Roku, the digital streaming company that went public in September, reported its first quarterly earnings report, which beat Wall Street analyst expectation on sales as well as earnings, sending its stock surging by more than 20%.

The earnings report came out after the market close, and the stock surge happened during after-hours trading, but there is real good chance for Roku’s stock price to keep its after hours gains because the company nearly fired on all cylinders.

Roku reported $124.8 million in net revenue during the quarter, a growth of 40% compared to last year. Wall Street was expecting net revenue of just $110.5 million during the quarter. The company now expects to make $500 million in revenue during 2017, a full $100 million more than what they made in 2016.

Next year, if the company performs at the top end of its projections, the company said it could break even next quarter, before interest, taxes, depreciation and amortization.

For the third quarter, active accounts shot up 48% on a year-over-year basis to hit 16.7 million, while streaming hours jumped 58% to 3.8 billion hours. Average revenue per user, or ARPU, grew to $12.68, a 37% growth rate.

Roku went public in late September this year in a $252 million IPO. The media streaming technology company has built the business on its streaming hardware, and is growing at a rapid rate in line with companies like Netflix, which are all supporting cord cutters to shift from traditional cable and satellite services. Roku’s hardware is in direct competition with companies like Amazon (Fire TV), Apple TV and Google Chromecast, among other brands in the market.

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Source: Roku Investor Relations