Snap Inc., the parent company of popular social media platform Snapchat, reported its first-quarter results on Thursday, delivering a strong performance that surpassed analysts' estimates and demonstrated a return to double-digit revenue growth.

The company's revenue for the first quarter increased by an impressive 21% to reach $1.19 billion, surpassing the projected $1.12 billion. This growth was fueled by improvements in Snap's advertising platform and a strong demand for its direct-response advertising solutions. Advertising revenue alone accounted for $1.11 billion in the first quarter.

Snap's earnings per share came in at 3 cents, adjusted for one-time items, beating expectations of a 5-cent loss. The adjusted EBITDA for the quarter was reported at $46 million, surpassing analysts' estimates of a $68 million loss.

Notably, Snap's global daily active users (DAUs) reached 422 million in the first quarter, up 10% compared to the previous year. The company expects to see further growth in the second quarter, projecting around 431 million DAUs.

Snap's "Other Revenue" category, primarily driven by its Snapchat+ subscribers, also experienced significant growth. With more than 9 million Snapchat+ subscribers during the quarter, this category generated $87 million, marking a substantial increase of 194% year over year.

The strong financial performance and accelerating revenue growth indicate that Snap's efforts to rebuild its ad business are paying off. The company has focused on improving its advertising platform and streamlining operating expenses, resulting in better-than-expected financial results.

Despite the positive performance, Snap's growth rate still fell behind that of its competitor Meta, which reported 27% growth in its recent first-quarter results. However, Meta's shares dropped due to a light forecast and mentions of long-term investments that spooked investors.

Looking ahead, Snap expects to report second-quarter revenue between $1.23 billion and $1.26 billion, surpassing analysts' expectations. The adjusted EBITDA is projected to fall between $15 million and $45 million.

The company also provided insights into its full-year 2024 cost structure, anticipating quarterly infrastructure costs per DAU to be between 83 cents and 85 cents for the rest of the year.

Snap's investor letter expressed confidence in the company's ability to continue improving business performance. The letter cited the progress made in the ad platform, the leadership team, and the strategic priorities set by Snap.

In February, Snap announced a workforce reduction of around 10%, affecting approximately 500 employees. The company confirmed that headcount and personnel costs will see modest growth for the remainder of the year.

Snap plans to hold its quarterly call with investors at 5:30 p.m. ET on Thursday to further discuss its impressive first-quarter results and provide additional insights into its business strategies and future growth prospects.