Shares of Netflix (NFLX) are soaring in late trading after the company rebounded from a series of embarrassing blunders last year and posted fourth-quarter results that were better than expected. 

Profit at the Los Gatos, Calif., company fell 13% to $40.7 million, or 73 cents a share, from $47.1 million, or 87 cents a year earlier. Revenue rose 47% to $875.6 million as the company was able to quell a customer revolt over an unpopular fee hike. Analysts expected profit of 55 cents on revenue of $857.89 million.

One great quarter won't earn Wall Street's forgiveness, but it sure is a good start. Among the good news in the quarter were stronger-than-expect​ed increases in Netflix's video-streaming business. As of the end of the quarter, that business had 21.67 million customers, an increase of 220,000 from the third quarter.

Even the DVD rental business, which is fading, performed well.

Netflix shares rose nearly 14% in after-hours trading to $108.10.

The company said it saw fewer streaming cancellations, as well as a lower migration to DVD-only plans. "While DVD members declined sharply over the last two quarters, the weekly rate of DVD cancellations has subsided from peak levels in September," Netflix said in a statement.

CEO Reed Hastings still faces huge obstacles to future growth, including rising costs for content -- particularly as the company pushes into developing original and exclusive programs.

Rivals have seized upon miscues last year that caused 800,000 customers to quit the service Hastings founded in reaction to his poor treatment by Blockbuster. If he can rebound from his blunders, Hastings' strategy will be studied in business schools for generations to come.