Netflix, Inc.(NASDAQ: NFLX)  has reported the adjusted earnings per share of 40 cents in the first quarter of FY 17, beating the analysts’ estimates for the adjusted earnings per share of 37 cents. The company had reported the adjusted revenue growth of 34.7 percent to $2.64 billion in the first quarter of FY 17, which is in line with the analysts’ estimates for revenue of $2.64 billion. However, Netflix has added fewer subscribers than expected, and earnings guidance for the second quarter was much lower than expected. Therefore the stock price fall after the announcement of the result.

Netflix total number of subscribers grew by 21.2 percent to 98.75 million compared to the analysts’ expectation for the additions of subscribers to be 98.93 million. Of the 4.95 million memberships that NFLX added in the first quarter, 1.42 million came from the U.S. and 3.53 million came from overseas. Both of them are below the analysts’ expectation as from domestic 1.56 million memberships was expected and from the international, 3.71 million members were expected to be added. Therefore the disproportionate balance is in the favor of overseas growth, the domestic growth has been slowing for years now, and the first quarter of 2016 marked the beginning of its focused push to become truly global.

Meanwhile, Netflix expects to cross the 100-million-subscriber mark in the second quarter, adding 3.2 million subscribers globally. The company expects the revenue of $2.755 billion, in-line with analysts’ $2.76 billion expectations, and the earnings per share of 15 cents, below the consensus estimate of 24 cents per share by the analysts.

Additionally, The company’s had $423 million negative free cash flow during the first quarter, bigger than the $261 million negative free cash flow a year ago. NFLX expects to have $2 billion in negative free cash flow this year, but most analysts think it will be 2018 or 2019 before NFLX can even think about becoming cash flow positive. Further, Netflix is spending over $1 billion in 2017 on marketing, and streaming content obligations have swollen to $15.3 billion, up from $12.3 billion a year ago.

In addition, Netflix is facing stiff competition. HBO Go, Amazon Video, Hulu, and Alphabet’s YouTube are four of the most prominent competitors. Facebook Video is growing rapidly in popularity. Sling by Dish gives the option of skinny bundles, starting at $20 a month for more than 30 channels. Networks like CBS and the BBC are embracing direct-to-consumer streaming as well, and Comcast Corp. is planning a service to rival the likes of NFLX in 2018.

Netflix stock has risen 32.05% in the last one year (source: Google Finance).