Netflix, Inc. (NASDAQ:NFLX) shares slumped to new sixteen-month low in extended trading session on Monday following the video-rental service provider said that it lost around 810,000 subscribers in its third-quarter, worse than its own projections earlier in September.
Netflix reported a total subscribers count at 23.79 million as of Sept. 30, compared to 24.6 million three months earlier, while the company was targeting a loss of 600,000 users.
From a financial perspective, the company managed to show better results with its net income coming at $62 million or $1.16 a share on revenue of $822 million, well ahead of analysts’ estimates of 94 cents in earnings on revenue of $812 million.
Going forward, Netflix projects to earn $19 million to $37 million, or 36 cents to 70 cents a share on revenue of $875 million, missing analysts’ estimates of profit of $1.10 a share on sales of $919 million.
Netflix suffered a backlash from members earlier this year when it announced an unexpected price hike for customers who receive both its online video streaming service and its DVD-by-mail service.
Netflix lost its shine among consumers and investors in its local markets, by raising prices as much as 60% in the U.S. Moreover, it also decided to separate its DVD rental service from the online streaming unit, which was quickly retracted.
The company projects to gain U.S. subscribers in the current quarter without specifying any other details.
Shares of NFLX slumped about 28% to $85.75 in after-hours session. The company has eroded about $10 billion of its market-value from its all-time closing high of $304.79 on July 13.
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