Shares of Netflix (NASDAQ:NFLX) plunged in after-hours trade after the company’s growth in membership numbers failed to meet its forecast for the second quarter for the first time in four quarters.
The company added 670,000 domestic subscribers in the second quarter, which fell far short of the 1.23mln subscribers that analysts had estimated would be added.
It also missed on international subscriptions as well as it added just 4.47mln subscribers internationally versus the 5.11mln which had been expected by Wall Street.
Netflix’s revenue also missed estimates as it posted revenue of US$3.91bn compared to the US$3.94bn projected by the Street.
Its earnings per share of US$0.85 did manage to beat the consensus estimate of US$0.79 per share.
Read: Some analysts turn on Netflix ahead of today's second-quarter results
“We had a strong, but not stellar Q2, Netflix management said in their quarterly letter to shareholders. “This Q2, we over-forecasted global net addition … as acquisition growth was slightly lower than expected.
Netflix shares fell 14% to US$344 in after-hours trade.