GoPro Inc (NASDAQ:GPRO) shares have rallied more than 24% since the company reported strong third-quarter results last Thursday. The action camera maker also forecast solid sales for the current quarter. Over the past few days, analysts have been scrambling to upgrade their ratings on the stock and raise their estimates.

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GoPro videos received 72 million views on YouTube in Q3

GoPro earned 12 cents a share on revenue of $280 million in the latest quarter. Analysts polled by Thomson Reuters were expecting $266 million in revenue and 8 cents in EPS. For the current quarter, the company guided sales of $550 million to $580 million and EPS of 65-69 cents, well above the consensus projection of 55 cents in EPS and $505 million in sales. GoPro said at the earnings call that its newly launched Hero 4 is selling like hot cakes.

GoPro users upload and share their adventurous videos on social networking sites and video platforms such as YouTube and Vimeo. The company plans to start monetizing its content through licensing. JPMorgan analysts say GoPro might allow ads on its YouTube channel and provide video editing services to create additional revenue streams.

[drizzle]Raymond James analyst Tavis McCourt said in a research note that the company’s YouTube channel monthly view soared 99% YoY to 72 million during the September quarter. Total minutes watched also skyrocketed 133% YoY. Content submission increased 160% from September to October. GoPro’s Xbox channel also received 6.5 million views during July-September period.

At present, only a small percentage of GoPro content gets shared

Though there is a lot of GoPro content on YouTube, the company says only a “single-digit percentage” of them get shared. However, it may change in coming years. The company believes it will be able to let users license their videos, just like YouTube does. About 90% of those who submit content to YouTube grant the video sharing platform the right to monetize their content.

During the third-quarter, GoPro updated its desktop application GoPro Studio and its mobile app GoPro App, including Flux and HiLight Tag. With new apps and strong growth in GoPro content published and viewed, GoPro has a significant monetization potential. According to FBN Securities, the company has added more than 50 new employees to its software and services team in the past year.

GoPro shares gained 0.69% to $84.90 in pre-market trading Tuesday.

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