Streaming giant Netflix shared its first-quarter earnings report on Tuesday that revealed mixed results. The company managed to beat the Wall Street estimates on earnings per share (EPS) but failed to clear the mark on revenue and subscribers estimates.
Netflix reported revenue of $8.16 billion, coming just short of the expected $8.18 billion. The EPS in the first quarter was $2.88 versus the $2.86 expected, while the streamer added 1.75 million new subscribers compared to an estimated 2.3 million. The company also predicts EPS of $2.84 on $8.24 billion revenue for the second quarter, which is well below earnings of $3.05 per share on $8.5 billion revenue forecasted by analysts.
After the earnings report came out, Netflix shares dropped from Tuesday’s close of $333.70 per share to $306.50 at one point in after-hours trading. The stock later bounced back to $333.25 per share.
Netflix also shared an update about the future of its DVD rental business on Tuesday. The company will end the service after 25 years, with the final batch of discs set to be shipped at the end of September. The DVD rentals accounted for just $145.69 million in revenue last year as more customers shifted to enjoying their movies and television shows through streaming.