On Thursday, Snap Inc (SNAP.US) surged more than 18% to $8.63 per share, driven by two key positive developments.

The company reported Q3 revenue of $1.51 billion, up 10% year-over-year and slightly above analyst expectations. Thanks to restructuring and cost-control measures, its net loss narrowed to $104 million, compared with $153 million in the same period last year—significantly better than the anticipated $200+ million loss projected by analysts.

For Q4, Snap expects revenue between $1.68 billion and $1.71 billion, with the midpoint of $1.695 billion slightly exceeding Wall Street's $1.69 billion estimate. Additionally, adjusted EBITDA is projected to range from $280 million to $310 million, surpassing StreetAccount's forecast of $255.4 million.

In another boost, Snap announced a $400 million partnership with AI startup Perplexity on Wednesday. Perplexity will pay $400 million in a mix of cash and equity over one year, securing prominent placement within Snapchat starting in 2026. This deal opens a new revenue stream for Snap, whose ad business growth has faced pressure from deep-pocketed rivals like Meta.