Netflix on Monday reported first quarter sales that fell short of analysts' estimates. The company also said it will gradually roll out higher prices throughout 2016, leading to a second-quarter forecast that also misses Wall Street expectations.
The company's shares plunged as much as 12 percent after the stock market closed, after falling to $108.40 during trading hours.
Netflix reported $1.81 billion in revenue for the first quarter; analysts had estimated $1.97 billion. The company also forecast $1.96 billion in sales for the current period, compared with estimates of $2.12 billion.
In January, Netflix said it had expanded into 130 additional countries, giving it a near-global reach. "In most of these markets, so far, Netflix is offered only in English and payment methods are limited primarily to international credit cards," the company said in a letter to shareholders. It plans to add more local languages, content and payment options in the coming quarters.
Netflix also said, as planned, it will phase out the $7.99 pricing that more than half of its US customers now pay per month, "with our longest-tenured members getting the longest benefits."
Discuss: Netflix didn't get the sales boost it hoped for
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