(Reuters) -Reddit forecast second-quarter revenue above Wall Street estimates on Thursday, betting on growing digital advertising spend on the social media platform despite uncertainty over marketing budgets, sending its shares up 19% in extended trading.

The company is benefiting from its conversation placement ads format, where brands can advertise directly within discussion threads taking place in its interest-based communities known as subreddits.

Reddit’s results suggest that its ad tech investments are paying off and the company is attracting advertisers at a time when the ending of a duty-free import loophole, combined with deepening trade tensions, has constrained ad budgets for some social media platforms.

Facebook-parent Meta topped revenue expectations on strong ad sales on Wednesday. In contrast, smaller rival Snap said that it would not issue a quarterly forecast due to economic uncertainty, as advertisers favor bigger platforms in tough times.

The company expect current-quarter revenue to be between $410 million and $430 million, compared with the analysts’ average estimate of $395.5 million, according to data compiled by LSEG.

Reddit jostles with rival social media platforms, including TikTok, Facebook and Instagram, for digital ads, as these platforms have become a reliable go-to for marketers because of their massive user base.

It expects adjusted earnings before interest, taxes, depreciation, and amortization of $110 million to $130 million in the second quarter, beating estimates of $105.3 million.

Revenue for the quarter ended March 31 grew 61% to $392.4 million, beating estimates of $370 million.

Daily active unique visitors rose 31% to 108.1 million during the quarter, compared with estimates of 107.5 million.

(Reporting by Jaspreet Singh in Bengaluru; Editing by Mohammed Safi Shamsi)