Netflix will stop reporting quarterly subscriber numbers starting with its first quarter 2025 earnings, as the company says its more focused on other metrics.

Additionally, the streaming giant said Thursday that it would stop reporting average revenue per member, which it refers to as ARM. The company had already stopped providing guidance on paid membership numbers starting in 2023.

In the companys earnings report, Netflix said the decision came amid rising profit numbers. As weve noted in previous letters, were focused on revenue and operating margin as our primary financial metrics and engagement (i.e. time spent) as our best proxy for customer satisfaction. In our early days, when we had little revenue or profit, membership growth was a strong indicator of our future potential. But now were generating very substantial profit and free cash flow (FCF), the earnings release reads.

In our early days, when we had little revenue or profit, membership growth was a strong indicator of our future potential. But now were generating very substantial profit and free cash flow (FCF). We are also developing new revenue streams like advertising and our extra member feature, so memberships are just one component of our growth. In addition, as weve evolved our pricing and plans from a single to multiple tiers with different price points depending on the country, each incremental paid membership has a very different business impact.

More to come.