Snap shares jumped rallied in extended trading on Tuesday after the company reported better-than-expected fourth-quarter results.

Here is how the company did compared with Wall Street’s expectations.

• Earnings per share: 16 cents adjusted vs. 14 cents expected, according to LSEG
• Revenue: $1.56 billion vs. $1.55 billion expected, according to LSEG 
• Global daily active users: 453 million vs. 451.1 million expected, according to StreetAccount
• Global average revenue per user: $3.44 vs. $3.44 expected, according to StreetAccount

Revenue for the fourth quarter increased 14% from $1.36 billion a year earlier. Net income in the quarter was $9.1 million, or a penny a share. In the prior year, Snap recorded a fourth-quarter net loss of $248 million, or 15 cents a share.

Snap said that it expects first-quarter revenue to come in between $1.325 billion and $1.36 billion. The midpoint of that range is $1.34 billion, higher than Wall Street projections of $1.33 billion.

However, Snap’s first-quarter adjusted earnings will fall in the range of $40 million to $75 million, below analyst expectations of $78.5 million. In an investor letter, Snap attributed the guidance to “investment plans for the quarter ahead.”

First-quarter adjusted operating expenses will grow in the range of 11% to 12% year-over-year due to hiring, legal-related costs, and “a seasonal shift of marketing expenses into Q1 relative to the prior year,” Snap said.

“As we look ahead to 2025, we see additional opportunities to invest productively in scaling our business given the foundational improvements we have made to our ad platform and the momentum we have established in our go to market initiatives,” particularly in the segment focused on small and medium-sized businesses, Snap said in the letter. “Our investment plans for 2025 reflect this optimism, alongside a strong commitment to make further financial progress towards profitability as we scale.”

Additionally, the company said it committed $5 million to “support communities and team members” affected by the recent Los Angeles Wildfires and that it anticipates making “further commitments over time.”

In September, the New Mexico attorney general filed a lawsuit against Snap that alleged the company’s Snapchat app’s design and recommendation systems “openly foster and promote illicit sexual material involving children and facilitate sextortion and the trafficking of children, drugs, and guns.” Earlier in January, Snap shares dropped after the Federal Trade Commission said it would refer a complaint against the company related to its My AI chatbot to the Department of Justice.

Last week, Meta reported fourth-quarter results that beat on revenue and earnings and reiterated its plans to spend heavily on AI-related investments. Alphabet on Tuesday beat on earnings but missed on revenue. Pinterest reports earnings on Thursday followed by Reddit next week.

Snap said daily active users for the first quarter will be 459 million, topping analyst expectations of 458.3 million.

The company said its Snapchat+ service now has 14 million subscribers, up from the 12 million it reported during the third quarter. The service, which debuted in 2022, makes up the bulk of what Snap calls “other revenue.” That unit grew 131% year-over-year in 2024 and has an “annualized revenue run rate of well over $500 million,” the company said.

Snap said that Ajit Mohan will become chief business officer after previously serving as president of Asia-Pacific region. Before joining Snap in 2023, Mohan was the vice president and managing director of India at Meta.

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