Netflix NFLX.O blew past Wall Street expectations on new customers for the second straight quarter on Thursday but signaled the positive surprises could be over, forecasting revenue growth slightly below analyst targets.
Shares of the streaming video pioneer were down 4.2 per cent at US$585.41 in after-hours trading.
The company said its ad-supported streaming plans helped bring in 9.3 million new customers, nearly double the consensus forecast of analysts polled by LSEG. For the current quarter, it projected revenue of US$9.49 billion compared with analyst expectations of US$9.537 billion.
Netflix executives have urged investors to focus on revenue and operating margins when assessing its progress. The company said it will stop reporting subscriber additions each quarter starting with the first quarter of 2025, and instead will announce them only when major milestones are reached.
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“This change is really motivated by wanting to focus on what we see are the key metrics that …