Shares of space company Planet Labs soared. The company reported results that were significantly better than expected.

Shares of mid-cap satellite data provider Planet Labs surged more than 11% in premarket trading on September 4. The company reported quarterly revenue that significantly exceeded both its own expectations and Wall Street’s consensus estimates. Even Planet Labs’ weak outlook for the current quarter did not dampen investor sentiment.

Planet Labs shares rose more than 11% in premarket trading on September 4, to $20.4 (as of 5:05 a.m. in New York, 2:05 p.m. in Astana).

The company reported that, for the second quarter, its revenue surged 58% year-over-year to a record $116 million. This is 11% higher than Wall Street’s consensus estimate, according to data cited by Barron’s. The actual result also exceeded the company’s own forecast, which had been in the range of $102 million to $107 million.

The defense segment was the main driver: Planet Labs’ revenue from this business line nearly doubled during the quarter, reaching $81 million, according to Barron’s. Conflicts in the Middle East and Ukraine have demonstrated an urgent need for situational awareness, and an increasing number of industries are recognizing the value of space-based solutions, as The Motley Fool previously noted.

Strong revenue performance led to significant operating leverage, which, among other things, drove EBITDA growth in the reporting period by nearly 2.2 times, to $13.9 million, according to Planet Labs CFO Ashley Johnson (her comments are quoted in the press release). This figure exceeded Wall Street expectations by 504%, according to Barron’s.

“There couldn’t be a better earnings report,” the StockTwits platform quotes one of its users, a trader going by the handle AquaLung21, as saying. He believes that “[Planet Labs’] journey is just beginning.” Another trader called the results “well above expectations.”

According to a StockTwits article, even the weak forecast for the third quarter did not affect their sentiment. According to the forecast, Planet Labs expects revenue in the range of $101 million to $105 million and a negative EBITDA of between minus $6 million and $1 million.

Both figures are below the current Wall Street consensus: analysts expect revenue for this period to be $114 million and positive EBITDA of $2.5 million, according to Barron’s. The publication notes that while the current results look solid, the forecasts may give investors pause.

It also notes that investors should expect volatility in Planet Labs shares on September 4. This has consistently been the case following earnings releases: on average, the stock price has fluctuated by 34%—either up or down—after the last four quarterly reports, according to the article.

Since the beginning of the year, the company's stock price has fallen by nearly 7%.

Wall Street views Planet Labs’ outlook positively: seven analysts recommend buying the stock, while three others recommend holding it. The average price target is $41.8, which implies growth potential of nearly 128% relative to the last closing price.