Shares of Reddit (RDDT) surged 17.66% in after-hours trading on Thursday following the release of the company's stellar second-quarter earnings report and optimistic third-quarter guidance. The social media platform significantly outperformed Wall Street's expectations, demonstrating robust growth in both financial performance and user engagement.

For the second quarter, Reddit reported adjusted earnings of $0.45 per share, more than doubling the analysts' consensus estimate of $0.19. Revenue soared to $500 million, marking a 78% increase year-over-year and beating the expected $426 million. The company's impressive performance was largely driven by its thriving advertising business, with ad revenue jumping 84% to $465 million compared to the same period last year.

Adding to the optimism, Reddit provided a strong outlook for the third quarter, forecasting revenue between $535 million and $545 million, well above Wall Street's estimate of $473 million. The company's user base also showed healthy growth, with daily active unique visitors increasing by 21% to 110.4 million. Reddit CEO Steve Huffman emphasized the platform's unique value proposition, stating, "In a world where connection is increasingly rare, our communities show how valuable human conversation and knowledge really are." The company's focus on AI-driven ad tools and its ability to offer marketers access to engaged, interest-based communities appear to be paying off, contributing to its strong financial results and positive market reaction.