Reddit RDDT-N forecast quarterly revenue above market estimates on Tuesday in its first earnings as a public company, riding on strong user growth and an uptick in the advertising market.

Shares of the social media platform were up 17 per cent in extended trading.

The company said it expects second-quarter revenue to be between $240 million and $255 million, compared with analysts’ average estimate of $223.8 million, according to LSEG data.

The results follow strong earnings from rivals including Snap and fan optimism that marketers are ramping up spending this year, after an ad market slump in 2023 caused by sticky inflation and an uncertain economic outlook.

Reddit is also trying to diversify revenue by licensing its user-generated content for the training of data-hungry AI models. It signed a deal with Google earlier this year that is worth about $60 million annually.