Reddit reported its second-quarter results after Thursday's closing bell, and the numbers looked good on paper. Earnings of $1.25 per share crushed the consensus estimate of $0.95, while revenue of $804.91 million easily topped the $730.26 million analysts were looking for. Revenue was up 61% from $499.6 million a year ago.

But the market wasn't impressed. Shares of Reddit (RDDT) dropped about 5% in after-hours trading to $168.97. Sometimes a beat isn't enough when expectations are sky-high.

Here are the key metrics from the quarter:

• Daily Active Uniques (DAUq) rose 18% year-over-year to 130.3 million
• Weekly Active Uniques (WAUq) jumped 24% to 514.6 million, crossing the half-billion mark
• Gross margin improved to 91.3% from 90.8%
• Adjusted EBITDA hit $343 million, or 43% of revenue, up 106% year-over-year
• Operating cash flow was $262 million, or 33% of revenue, up 135%

CEO Steve Huffman struck an optimistic tone. "In an increasingly automated web, the value of real human perspective has never been higher. Reddit’s commercial momentum reflects that," he said. "Crossing $1 million in revenue per employee and maintaining eight consecutive quarters of over 60% revenue growth shows the strength of our community model and the value we deliver to advertisers."

So why the sell-off? It could be that investors were hoping for an even bigger beat, or perhaps they're worried about the sustainability of growth. Either way, Reddit's fundamentals look strong, and the company continues to monetize its user base effectively.