Netflix (NASDAQ:) shares dropped around 20% after-hours following the company’s reported Q1 results, with global streaming paid net additions coming in at -200,000 million, compared to 2.5 million expected. The net additions were affected by the suspension in Russia of Russian-paid memberships and the winding down of Russian paid members, which had a negative impact of 0.7 million. Net additions for Q1 were 0.5 million, excluding this effect. The company stated that the biggest challenge to membership growth lies in the continued soft acquisition of all regions.

The consensus estimate was $2.90. Q1 earnings per share came in at $3.53. The consensus estimate was $7.93 billion. Revenue increased 10% to $7.87 Billion. This is due to an 8% rise in streaming-paid memberships and a 22% increase in revenue per member (ARM).

According to company estimates, Q2/22 earnings per share (EPS) will be $3.00, as opposed to $3.01 consensus. Revenue is expected to reach $8.05 Billion, which compares to $8.21 billion consensus. It predicted a 2 million drop in global streaming-paid net additions for Q2, which was lower than the consensus forecast of 2.4million.

By Davit Kirakosyan