Netflix Inc (NASDAQ:NFLX, ETR:NFC) shares moved lower afterhours after the company’s revenue forecast for the current quarter fell short of expectations.
The streaming platform expects revenue of $9.49 billion for the second quarter, representing 16% growth from the same period last year but missing Wall Street estimates of $9.55 billion.
Earnings per share (EPS) of $4.68 were ahead of estimates of $4.53.
Netflix’s weak sales forecast drew focus from its better-than-forecast performance in the first quarter.
It added 9.33 million new subscribers during the period, up from 1.8 million in the year-ago quarter and significantly higher than the 5 million expected by analysts.
Revenue grew 14.8% year-over-year to $9.37 billion attributed to membership growth and pricing, ahead of estimates of $9.26 billion and the company’s forecast of $9.24 billion.
EPS of $5.28 topped Street estimates of $4.51 and was ahead of Netflix’s guidance of $4.49.
“We have built a hard-to-replicate combination of a strong slate, superior recommendations, broad reach and intense fandom, which drives healthy engagement on Netflix,” the company said in a letter to shareholders.
“Improvement in these key areas is the best way to delight our members and continue to grow our business.”
Netflix shares traded down 2.5% at $595 shortly following the release of its earnings report.