Shares of Netflix dropped as much as 11% in after-hours trade following the report but recovered to gain 1.4%.
The company began rolling out its solution for password-sharing – offering a “paid sharing” option – in 12 countries in February but is delaying expansion.Article content For April through June, the company forecast $8.242 billion in revenue and $2.86 in diluted EPS. Wall Street had been projecting $8.476 billion for revenue and $3.05 for diluted EPS.
Netflix added nearly 9 million subscribers in 2022, half as many as the 18 million gained in the prior year, with much of that growth coming from Asia, notes research firm MoffettNathanson. The gains it made in Asia and Latin America have impacted the average revenue per user, spurring Netflix to make changes to its business model, the firm said.