Netflix's stock sunk more than 20% in after-hours trading Tuesday after the streaming giant said it lost 200,000 subscribers in the first quarter — its first subscriber loss in a decade. It also missed investor expectations on revenue.
Why it matters: Netflix's stock was already down more than 40% year-to-date, in large part due to increased competition and slowed user growth forecasts from Netflix for Q1.
Details: "Our revenue growth has slowed considerably as our results and forecast below show," Netflix said in the opening line of its note to shareholders, blaming its "relatively high household penetration," for creating "revenue growth headwinds."
By the numbers, per CNBC:
- EPS: $3.53 vs $2.89, according to a Refinitiv survey of analysts.
- Revenue: $7.78 billion vs $7.93 billion, according to a Refinitiv survey of analysts.
The big picture: Netflix in March began to test a crackdown on password sharing as a means to increase subscriptions.
- On Tuesday, the company said that in addition to its 222 million paying households, it estimates that Netflix is being shared with over 100 million additional households not paying for the service, including over 30 million in the US and Canada — its most lucrative market.
Go deeper ... Netflix's earnings over the past year:
