By Yasin Ebrahim
Investing.com -- Netflix reported Tuesday reported first-quarter revenue and guidance that fell short of Wall Street expectations just as many were expecting the streaming giant to benefit from the launch of its ad-supported tier and a crackdown on password sharing.
Netflix Inc (NASDAQ:NFLX) fell more than 8% in afterhours trading following the report.
Netflix announced earnings per share of $2.88 on revenue of $8.16 billion. Analysts polled by Investing.com anticipated EPS of $2.86 on revenue of $8.47 billion.
Netflix added 1.75 million users, missing analyst estimates of about 2.41M net adds.
Looking ahead, the streaming giant said its revenue of $8.2B is up 3% year over year, but short of analysts' expectations.
The subdued outlook on second-quarter revenue comes as the streaming giant was expected to have benefited from the launch of an ad-supported tier and a crackdown on password sharing.
But the company forecast that second-quarter paid net adds were expected to be “roughly similar to Q1’23.”