Social media platform Snap Inc (NYSE:SNAP) shares are expected to rally more than 11% when US markets open today after third-quarter results highlighted strong active user and revenue growth.
Year-on-year revenue surged 15% to $1.4 billion, with daily active users increasing 9% to 443 million.
Net losses more than halved to $153 million.
“I’m proud of the team’s progress this quarter, delivering strong community growth and deepening engagement while driving improved financial performance,” said chief executive Evan Spiegel.
“Our investments in AI and AR are powering new creative experiences for our community and driving innovation across our advertising platform, underpinning our long-term growth opportunity,” he added.
Snap’s board authorised $500 million worth of share buybacks thanks to a strong cash position.
Snap isn’t the only social media company to be on a rip this Wednesday.
Reddit (NYSE:RDDT) shares are tipped to rally more than 20% after posting its first quarterly profit since going public in March.