Investing.com -- Snap Inc (NYSE: SNAP ) shares jumped more than 7% in after-hours trading after the Snapchat owner posted better-than-expected quarterly earnings and issued an upbeat outlook on the back of stabilizing digital ad spending.

The social media company reported earnings per share of $0.16, comfortably beating analysts’ estimates of a loss of $0.04. Revenue rose to $1.56 billion, slightly ahead of Wall Street expectations of $1.55 billion.

"Active advertisers more than doubled in Q4, with the improvements we have made to our advertising platform driving improved advertiser performance and helping to grow revenue 14% year-over-year,” said CEO Evan Spiegel.

Daily active users (DAUs), a key metric for social media companies, climbed to 453 million in the quarter, and Snap projected first-quarter DAUs to reach about 459 million.

The company expects first-quarter revenue to range between $1.325 billion and $1.360 billion.

"We continue to see encouraging trends in engagement metrics, including increased contentactive days among less frequent and more casual users," Snap said in a statement.

Snap has been reviving its advertising business following a slump in recent years. The company also plans to expand its full-time headcount by 8% to 10% over the course of 2025.