Snap Surges on Strong Earnings and Optimistic Outlook

Snap Inc. (NYSE:SNAP) saw its stock rise over 1% in pre-market trading Wednesday after delivering better-than-expected quarterly earnings and issuing an upbeat forecast, signaling a rebound in digital advertising.

The Snapchat parent posted earnings per share of $0.16, easily surpassing analysts’ expectations of a $0.04 loss. Revenue climbed to $1.56 billion, slightly ahead of Wall Street's $1.55 billion estimate. The growth was fueled by a surge in advertiser activity, with the number of active advertisers more than doubling in Q4. This momentum helped Snap achieve a 14% year-over-year increase in revenue.

User engagement remained strong, with daily active users (DAUs) reaching 453 million in the quarter. Looking ahead, Snap projects DAUs to grow to approximately 459 million in Q1.

The company expects first-quarter revenue to land between $1.325 billion and $1.360 billion, reflecting confidence in its ongoing recovery. Snap highlighted encouraging trends in user engagement, particularly among more casual users who are spending more time on the platform.

After facing challenges in recent years, Snap has been steadily rebuilding its advertising business and is now looking to expand, planning an 8% to 10% increase in full-time staff throughout 2025. With digital ad spending showing signs of stabilization, the company appears poised for a more sustainable growth trajectory.