Streaming video service Netflix (NFLX) , which last quarter spooked investors by cutting its forecasts for subscriber growth, said Monday it added fewer subscribers, sending its stock down by 13.1% in after-hours trading.
The company, known for its original shows including House of Cards and Orange is the New Black, said it added 1.7 million new subscribers in its second quarter, below its forecast 2.5 million new customers and the 3.3 million it added in the same quarter a year earlier.
"We are growing but not as fast as we would have liked or have been," the company said in a letter to its shareholders. "Disrupting a big market can be bumpy, but the opportunity ahead is as big as ever, and we continue to improve every aspect of our business."
On a conference call Monday, Netflix CFO David Wells said the company expected some of the weakness in new subscriber numbers to continue until potentially the end of November.
Netflix earned 9 cents a share on $2.1 billion in revenue. Wall Street consensus had been for earnings of 2 cents a share and $2.11 billion in revenue.
In aftermarket trading, its stock fell to $85.85 a share, off by $12.96.
The company said it would have made its overall target for new customers but experienced "expectedly" higher churn -- or customers who dropped the service -- as a result of its decision earlier this year to hike its monthly subscription price in the U.S. to $9.99 for its most popular package from its long-time price of $7.99.
