Gaxos.ai Inc. (NASDAQ:GXAI) stock jumped more than 45% Thursday, extending a sharp rally that began after the company reported better-than-expected second-quarter results.

The stock surged 66.57% in after-hours trading Wednesday following the earnings release.

Q2 Earnings Beat

Gaxos.ai reported earnings of 2 cents per share, beating the consensus estimate for a loss of 15 cents. Revenue of $2.46 million also topped the Street estimate of $1.75 million.

Revenue increased 35.8% sequentially, while advertising and marketing spending rose 13.5%.

Revenue generated per advertising dollar improved 20% to 78 cents from 65 cents in the first quarter. Advertising and marketing costs fell to 128% of revenue from 153%, a 16.4% improvement.

Total spending increased to $3.14 million from $2.77 million in the first quarter.

Gaxos.ai ended the quarter with about $11.44 million in cash and short-term investments as of June 30.

CEO Vadim Mats said the results reflected “the scalability of our operating platforms” and the company’s disciplined approach to growth and capital allocation.

Read Also: Gaxos Stock Pops On New AI Features Driving User Engagement

What Gaxos.ai Does

Gaxos.ai develops artificial intelligence-powered products across several markets. Its portfolio includes technology aimed at areas such as defense, health, entertainment and productivity.

The company’s second-quarter results showed improving advertising efficiency alongside sequential revenue growth as it continues to develop and expand its AI platforms.

GXAI Stock Price Action

GXAI Price Action: Gaxos.AI shares were up 45.32% at $1.26 at the time of publication on Thursday, according to Benzinga Pro data.

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