What happened

Shares of The Rubicon Project (NASDAQ:MGNI) soared on Thursday after the advertising exchange provider reported its second-quarter results. Rubicon easily beat analyst estimates for both revenue and earnings, sending the stock up 30.8% by 1 p.m. EDT.

So what

Rubicon reported second-quarter revenue of $37.9 million, up 32% year over year and about $2.8 million above the average analyst estimate. Mobile revenue was up 42% and accounted for 56% of total revenue, while desktop revenue jumped 21%. The company's video revenue grew at twice the industry growth rate, while audio revenue came close to doubling on a year-over-year basis.

A rising chart.

Image source: Getty Images.

Non-GAAP (adjusted) earnings per share came in at a loss of $0.06, up from a loss of $0.27 in the prior-year period and $0.08 higher than analysts were expecting. Adjusted earnings before interest, taxes, depreciation, and amortization were $4.4 million, up from a loss of $5.5 million in the prior-year period.

Now what

"Our strong performance was based on continued market share growth in audio and video, new customer additions, and continued success as our customers consolidate supply sources. We are outperforming our target 20% long term revenue growth rate, which is enabling us to invest in areas like Demand Manager [ad bidding technology for publishers] and video that will drive growth in future years," said Rubicon CEO Michael Barrett in prepared remakes included in the earnings release.

With Rubicon stock still far below its all-time high, a solid quarter was enough to send the stock rocketing higher.

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