Online entertainment streaming service Netflix, Inc. (NFLX) posted better-than-expected second-quarter results, but the company reported subscriber numbers that were below expectations.
The company reported 530,000 subscriber additions to its streaming service, below the 800,000 high-end of its guidance range that some on the Street had expected. This brings the total number of domestic streaming subscribers to 23.94 million.
The company forecast third-quarter total domestic streaming subscribers in the range of 24.9 million to 25.7 million, or net additions between 1 million and 1.8 million subscribers. The company expects the Olympics to have a negative impact on subscriber adds, but said that if it finishes the third-quarter with close to 1.8 million additions, it will still be on track for 7 million additions, adding, "otherwise it would be challenging to achieve that goal by year end."
The company also warned of a fourth-quarter loss, as a result of expansion into a fourth international market, which it plans to say more about "later in Q3," according to the release.
For the second quarter, Netflix posted a profit of $6.16 million, or 11 cents a share, compared with year-ago profit of $68.21 million or $1.30 a share.
Revenue came in 13% higher at $889.2 million, compared with year-ago revenue of $788.61 million. The Street had expected earnings of 5 cents a share on revenue of $888.9 million, according to a Thomson Reuters poll.
For the third quarter, Netflix forecast a net loss of $6 to possible profit of $8 million, with earnings per share anywhere between a loss of 10 cents a share to a profit of 14 cents a share. The Street was expecting a profit of 11 cents a share, according to a Thomson Reuters analyst poll.
Shares of Netflix were down more than $12 a share after the bell, or 15.14%, upon the release of results. The stock is down 71%, year-over-year.