Snap Inc.'s stock jumped 12.67% in after-hours trading on Tuesday, following the release of its fourth quarter and full year 2024 financial results. The company reported solid revenue growth and continued progress towards profitability, fueled by an increase in active advertisers and engagement with its augmented reality (AR) products and services.

Revenue for the fourth quarter climbed 14% year-over-year (YoY) to $1.557 billion, exceeding analysts' expectations. For the full year 2024, Snap's revenue grew 16% to $5.361 billion, driven by the company's efforts to diversify its revenue streams and expand its advertising offerings.

Snap's Daily Active Users (DAUs) increased by 9% YoY to 453 million in Q4 2024, with growth across all regions, including North America, Europe, and the Rest of the World. The company's strong user growth underscores the continued popularity of its AR-powered products and features, such as Lenses and Snap Maps.

The company reported net income of $9.1 million in the fourth quarter, a significant improvement from the net loss of $248.2 million in the same period last year. For the full year 2024, Snap's net loss narrowed to $697.9 million from $1.322 billion in 2023, reflecting the company's efforts to control costs and improve operating leverage.

Snap's Adjusted EBITDA, a non-GAAP measure of profitability, jumped 73% YoY to $276 million in Q4 2024 and reached $508.6 million for the full year, up a remarkable 215% from 2023. The significant improvement in profitability was driven by the company's focus on monetization and cost optimization initiatives.