(Netflix) Netflix stock lost more than 25% on Wednesday after reporting 200,000 fewer subscribers in the first quarter of 2022 from the previous quarter.
The net subscriber outflow happens despite the company previously guiding a 2.5 million addition quarter-over-quarter and 4.0 million from the prior year.
Netflix said that its suspended Russian operations and the winding down of its paid memberships in the country resulted in a 0.7 million outflow on paid net additions.
The quarter is the first time Netflix has lost customers since October 2021, with a range of other factors including a higher pricing, inflation, and competition also in play.
The streaming giant said that as growth slows in mature markets, it will seek expansion in other parts of the globe, including tapping on the local-language content.
Netflix now forecasts 219.64 million global streaming paid memberships in the second quarter, compared to 221.64 million it reported in the first quarter.
Despite the subscriber slowdowns, Netflix managed to report a revenue of $7.868 billion in the first quarter, up from $7.163 billion in the prior year and $7.709 billion from the prior year. The company expects the revenue to rise to $8.053 billion in the second quarter.
Net income was reported at $1.597 billion in the first quarter, up from $1.707 billion in the prior year and $607 million in the fourth quarter. Net income is expected to fall to $1.354 billion in the second quarter.
NFLX: NASDAQ is down -25.05% on premarket
