Despite appearances, confinement does not smile on Netflix either. The streaming giant saw its stock market share plunge 11% on Tuesday after the publication of its quarterly results.
While the streaming giant’s quarterly revenue and profit is in line with analysts’ expectations, however, the company has largely missed its own subscriber target, while acknowledging that subscriber growth will remain under pressure this quarter, in the awaiting new content planned for later in the year.
“We ended the first quarter of 2021 with 208 million paid memberships, up 14% from the previous year, but below our guidance forecast of 210 million paid memberships,” said the Netflix management in a press release. “We believe that the growth of paid memberships has slowed due to the great advance of Covid-19 in 2020 and a lighter content list in the first half of this year, due to production delays linked to the health crisis Covid-19. “
4 million new subscribers
Netflix added 3.98 million global paid streaming subscribers, on a net basis, well below the company’s forecast of 6 million, and Wall Street’s expectations of 8.7 million. “We continue to forecast a solid second half with the return of new seasons of some of our greatest hits and an exciting film program,” however wants to reassure the streaming giant.
“In the short term, there is some uncertainty related to the health crisis; in the long term, the rise of streaming to replace linear TV worldwide is the clear trend in entertainment.” Revenue for the three months ended March increased 24% year-over-year to $ 7.16 billion.
Analysts for their part expected revenues estimated at 7.13 billion dollars. For the current quarter, Netflix management expects revenue of $ 7.3 billion and EPS of $ 3.16. The consensus was for $ 7.37 billion and $ 2.67 per share. The company plans to add just 1 million paying subscribers this quarter, which would be down from 10 million in the second quarter of a year earlier, and well below Wall Street’s average estimate of 4 , 2 million subscriptions.