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What's Happening: Shares of enterprise software company TubeMogul (NASDAQ:TUBE) surged on Tuesday after the company reported its second-quarter results, handily beating analyst estimates for both revenue and earnings. Revenue came in at $45.4 million, up 58% year-over-year and about $6 million higher than analysts were expecting, while a net loss of $0.04 per share was $0.13 better than the average analyst estimate. At 11 a.m. Tuesday morning, the stock was up about 25%. It had dropped about 14% on Monday, thanks partly to an analyst downgrade.

Why It's Happening: In addition to growing revenue faster than expected, total spend on TubeMogul's platform rose 72% year-over-year to $105 million. CEO Brett Wilson had this to say about the company's quarter: "Our strong Q2 results were driven by our unwavering focus on brand advertisers and the tools they need to transform their media planning, buying and measurement. Revenue from our expansion into Programmatic TV contributed to our outperformance in Q2 and we are excited to begin offering brand advertisers cross-screen planning and buying, with TV as the centerpiece of this effort."

TubeMogul did swing to a loss during the second quarter, compared to a small net profit during the second quarter of 2014. This was driven by higher spending, with research and development costs rising by 92% year-over-year, sales and marketing costs jumping 63%, and general and administrative costs increasing by 83%.

Going forward, TubeMogul expects revenue between $39 million and $41 million during the third quarter, representing 48% year-over-year growth at the midpoint of that range. For the full year, revenue is expected between $164 million and $170 million, up 46.5% at the midpoint from 2014. Both of these ranges are well above average analyst estimates of $36.6 million and $154 million, respectively.

While TubeMogul lost money on higher spending during the second quarter, rapid revenue growth and better-than-expected guidance was more than enough to send the stock soaring.

Timothy Green has no position in any stocks mentioned. The Motley Fool recommends TubeMogul. The Motley Fool owns shares of TubeMogul. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.