A significant increase in revenue in the past quarter has restored Wall Street's faith in the photo app Snapchat.
The shares of parent company Snap jumped by more than a quarter in after-hours trading on Thursday. Three months ago, the share price had plummeted by more than 3% following the disappointment of that quarter's figures.
Now, Snap's revenue rose by 21% year-on-year to just under $1.19 billion in the past quarter. Prior to this, Snapchat's once rapidly growing advertising business had weakened because advertising dollars had increasingly flowed to heavyweights such as Google and Facebook.
Snap posted a net loss of $305 million after being $328 million in the red a year ago. Snap CEO Evan Spiegel has already resorted to cost-cutting measures to counteract this.
Snap forecast revenue of between $1,225 million and $1,255 million for the current quarter, hitting the lower end of analysts' estimates.