Snap Inc shares surged 7.14% over the 24-hour period, driven by a powerful post-market rally after the company reported second-quarter results that handily exceeded Wall Street expectations. The Snapchat parent posted revenue of $1.60 billion, surpassing the $1.54 billion consensus, while adjusted EBITDA came in at $249.6 million, far above the $188.8 million estimate.

The strong performance was fueled by a significant boost in advertising spending tied to the FIFA World Cup and improved momentum with large North American advertisers. CEO Evan Spiegel highlighted that after several quarters of refining ad products and go-to-market strategies, the company saw better traction with major brands, while small and medium-sized businesses continued to show strength. The adoption of AI-powered tools like Smart Campaign Solutions, which automate bidding and targeting, also helped attract advertisers in a competitive market.

Looking ahead, Snap provided an optimistic third-quarter revenue outlook of $1.70 billion to $1.74 billion, with the midpoint slightly above the $1.70 billion consensus. Adjusted EBITDA guidance of $300 million to $350 million compared favorably with estimates. Daily active users rose 5% year-over-year to 493 million, and the company’s focus on direct-response ads and subscription services contributed to the upbeat results, sending the stock sharply higher in extended trading.