Net earnings for the last three months of 2014 came in at $1.35 a diluted share, which was 70% higher than one year ago during the same period.
Earnings for the entire year came in at $4.32 a diluted share, which was 135% higher than for the 2013 full year.
The stock increased over 18% in afterhours trading on Tuesday. At 2:00 p.m. ET the stock was trading at $409.48 or an increase of 21%.
Netflix revenues ended the quarter at $1.5 billion and for the year at $5.5 billion. Each of those was up approximately 25% for the same periods one year ago and in line with projections.
Analysts believe that for 2015, revenues as well as earnings could remain on the same path and even grow to the high 20s.
Netflix stock has lost close to 30% in value since last summer as investors worried about a possible slowdown in the U.S., international expansion losses and large expenses in original productions.
However, with the latest earnings report Netflix management has convinced investors that fears had been overblown and that there was a solid outlook.
Netflix will double down on its international investment and wants to raise over $1 billion to finance its roll out.
Netflix is planning to be in 200 countries within two years. It currently is serving 50 countries and management believes the international arm will be profitable by 2017.
The U.S. market is a great source of income generating two thirds of all revenues in Netflix and 100% of its profits. The international arm is expanding rapidly but has a smaller overall base.
The push globally will accelerate the growth in revenue, making cash readily available to develop then license new content.
The production of original content will be stepped up as it helps to attract new subscribers to the fold.