Snap Inc. (SNAP), the parent company of the popular social media app Snapchat, saw its shares surge on Tuesday after reporting impressive third-quarter financial results and announcing a share buyback program.

In the quarter ended September 30, 2024, Snap's revenue climbed 15% year-over-year to $1.37 billion, surpassing analysts' expectations of $1.36 billion. This robust revenue growth was driven by the company's ability to attract more users and engage its existing user base effectively.

Daily Active Users (DAUs), a key metric for Snap, grew by an impressive 9% year-over-year, reaching 443 million. This growth signifies the continued popularity of Snapchat among users and bodes well for the company's future prospects.

Furthermore, Snap demonstrated significant improvement in its profitability metrics. The company reported a 229% year-over-year increase in Adjusted EBITDA, reaching $132 million, reflecting its efforts to optimize cost structure and operational efficiency.

In a move aimed at enhancing shareholder value, Snap's board of directors authorized a stock 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 related to the issuance of restricted stock units to employees.

Snap's success can be attributed to its continued investments in areas such as generative AI, autonomous driving, and augmented reality. The company has been at the forefront of innovation, developing cutting-edge AR filters and lenses that have resonated with its user base. With plans to expand its offerings in these domains, Snap is well-positioned to capitalize on emerging trends and drive further growth.