It also announced a share repurchase program of up to $500 million.

Shares of Snap initially fell 8% in after-market trading before rising 10% to $12.

The Santa Monica, California-based company, which earns most of its revenue by selling digital advertising, has long struggled against larger competitors like Facebook and Instagram owner Meta Platforms (META.O) To better compete, Snap invested in machine learning to improve its targeting of ads to users and also made it easier for small- and medium-sized businesses to advertise on Snapchat.​