The owner of Snapchat, Snap (SNAP), saw its shares surge over 11%, marking a much-needed win for the advertising-dependent tech company.
Snap reported Q3 earnings, surpassing expectations and indicating potential growth for the social messaging company.
The business has faced challenges since Apple's (AAPL) App Transparency Tracking launch and a slowdown of digital advertising, which is now beginning to recover.
Snap's future plans include the launch of mainstream AR glasses, but other releases like its AI chatbot have faced challenges such as raised safety concerns among parents.
In its earnings release, Snap disclosed that the AI bot, My AI, had over 200 million users with 20 billion messages sent.
The company generated revenue that surpassed Wall Street's estimated $1.11 billion at $1.19 billion.
Most notably, Snap's daily active users have grown by 12% year over year. The report also announced the retirement of Snap's COO Jerry Hunger.
Snap's investor letter acknowledged the challenges that were faced in Q3 and also expressed concerns about a potential advertising downturn in the future because of the war in Israel.