Why it matters: It's impressive to see Netflix's growth from a DVD-by-mail outlet to the industry's leading video streaming outfit, complete with compelling original content production. And to think, it all nearly fell apart with Quickster.

Netflix shares shot up more than 12 percent in after-hours trading on Tuesday following the release of its favorable third-quarter earnings report.

Subscriber growth is paramount and in this category, Netflix didn't disappoint. Analysts predicted growth of 5.07 million users but Netflix managed to attract 6.96 million net additions. In total, Netflix now enjoys north of 137 million subscribers, 130 million of which are paying members.

As for earnings, Netflix generated $4 billion compared to the $3 billion it took in a year earlier. Diluted earnings per share checked in a $0.89 per share versus $0.29 per share during the same time in 2017.

The future is looking even brighter for Netflix as the video streaming outfit forecast paid net additions of 7.6 million and total net additions of 9.4 million, up 15 percent and 13 percent compared to the 6.6 million and 8.3 million from the year-ago quarter. Q4 is usually the most lucrative time for Netflix in terms of growth and revenue and there's no reason to see why this year will be any different.