If you’re interested in online media investing, you’re going to get a kick out of today’s news. On Wednesday, Phoenix New Media Limited (NYSE:$FENG) shares soared after reporting strong second-quarter results. It’s not a surprise the stock finished the day up 37.6%, as the Chinese media company surpassed analyst estimates across the board, and its Q3 revenue guidance was higher than expected.

The Second-Quarter Report

Phoenix New Media posted second-quarter revenue of $58 million, which is up 12.3% year over year and roughly $1.5 million above the average analyst estimate. Net advertising revenue increased 14% year over year to $50 million. Many speculate this increase was driven by a 66% surge in mobile advertising revenue. Additionally, non-GAAP earnings per share came in at $0.06, which is $0.09 higher than analyst expectations.

What Does the Future Hold?

For Q3, Phoenix New Media forecasts revenue to come in between the range of $59.3 million and $61.6 million, which surpasses the average analyst estimate of $59 million.

Here’s the company’s growth strategy in a nutshell: 1) expand its user base, 2) market share by investing in traffic acquisition, 3) use AI and differentiated content offerings to go after a variety of growth opportunities.

Even though the stock price grew by over a third on Wednesday, Phoenix shares remain 74% below their all-time high.

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