The slower start to the year means it is still on track to add just over 18m subscribers this year, the worst performance since 2016.
However, investors appeared cheered by the latest figures, with shares rising almost 4pc in after-hours trading.
It was not just Squid Game which drew subscribers in the latest quarter, and new series of hit shows Sex Education and La Casa de Papel also helped attract audiences back to the streaming site.
Netflix said it would be changing how it recorded how people were viewing its shows, and would instead start reporting hours viewed rather than the total number of accounts which watched a show.
It said this “matches how outside services measure TV viewing and gives proper credit to rewatching”.
The streaming site revealed that the recent outage at Facebook earlier this month prompted a 14pc spike in engagement.
“We compete with a staggeringly large set of activities for consumers’ time and attention like watching linear TV, reading a book, browsing TikTok, or playing Fortnite, to name just a few.”