The bottom line fared even better. Rising margins sent the operating margin and earnings per share soaring 52% and 45%, respectively. It was a sound beat on both ends of the income statement. Netflix was initially forecasting a 14% increase in revenue and a 33% jump in net income.

Netflix's cheapest plan without commercials costs $15.49 a month. Some analysts have previously suggested Netflix should raise prices on its ad-free options to nudge customers towards the tier with commercials as it usually brings in more revenue per user.

Netflix stock closed at a new record Tuesday afternoon, after the company announced that its advertisement-supported subscription tier has hit 70 million global monthly active users. Netflix said on Tuesday that “over 50% of new Netflix sign-ups are for the ads plan in ad-supported countries.