**Snapchat's Parent Company Beats Market Expectations, Announces Share Buyback**

Snap Inc., the parent company of Snapchat, outperformed Wall Street predictions for revenue and user growth in the latest quarter, enticing advertisers back with enhanced ad features. Alongside these promising results, the company unveiled a share repurchase program worth up to $500 million.

Initially, Snap's shares dipped by 8% in after-market trading but later surged by 10%, reaching $12. Headquartered in Santa Monica, California, Snap generates the majority of its revenue from digital advertising. The company has historically faced stiff competition from industry giants like Meta Platforms, the owner of Facebook and Instagram. To level the playing field, Snap has invested heavily in machine learning to improve ad targeting and made it easier for small- and medium-sized businesses to advertise on the platform.

For the third quarter, which ended on September 30, Snap reported a 15% increase in revenue year-over-year, bringing in $1.37 billion. This figure surpassed the average analyst estimate of $1.36 billion. Looking ahead, Snap forecasts current-quarter revenue to fall between $1.51 billion and $1.56 billion, with Wall Street aiming for the higher end of this spectrum based on Refinitiv data.

The fourth quarter is particularly critical due to the holiday shopping season, a time when brands typically spend heavily on advertising to boost sales. Snap acknowledged in a letter to shareholders that while advertising from large companies has historically bolstered their year-end business, there has been a recent decline in demand from these advertisers.

Snapchat's daily active users also saw a significant rise, growing 9% year-over-year to 443 million, exceeding analyst expectations of 441 million.