What happened Shares of Stitch Fix (NASDAQ: SFIX) were soaring today after the online styling service turned in better-than-expected results in its third-quarter report and raised its guidance for the full year. As a result, the stock was up 11.7% as of 12:25 p.m. EDT on Tuesday. Image source: Stitch Fix. So what After a disappointing second-quarter report back in March, Stitch Fix bounced back with solid results in its third quarter. Lapping the lockdown-impacted quarter a year ago, revenue jumped 44% to $535.6 million, easily beating the company's own guidance at $505 million to $515 million as well as analyst estimates at $510.6 million. The company saw its second-biggest quarter-over-quarter gain in active clients, increasing by 234,000 to 4.1 million, showing new and reactivated clients returning to the service as the economy reopens. On the bottom line, results were also better than the company had projected as it finished the quarter with an adjusted EBITDA of $11.6 million, compared to a forecast loss of $5 million to $9 million. Based on generally accepted accounting principles (GAAP), the company reported a loss of $0.18 a share, which was better than expectations of a loss of $0.27. Incoming CEO Elizabeth Spaulding said, "We're pleased with our performance this quarter and are excited to meet theneeds and enthusiasm of more and more clients as the world continues to reopen and the apparel retail backdrop improves." Now what Management hiked its guidance for the full year, now calling for revenue of $2.07 billion to $2.08 billion, above its prior forecast of $2.02 billion to $2.05 billion. It also provided full-year adjusted EBITDA guidance for the first time, at $25 million to $30 million. For the fourth quarter, it sees revenue of $540 million to $550 million, representing 22% to 24% growth, which was ahead of the analyst consensus at $534.7 million. Stitch Fix's big test will come at the end of July when it opens up its direct-buy platform to new customers, but the third-quarter results, which overcame what seemed to be conservative guidance, were good enough to reassure investors that the company is on the right track. 10 stocks we like better than Stitch FixWhen investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.* David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Stitch Fix wasn't one of them! That's right -- they think these 10 stocks are even better buys. See the 10 stocks *Stock Advisor returns as of June 7, 2021 Jeremy Bowman owns shares of Stitch Fix. The Motley Fool owns shares of and recommends Stitch Fix. The Motley Fool has a disclosure policy.Source