Photo: rswebsols from Pixabay

Snap Inc SNAP shares are soaring in after-hours trading after reporting fourth-quarter and full-year 2021 financial results.

What Happened: Snap reported quarterly revenue of $1.3 billion, which beat the $1.2 billion estimate. The company reported quarterly adjusted earnings of 22 cents per share, which more than doubled the estimate of 10 cents per share.

Global daily active users totaled 319 million in the fourth quarter, representing a 20% year-over-year increase. Snap highlighted that year-over-year growth in DAUs has been 20% or more for five consecutive quarters now.

Average revenue per user reached $4.06 during the quarter, up from $3.44 in the fourth quarter of 2020.

"The strength of our core business has enabled us to accelerate our investments in augmented reality, transforming the way that the Snapchat community experiences the world through our camera," said CEO Evan Spiegel.

What's Next: Snap said it expects first-quarter 2022 revenue to be between $1.03 billion and $1.08 billion versus the estimate of $1.02 billion.

The social media company estimates that adjusted EBITDA will be "approximately breakeven" in the first quarter. 

SNAP Price Action: Snap's report comes a day after Facebook parent Meta Platforms Inc FB issued disappointing guidance for the first quarter, which pulled Snap shares down with it.

Snap fell more than 20% on Thursday before surging more than 60% in after-hours trading.

The stock was up 60.1% at $39.25 at time of publication.