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Netflix (NASDAQ: NFLX) reported on Tuesday a loss of 200,000 subscribers in the first quarter for the first time in more than a decade.
Shares of the company tumbled more than 25% in extended hours and erased about $40 billion of its stock market value.
Netflix had earlier said that it expected to add 2.5 million net subscribers during the first quarter. The streaming company forecasted a global paid subscriber loss of 2 million for the second quarter as well.
Netflix said that due to suspension of its services in Russia, the company lost 700,000 subscribers. The streaming platform would have seen an addition of 500,000 subscribers in the quarter if it had not shut shop in Russia.
First quarter performance
Revenue increased nearly 10% in the quarter to $7.87 billion, compared to expectations of $7.93 billion.
Net income of the company fell 6.4% to $1.6 billion, down from $1.7 billion the year prior.
Netflix also said that the performance was affected due to stiff competition from other platforms and password sharing.
“Streaming is winning over linear, as we predicted, and Netflix titles are very popular globally. However, our relatively high household penetration — when including the large number of households sharing accounts — combined with competition, is creating revenue growth headwinds,” the company wrote in a letter to shareholders.
Picture Credits: Reuters
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