Snap's stock price rises 10% after beating earnings and announcing a stock buyback program.

• On Tuesday, Snap reported third-quarter results that surpassed expectations on both the top and bottom lines. However, the company provided light guidance for the fourth quarter.
• Snap also announced a $500 million stock repurchase program.
• In September, Snap released the fifth version of its Spectacles augmented reality glasses, which superimpose digital images onto the real world.

On Tuesday, the company reported better-than-expected third-quarter results, but issued light fourth-quarter guidance. As a result, the stock jumped more than 10% in extended trading.

Here is how the company did:

• According to LSEG, the earnings per share were 8 cents adjusted, which is higher than the 5 cents expected.
• Revenue: $1.37 billion vs. $1.36 billion expected, according to LSEG
• According to StreetAccount, the number of global daily active users was 443 million, which is higher than the expected 441 million.
• According to StreetAccount, the global average revenue per user was $3.10, which exceeded the expected $3.09.

In the third quarter, Snap's net loss decreased to $153 million from $368 million a year earlier, while sales increased by 15%.

Fourth-quarter sales will be between $1.51 billion and $1.56 billion. The midpoint of its guidance is $1.54 billion, which is below the average analyst estimate of $1.56 billion. Snap said its adjusted earnings for the fourth quarter will be between $210 million and $260 million. The middle of the range is higher than analysts' estimates of $230.7 million.

Snap also announced a $500 million stock repurchase program.

Snapchat+ now has 12 million paying subscribers, an increase from the 11 million reported in August. The company launched its subscription service in 2022, offering exclusive and prerelease features for $3.99 per month.

Evan Spiegel, CEO of Snap, stated that the company's investments in AI and AR are fueling innovative experiences for its community and driving growth opportunities in advertising, positioning Snap for long-term success.

In September, Snap released the fifth generation of its Spectacles augmented reality glasses, which enable users to see digital imagery overlaid onto the physical world. However, these new Spectacles are only accessible to developers who must pay a monthly fee of $99 for one year in order to create AR apps for the glasses.

Meta CEO Mark Zuckerberg unveiled his company's experimental AR glasses called Orion, which have sparked excitement among employees. The company plans to target developers next year before launching the glasses to consumers.

Developers are crucial to Snap's Spectacles and AR initiatives, as discussed in a letter to investors.

Snap declared in a letter that their goal is to become the most developer-friendly platform globally and are thrilled to introduce their new Spectacles line to developers as an invitation and motivation to create innovative experiences.

Despite the Nasdaq's 25% gain, Snap shares were down 36% for the year prior to the after-hours pop.

Evan Spiegel, CEO of Snap, discusses the company's progress towards achieving a record annual revenue.