Shares of Reddit (RDDT) are surging on Wednesday after the social media company reported its first quarterly profit as a publicly traded company with results that beat estimates and a rosy outlook for the fourth quarter.

Reddit, which listed on the New York Stock Exchange (NYSE) in March, reported third-quarter revenue of $348.4 million, up 68% from a year ago and beating expectations of analysts surveyed by Visible Alpha of $312.2 million. The company reported third-quarter net income of $29.9 million, or 16 cents per share, compared to estimates for a net loss of $17.7 million, or 10 cents per share.

For the fourth quarter, Reddit forecasts revenue in the range of $385 million to $400 million and adjusted EBITDA of $110 million to $125 million.

The news sent the stock up more than 40% in recent trading. The shares have more than doubled since trading began and, at prices near $115, are well above their IPO price of $34.

“It was another strong quarter for Reddit and our communities as we achieved key milestones including new levels of user traffic, revenue growth and profitability,” said Chief Executive Officer (CEO) Steve Huffman.

Citi sees revenue increase due to ad growth

Analysts at Citigroup, who rate the stock a “buy,” noted that 56% growth in advertising revenue was responsible for the above-estimates revenue increase.

“Ad revenue was driven by impression growth from high-growth users, more efficient ad load and expansion of conversation placement ads,” Citi said.

JPMorgan analysts increased their price target on the stock to $110 from $77, but maintained a Neutral rating.

UPDATE: This article has been updated since it was first published to reflect more recent stock price information.