• Chink in the armour – subscribers grew about one million less than expected
• Prompted a sell-off with the stock plunging as much as 14% in after hours trading
• EPS at $0.85, 7%, beat on estimates
• Revenue at $3.9 billion, 0.8% miss on estimates of $3.94 billion ~ 36% yearly growth
• EBITDA at $563 million, beat on estimates
• Net debt around $3.8bn
Netflix declined to a 6-week low as the company delivered a "strong, but not stellar, second quarter". Although the stock fell hard in afterhours trading, to put that in perspective, it has still delivered over 100% return YTD, and around 150% in the past year.
Netflix forecast that it would add 1.2 million new US subscribers in the second quarter, this missed estimates as subscribers only grew by 674,000, indicating peak saturation levels may have been reached.
In the international market, the company added 4.5 million new subscribers in the second quarter, below Netflix's expectations for 5 million. The international miss sparks alarm as the majority of future growth is expected to come from overseas.