his estimate of 0.21 million and the consensus estimate of 0.19 million.
Its shares dropped as much as 3 per cent in after-hours trading before rebounding to gain 1.3 per cent.
Despite the growth, subscription numbers fell short of expectations - the company previously predicted 1.5 million in the USA and 3.7 million internationally.More news: Barcelona out of the UEFA Champions League
"We have come to see these quarterly variances as mostly noise in the long-term growth trend and adoption of internet TV", the company said in a statement (PDF). Well-marketed original series ventures can produce returns in excess of money spent and can also be less expensive to create than licensing fees would be for a film or television series.
"With a growing member base spread across the world, we seek to please diverse tastes with a wide breadth of content", Netflix said. Viking Global Investors LP increased its stake in Netflix by 145.5% in the fourth quarter.
That would be a shift for Wall Street, which has focused on subscriber numbers, said Needham & Co analyst Laura Martin. Netflix burned $422.5 million of cash in Q1, and expects to issue additional debt in Q2 to help fund future losses. "So it's a risky business".More news: One Of Congress' Most Powerful Figures Isn't Running For Re-election
Based in Los Gatos, California, Netflix now has a market value of approximately $63 billion. It also expects to earn $.15 per share vs. $.09 a year earlier, on sales of $2.76 billion, up 31%, for the second quarter. HBO has 134 million subscribers worldwide, including viewers paying for an internet-only version of the channel that was inspired by Netflix's success.
- Officer, Suspect Killed in Attack in Downtown Paris
- Cannot be complacent about potential threat of N. Korean missiles - UK minister
- Pence avoids direct answer on North Korea sabotage
- Nawaz Sharif to remain Pakistan PM, says Supreme Court
- There's evidence! The Pill does make women feel lousy
- Fox News Cans The O'Reilly Factor
- Monaco defeat Dortmund to advance to Champions League semis
- Trudeau defends Canada's dairy system against Trump protectionist charge
- How Trump's 'Buy American' order could play out
- Analysts Near-Term outlook: Cardinal Health, Inc. (CAH), Occidental Petroleum Corporation (OXY)