Reddit's stock surged 6.24% in after-hours trading on Thursday, following the release of its first-quarter financial results that significantly exceeded analyst expectations.

The social media platform reported earnings of $1.01 per share, beating the consensus estimate of approximately $0.58. Revenue for the quarter climbed 69% year-over-year to $663 million, surpassing the expected $610.9 million. The company's net income saw a dramatic 680% increase to $204 million. Daily active unique users grew 17% to 126.8 million, indicating robust user engagement.

Investor sentiment was further bolstered by Reddit's strong second-quarter outlook. The company forecast revenue between $715 million and $725 million, above the $711.6 million analyst estimate. Management attributed the strong performance to its AI-powered advertising tools, which are fueling significant growth in its advertiser base and helping it compete effectively for digital ad dollars in a crowded market.