Netflix signed up far fewer subscribers than it forecast in the second quarter of 2018.
The company said it added 670,000 streaming customers in the U.S., below its guidance of 1.2 million new subscribers. Internationally, the company added 4.47 million new subscribers, short of its guidance for 5 million. Wall Street had expected the company to report even more subscribers than it had forecast.
The company also said it expects 5 million subscribers in the third-quarter, lower than Wall Street’s expectations for 6 million.
Shares of Netflix, which have more than doubled since the start of the year, dropped by around 14 percent in after-hours trading.
Revenue for the quarter came in at $3.91 billion, lower than the $3.94 billion analyst estimate.
Netflix has been paying up big time for its content. Netflix said Monday that it expects content expenses to hit $8 billion this year. Analysts think the actual spend for content this year will be even higher, closer to $12 billion, although some of that may not be released until later.
Although Netflix fell short with subscribers, its shows remain critical hits. The company garnered 112 Emmy Awards nominations last week, more than any other television network.