What happened: Snap (SNAP) stock surged 6% in premarket trading on Tuesday.

What’s behind the move: The social media company’s second quarter revenue was higher than expected, and its loss per share was smaller than expected.

Quarterly revenue increased 18% year over year to $1.6 billion, versus expectations of $1.53 billion.

“After several quarters of improving our ad products and go-to-market approach, we saw better momentum with large advertisers in North America and stronger revenue growth internationally,” CEO Evan ⁠Spiegel said during the earnings call. “World Cup-related spending contributed during the quarter, alongside continued strength among small and medium-sized businesses.”

What else you need to know: Management highlighted that Snapchat is approaching 1 billion monthly users.

The number of people posting to Spotlight, an algorithmic video feed within Snapchat, grew more than 115% year over year, while Spotlight daily active users grew more than 20%.

In Q2, Snap reported a loss per share of $0.10. Going into the print, Wall Street expected the social media platform to report a loss per share of $0.12, according to S&P Global Market Intelligence.

Snap shares are down more than 38% year to date. The company has faced intense competition in the social media and advertising space from Meta’s Facebook (META) and TikTok, as well as rising infrastructure costs.

The stock is down roughly 93% from its all-time high of nearly $75 in 2021.

Ines Ferre is a senior business reporter for Yahoo Finance. Follow her on X at @ines_ferre.

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