Reddit (NYSE:RDDT) shares rallied 17% on Friday after the social media platform reported second-quarter results that topped forecasts and issued a strong revenue outlook for the third quarter.

The company posted earnings of $0.45 per share, crushing analyst expectations of $0.19. Revenue soared 78% year-over-year to $500 million, well ahead of the $426 million forecast.

Advertising remained Reddit’s primary revenue driver, increasing 84% to $465 million and accounting for over 93% of total sales. Revenue from data licensing and other streams rose 24% to $35 million, supported by AI-training partnerships.

Daily Active Uniques (DAUq) reached 110.4 million, up 21% year-over-year and slightly above the prior quarter’s 108.1 million. Gross margin expanded to 90.8%, while adjusted EBITDA climbed to $167 million, with margin rising to 33% from 14%.

“Reddit is built for this moment,” said CEO Steve Huffman, emphasizing a focus on global scaling, sustainability, and platform trust.

Reddit projected third-quarter revenue between $535 million and $545 million, well above the $473.1 million consensus, lifting investor sentiment.