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- Netflix reported its second-quarter earnings on Thursday.
- New subscriber numbers surpassed analysts’ expectations at just over 8 million.
- The streaming service has been luring more viewers by cracking down on password sharing.
Netflix‘s subscriber numbers grew more than expected during its second quarter, the latest sign that the company’s password crackdown is working.
The streamer attracted 8.05 million new subscribers for the quarter, helped by shows including the third series of “Bridgerton” and “Baby Reindeer.” Analysts surveyed by Bloomberg had expected 4.9 million new subscribers.
Revenue grew 17% to $9.56 billion, the company said. Still, shares dropped more than 4% in aftermarket trading, and Netflix said Q3 subscriber growth will be lower than the same period last year.
Netflix’s subscriber growth has blown past expectations in recent quarters. In April, the company reported 9.33 million new users for its first quarter, roughly double what analysts expected.
The streaming service has cracked down on customers sharing passwords — a move that has been successful for the company as many viewers who used to use someone else’s credentials start paying for their own.
Netflix has said it will stop reporting subscriber counts in 2025, leaving investors to focus on more traditional metrics like revenue and profit.
The company also confirmed to multiple news outlets that Peter Naylor, its vice president of ad sales, will leave the company. Naylor is one of two executives — both of whom have now left the company — who joined Netflix from Snap in 2022 to build its advertising business, Variety reported.
Disclosure: Mathias Döpfner, CEO of Business Insider’s parent company, Axel Springer, is a Netflix board member.
