The Los Gatos, California, company earned $178 million on revenue of $2.6 billion in the first quarter.
Investors have permitted Netflix to operate near break-even on the expectation that the company, which expects to top 100 million customers this week, will continue to grow rapidly, especially outside the U.S. Chief Executive Officer Reed Hastings has also pledged to deliver material profits starting this year.
Over the past decade, "what really did it for Netflix was the explosion of phones and tablets that allowed people to watch video everywhere", said Wedbush Securities analyst Michael Pachter.
Netflix has released its earnings for the year with the company stating that it hit 98.75 million memberships at the end of 2016.
"The disclosure that Netflix is going to pass the 100mn subscriber count this weekend suggests it is trending ahead of schedule towards its sub guidance for 2Q17", wrote Mark May of Citi Research, who has a neutral rating.
In the period the platform added 5 million members, down from the 7 million added in Q4 2016.
If Netflix reaches 100 million subscribers this weekend, that means it's already added 1.25 million subscribers - or almost 40 percent - so far this quarter, well on its way to making its guidance of 3.2 million adds. But according to the first notes to clients Tuesday morning, analysts believes Netflix is being conservative, even with that better-than-expected forecast. HBO takes pride in having 134 million subscribers at the global level, covering viewers paying for an internet-only variant of the channel that was sparked by Netflix's success.
Although Netflix is far from a one trick pony, the move of House of Cards from Q1 to Q2 has impacted on operating margins, which rose to 9.7% in the first quarter.
Netflix's investment in original programming has inspired competing technology companies and TV networks up their spending, creating more competition for attention and eyeballs. Netflix's services extend from $8 to $12 a month, with the most economical option at $10.
Total revenues jumped to United States dollars 2.637 billion from 1.958 billion the year before and against the company's guidance of 2.5 billion. Netflix will spend more than $1 billion in marketing this year to drive customer acquisitions.