- Netflix reported third-quarter earnings on Thursday.
- New subscriber numbers beat analysts’ expectations at 5.07 million.
- The streaming service is trying to grow new sources of revenue, such as gaming and advertising.
Netflix’s subscriber base grew more than expected during its third quarter, showing that its effort to cut down on password-sharing is still yielding new sign-ups.
New subscribers to the streaming service totaled 5.07 million, the company said Thursday. Analysts surveyed by Bloomberg were expecting 4.5 million; Netflix gained 8.76 million paying viewers in the same period a year earlier.
Quarterly revenue of $9.83 billion also came in slightly above Bloomberg’s estimate of $9.78 billion.
Shares rose more than 4% in after-hours trading.
Netflix’s subscriber growth has far surpassed analysts’ expectations over the company’s previous few quarters. It has clamped down on viewers sharing login credentials, a move that has generated new subscriptions. It plans to stop disclosing quarterly subscriber counts in 2025.
Going into Thursday’s earnings report, analysts who follow Netflix said that they expected the boost from the password-sharing crackdown to diminish in the future. Instead, they said, the company could grow revenue by expanding its ad and gaming businesses or increasing the subscription cost.
Disclosure: Mathias Döpfner, CEO of Business Insider’s parent company, Axel Springer, is a Netflix board member.
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