The world-renowned streaming firm managed to add as many as 8.8 million members in the last three months of the year, taking its overall subscriber base to almost 140 million globally.
Netflix intends to increase its investment in original shows and movies over the coming months, saying: "Our multi-year plan is to keep significantly growing our content while increasing our revenue faster to expand our operating margins. Our growth is based on how good our experience is."
The company's growth was, in part, driven by the popularity of the movie 'Bird Box', which was watched by 80 million households in the first four weeks after it was released.
Similarly, 'Elite' - the Spanish drama - was watched by 20 million households in the first four weeks after it was released.
Despite its success, George Salmon, analyst at Hargreaves Lansdown, warned that Netflix still faces intense competition.
He said: "The worry, of course, is that international bruisers like Disney and Amazon aren't going to go down without a fight, and both have the financial clout to counter-punch pretty hard.
"The battle for viewers' eyeballs is only just getting started."