Netflix Inc

NFLX: XNAS (USA)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	$842.00	Czhzny	Gbxjkqvqmc

Netflix Earnings: Paid Sharing Boosts Subscriber Growth but Surprisingly Not ARPU

Neil Macker

Jul 20, 2023

Netflix posted a solid second quarter with net customer additions of 5.9 million, well ahead of our estimate. The firm benefited from the rollout of its password sharing crackdown—paid sharing—covering over 100 countries including the United States. Despite the subscriber beat and additional shared account fees, revenue was in line with our estimate due in part to foreign exchange headwinds as well as stagnant average revenue per user, or ARPU, in Netflix’s two largest regions.

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