Snap Inc shares surged 11.32% in after-hours trading following the release of its second-quarter financial results, which handily exceeded Wall Street expectations.

The Snapchat parent reported revenue of $1.60 billion, surpassing the analyst consensus of $1.54 billion, while adjusted EBITDA came in at $249.6 million, far above the $188.8 million estimate. The strong performance was fueled by a boost in advertising spending during the FIFA World Cup and increased campaign activity from large advertisers in North America, according to the company. Snap's focus on direct response ads and its AI-powered Smart Campaign Solutions helped attract advertisers in a competitive market.

Daily active users rose 5% year-over-year to 493 million. Looking ahead, Snap provided an optimistic third-quarter revenue forecast of $1.70 billion to $1.74 billion, with the midpoint slightly above the $1.70 billion consensus estimate. Adjusted EBITDA guidance of $300 million to $350 million also compared favorably with the $329.9 million estimate. The combination of a strong quarterly beat and solid forward guidance fueled the sharp post-market rally.