Netflix – one of the largest online streaming services in the world, reported its Q3 earnings. The results didn’t impress Wall Street.
After the closing bell, Netflix reported 2.2 million new paid subscribers. The figures came both below the 2.5 million expected by the company and the $3.3 million forecasted by the market, respectively. In the US and Canada, the company added 180,000 subscribers, the rest coming from the Asia-Pacific region.
Q3 wasn't as profitable for Netflix as expected. Its EPS came in at $1.74, below the $2.13 estimated by the market. Still, it is 18% higher than last year's figures.
The revenue came in 23% higher than last year’s $5.25 billion.
For the next quarter, Netflix expects to add 6 million subscribers. The markets are looking for 6.5 million. For the full year, the company expects the free cash flow to reach at least $2 billion. The number is said to be double than last year’s.
Following the report, Netflix stock price closed 5% lower.
Sources: businessinsider.com, finance.yahoo.com