Video-streaming service provider Netflix reported U.S. subscriber additions below its own forecast, which the company attributed to the ongoing transition to chip-based credit and debit cards.
Shares of Netflix, known for its original shows such as “House of Cards” and “Orange is the New Black”, plunged about 15% to $93.55 after the bell.
The company said on Wednesday it added 0.88 million U.S. subscribers in the third quarter ended Sept. 30, compared with its forecast of 1.15 million.
“Our over-forecast in the US for Q3 was due to slightly higher-than-expected involuntary churn (inability to collect), which we believe was driven in part by the ongoing transition to chip-based credit and debit cards,” the company said.
Internationally, Netflix added 2.74 million subscribers, compared with its projection of 2.40 million.
Netflix has been aggressively building its overseas presence as its key U.S. market matures.
The company said revenue rose to $1.74 billion from $1.64 billion a year earlier.
Netflix forecast adding about 1.65 million customers in the United States in the current quarter. It also said it expected to add about 3.50 million subscribers worldwide.