(Reuters) -Reddit ( RDDT ) forecast third-quarter revenue above Wall Street estimates on Thursday, betting on growing digital advertising driven by its artificial intelligence-powered marketing tools and sending its shares up 9% in extended trading.

The forecast follows bigger rival Meta's upbeat second-quarter results and strong revenue outlook on Wednesday, lifted by the Facebook and Instagram parent's core ad business.

Advertisers are increasingly turning to platforms such as Reddit ( RDDT ), Meta, and TikTok, which offer advanced AI-powered tools for automated ad creation, precise audience targeting and access to fast-growing user bases.

Reddit ( RDDT ) offers marketers various ad formats, including conversation placement ads, which allow brands to advertise directly within discussion threads in its interest-based communities known as subreddits.

The San Francisco, California-based company last month launched two new AI-powered ad features designed to help brands drive engagement by tapping into user conversations on the platform.

Reddit ( RDDT ) expects third-quarter revenue of $535 million to $545 million, well above analysts' average estimate of $473 million, according to data compiled by LSEG.

Second quarter revenue rose 78% to $500 million, beating estimates of $426 million.

Daily active unique visitors increased 21% to 110.4 million in the quarter ended June 30, while global average revenue per user jumped 47% to $4.53, the company said.