Shares of Netflix sank 26.85% in pre-market trading after the company lost 200k subscribers in Q1 and revenue rose by 9.8%, according to a press release by Netflix on Tuesday.

  • The streaming giant’s paid net additions dropped by 0.2 million. The suspension of service in Russia and the closure of all Russian paid memberships led to a decline of 0.7 million in paid net additions.
  • The company stated that the main challenge for membership growth is continued soft acquisition across all market regions. 
  • For Q2 of 2022, Netflix expects that the paid net additions will fall by 2M compared to 1.5M, the same quarter last year.
  • In addition to 222M paying households, Netflix also forecasts that its service is being shared with more than 100 million additional households, including more than 30M in the United States and Canada region.

The company’s nearly 10% revenue growth in the quarter was attributable to an 8% year-on-year jump in average streaming paid memberships and 2% year-on-year growth in average revenue per membership. NFLX down -26.85%, DIS down -4.49%, pre-market trading