Snap exceeded fourth-quarter revenue expectations, with a 10% increase to $1.72 billion, sending shares up over 2%. Active advertisers grew 28%, showcasing strength in new ad formats. Snap expects first-quarter revenue between $1.50 billion and $1.53 billion, excluding revenue from the Perplexity integration. Quarterly net income rose to $45 million.

Snapchat’s parent company focuses on attracting big budgets from enterprise advertisers. The company saw strong growth in medium-customer segment globally, with North America leading dollar growth. The quarterly outlook for adjusted EBITDA was higher than estimates, emphasizing profitable growth through cost control. Net loss for 2025 narrowed to $460 million.

Snapchat+ subscriptions grew by 71% to 24 million. Daily active users reached 474 million, up 5% year-over-year but down 3 million from the previous quarter. Snap is expanding into augmented reality glasses with Specs unit and diversifying revenue streams through Snapchat+. Investors are encouraged by Snap’s ability to compete with larger platforms.

Read more at Yahoo Finance: Snap reports upbeat revenue as holiday season fuels ad sales