Netflix announced its Q3 2015 earnings this afternoon, and despite predictions from market analysts, earnings and subscriber number predictions missed the mark.
Earnings per share came in at $.07 on revenue of $1.74 billion, which caused Netflix shares to fall 14% upon release of the news.
Netflix said in its earnings report that it ran into problems with “involuntary churn (inability to collect)” which the company is pinning on a transition to chip-based credit cards.
Analysts, and Netflix’s own projections, expected to add 1.25 million subscribers in the U.S. in Q3, however, they added 880,000 subscribers. Netflix had big gains internationally, however: 2.74 million subscribers were added internationally, exceeding expectations of 2.45 million.
Worldwide subscriptions are up to 69.17 million subscribers. Netflix expects to end 2015 with more than 74 million subscribers.