Reddit (NYSE:RDDT) shares surged over 6% in pre-market trading today after the company delivered outstanding first-quarter results. The earnings and revenues significantly surpassed analyst expectations, driven by a robust increase in ad sales and strong user growth.

The company achieved adjusted earnings of $0.13 per share, far exceeding the $0.01 consensus estimate. Revenue totaled $392.4 million, marking a remarkable 61% year-over-year increase, outpacing forecasts of $369.3 million.

Advertising remains Reddit’s primary revenue source, generating $358.6 million in sales. The platform’s daily active user count soared 31% to 108.1 million, indicating strong user engagement with community-oriented content.

Reddit has successfully transitioned to profitability, reporting a net income of $26.2 million, a significant turnaround from a loss of $575.1 million during the same quarter last year.

Looking forward, Reddit anticipates second-quarter revenues between $410 million and $430 million, comfortably above Wall Street’s $392.9 million projection. Adjusted EBITDA is expected to fall between $110 million and $130 million, demonstrating ongoing confidence in its ad monetization strategy.