Netflix reported second quarter earnings after the market closed today. Its shares quickly tumbled 15% in after hours trading after the company missed targets on subscriber growth.
During Q2 Netflix added just 1.7 million members, short of the company’s own forecast of 2.5 million new customers and significantly below the 3.3 million members that Netflix added in the same period of last year.
Netflix said that part of the reason for the disappointing quarter was that churn picked up slightly. Netflix now has 83 million total subscribers.
Netflix’s net income was $41 million for the period, compared to $26 million last year. Earnings per share were 9 cents, up from 6 cents last year, and well above the consensus estimate of 2 cents. Revenue was $2.1 billion, in line with what analysts’ estimates.
Netflix shares closed Monday at $98.81 and in after-hours trading have gone as low as $81.84.