Snap Inc.'s stock surged 7.45% in after-hours trading on Wednesday, following the release of its fourth-quarter financial results.

The significant jump was driven by the company reporting a surprise quarterly profit. Snap posted earnings of $0.03 per share, beating analyst expectations for a loss of $0.03 per share. Furthermore, revenue of $1.72 billion exceeded estimates of $1.70 billion, bolstered by increased advertiser spending during the holiday season. The company noted a 28% rise in total active advertisers on its platform.

Additional positive signals included a better-than-expected adjusted EBITDA and the company's ongoing pivot toward profitable growth through tighter cost control. The performance provided relief to investors amid intense competition in the social media and digital advertising space.