In its Q1 2017 earnings report today, the video streaming giant missed expectations on subscriber growth, both domestically and internationally. Those are closely watched metrics for Netflix, and the slower-than-expected growth is certain to spook investors. Domestically, Netflix added 1.42 million new customers in the first three months of this year, compared to consensus estimates of 1.59 million. Internationally, Netflix added 3.53 million, versus estimates of 3.9 million. It’s a big difference from three months ago, when Netflix posted a record-breaking 7.05 million new members on the strength of buzzy new shows like Stranger Things.
There is some good news, though: The company beat on earnings with EPS of 40 cents compared with a Thomson Reuters estimate of 37 cents. Total revenue of $2.64 billion was in line with estimates. Despite those bright numbers, shares were down about 1% in after-hours trading. Read Netflix’s Q1 letter to shareholders here.