Netflix added over 50% more subscribers than expected in the third quarter as original shows such as "Stranger Things" drew new international viewers and kept US customers despite a price hike.
This sent its shares soaring 20% in late trade on Wall Street last night.
The company's performance represented a turnaround from the previous quarter of disappointing subscription growth.
Netflix, which has spent heavily to expand outside its home market, also said that it was on track to start harvesting "material global profits" next year, even as it raised spending on original programming.
Netflix added about 3.20 million subscribers internationally in the third quarter, higher than the 2.01 million average analyst estimate.
In the USs, Netflix added 370,000 subscriptions, compared with analysts' estimate of 309,000, according to research firm FactSet StreetAccount.
Netflix has expanded into more than 130 markets worldwide, including most major countries, except China.
It said last night it was dropping plans to launch a service in China in the near term, opting instead to license its shows for "modest" revenue.
The company said it still hopes to launch service in China "eventually."
In the meantime, Netflix plans to keep pouring money into building its stable of original and licensed TV shows and movies. Content spending will rise to $6 billion next year, a $1 billion increase from 2016, the company said.
"We will keep investing in growing the content spend, even domestically, for quite a long time," the company's chief executive Reed Hastings said.
Netflix has been facing a slowdown in subscription growth in the US as the market matures and a planned US price hike raised concerns it would not hit its targets.
It also faces competition from the likes of Hulu and Amazon.com.
But the company, whose other popular original shows include "Orange is the New Black" and "House of Cards", said it expects to add 1.45 million subscribers in the US in the current quarter. Analysts on average were expecting 1.27 million additions, according to research firm FactSet StreetAccount.
In its international markets, it expects subscriber additions of 3.75 million, compared with the average analyst estimate of 3.32 million.
The company said its third-quarter revenue rose 31.7% to $2.29 billion.
Netflix's shares have surged in the past few years, driven by rapid growth as the company redefined television and fueled "binge watching".
The stock, however, was down 12.7% so far this year as investors fretted about slowing growth in its domestic market and increasing competition.
