Snap stock jump more than 11% after earnings beat

Snap (SNAP) reported its third quarter earnings Tuesday after the bell, beating estimates of the top and bottom lines and suggesting that more growth for the social messaging company may be on the horizon.

Snap shares surged up at least 11% in after-hours trading.

These earnings beats were a much-needed win. Snap, owner of Snapchat, has become representative of the malaise that can affect an advertising-dependent tech company. The business has struggled since the launch of Apple’s (AAPL) App Transparency Tracking, and was sent reeling by a digital advertising slowdown that’s only just picking up again.

Many of Snap’s plans for its future — for example, its repeated efforts to make mainstream AR glasses — have yet to fully take. The company this year released its own AI chatbot, My AI, but its rollout has reportedly raised fears among parents concerned for their children’s safety.

In its earnings release, Snap revealed that over 200 million people have used My AI, sending more than 20 billion messages. It has also signed up 5 million people for its premium subscription Snapchat+, adding a potential annual income of more than $200 million.

“We are focused on improving our advertising platform to drive higher return on investment for our advertising partners, and we have evolved our go-to-market efforts to better serve our partners and drive customer success,” Snap CEO Evan Spiegel said in a statement.

Additionally, Snap offered up a relatively optimistic internal forecast, saying that it sees its Q4 adjusted EBITDA coming in between $65 million and $105 million, a wide range but on the high end from Wall Street’s estimates of $100.6 million. Notably, this was not formal guidance; Snap is opting to disclose internal guidance, which should be viewed with some caution.