Shares of Reddit (RDDT) are rising Wednesday after the social media company posted its first quarterly profit as a public company with better-than-estimated results and a rosy fourth-quarter outlook.

Reddit, which went public on the New York Stock Exchange (NYSE) in March, posted third-quarter revenue of $348.4 million, up 68% from a year ago and surpassing $312.2 million which was expected by analysts polled by Visible Alpha. It reported third-quarter net income of $29.9 million, or 16 cents per share, versus estimates of a net loss of $17.7 million, or 10 cents per share.

For the fourth quarter, Reddit expects revenue between $385 million and $400 million and adjusted EBITDA of $110 million to $125 million.

The news caused the stock to rise more than 40% in recent trading. Shares have more than doubled since they began trading and are well above their IPO price of $34 at around $115.

“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 notes revenue increase due to advertising growth

Citigroup analysts, who have a buy rating on the stock, noted that advertising revenue growth of 56% was behind the higher-than-estimated revenue increase.

“Ad revenue was driven by higher-growth user impression growth, ad load efficiency and the expansion of conversation placement ads,” Citi said.

JPMorgan analysts raised their price target on the stock from $77 to $110, although they maintained a ‘neutral’ rating.

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