Shares of Reddit popped greater than 40% on Wednesday, in the future after the social media firm posted a shock revenue in its third-quarter results and provided rosy steerage.

Reddit’s income in the course of the third quarter jumped 68% from a yr earlier to $348.4 million, up from the $312.8 million anticipated by analysts polled by LSEG.

The corporate reported a web revenue of $29.9 million, or 16 cents per share, in contrast with a web lack of $7.4 million, or a 13-cent loss per share, throughout the identical quarter a yr in the past. LSEG analysts have been anticipating a lack of 7 cents per share in Reddit’s third quarter.

Reddit stated fourth-quarter income might be between $385 million and $400 million, above the common analyst estimate of $357.9 million. 

“It was one other robust quarter for Reddit and our communities as we achieved essential milestones, together with new ranges of person site visitors, income development, and profitability,” Reddit CEO Steve Huffman stated in a press launch.

Reddit’s each day lively distinctive customers elevated 47% yr over yr to 97.2 million throughout its third quarter, and analysts at Citi stated Wednesday that this person development underscored the corporate’s “spectacular” outcomes. The analysts reiterated their purchase score and raised their goal value on the inventory to $120 from $70.

Analysts at JP Morgan stated they consider the corporate is benefiting from structural enhancements because it executes throughout customers, product and monetization. They stated they’re inspired by Reddit’s robust income development, improved profitability and rising each day lively distinctive customers.

“We search for continued execution throughout advertiser scale, new advert codecs/tech (Search, Dialog Adverts, Purchasing Adverts), & progress towards [management’s] 40% L-T Adj. EBITDA margin goal,” the analysts wrote in a Wednesday observe.

Bernstein analysts acquired into the Halloween spirit Wednesday and in contrast Reddit’s efficiency within the third quarter to a “actual Dr. Jekyll and Mr. Hyde story.” The analysts stated the corporate felt prefer it was caught and unable to develop previous to its IPO, however post-IPO, the corporate is blowing previous expectations.

“Reddit seems like an organization that is out of the blue an AI winner, rising advert revenues at an unprecedented clip, has a person development cheat-code in translation + Google, and hitting years-long profitability targets in months — this Dr. Jekyll,” the analysts stated in a observe. “And proper now, Dr. Jekyll is in cost.”

— CNBC’s Michael Bloom and Jonathan Vanian contributed to this report.