Snap Inc. (SNAP) delivered impressive third-quarter results that exceeded market expectations, driving its shares to surge after the market close on October 29, 2024. The company's efforts to revamp its advertising business and focus on user growth have paid off, fueling investor optimism.

The key highlights from Snap's Q3 2024 earnings report include:

1. Revenue Growth: Snap reported revenue of $1.37 billion, marking a 15% year-over-year increase and surpassing analysts' estimates of $1.36 billion. This robust revenue growth was driven by the company's ability to attract more advertisers and engage its user base effectively.

2. User Expansion: Snapchat's daily active users (DAUs) grew by 9% year-over-year, reaching 443 million. This impressive user growth, which exceeded analysts' projections, demonstrates the platform's continued appeal and ability to captivate a wider audience.

3. Profitability Improvement: Snap reported a 229% year-over-year increase in Adjusted EBITDA, reaching $132 million. This remarkable performance underscores the company's efforts to optimize its cost structure and enhance operational efficiency.

4. Share Buyback Program: In a move aimed at enhancing shareholder value, Snap's board of directors authorized a share repurchase program of up to $500 million. This decision reflects the company's confidence in its long-term prospects and its commitment to offsetting dilution from employee stock compensation.

5. Ad Business Revamp: Snap has been revamping its advertising business, focusing on direct response ads that prompt users to take specific actions, such as visiting a website or downloading an app. This strategic shift has shown signs of promise, contributing to the company's revenue growth.

6. Content Engagement: Snap reported a 25% year-over-year increase in the time users spent watching video content on Snapchat. This heightened engagement has attracted more advertisers to the platform, further bolstering the company's revenue streams.

While Snap's fourth-quarter revenue guidance slightly missed analysts' expectations, the company's strong performance in Q3, coupled with its user growth and advertising strategy, has instilled confidence in investors about its future prospects.