Reddit's shares surged 15% on Friday after it reported quarterly results that exceeded Street expectations, boosting investor confidence in the platform's AI-based advertising tools and strong user engagement.

Reddit plans to expand its AI search tool globally, beyond its 12-country user base. Reddit stock climbed 15% Friday after it revealed its second-quarter results, with revenue up 78% year-over-year to about $500 million and EPS hitting $0.45, far surpassing Wall Street expectations.

Reddit’s AI-driven advertisements have helped the company draw in more business, pushing revenue up 78% to $499.6 million, said CFO Drew Vollero.