Snap Inc. (NYSE:SNAP) shares are skyrocketing in the premarket session on Friday.

Yesterday, the company reported its first-quarter financial results with quarterly earnings of 3 cents per share, beating the analyst consensus estimate of a loss of 5 cents per share.

Adjusted EBITDA was $46 million, compared to $1 million in the prior year.

While reporting quarterly results, Snap highlighted new tools, including new Creative Templates, the ability to post longer videos, and access to AI-powered AR Lens creation.

The company said it onboarded over 1,500 Snap Stars in the quarter, which has helped generate quarter-over-quarter growth in Story posts, Spotlight posts, and Stories time spent for Snap Stars globally.

Based on these strengths, quarterly sales clocked in at $1.195 billion, which beat the analyst consensus estimate of $1.12 billion by 6.74% and represents a 20.88% increase over sales of $988.608 million from the same period last year.

The company reported 422 million daily active users in the first quarter, an increase of 39 million, or 10%, year-over-year.

Snap sees second-quarter revenues between $1.225 billion and $1.255 billion.

"As we enter Q2, we anticipate continued growth of our global community, and as a result, our Q2 guidance is built on the assumption that DAU will be approximately 431 million in Q2," the company said.

According to Benzinga Pro, SNAP stock has gained over 15% in the past year. Investors can gain exposure to the stock via Global X Social Media ETF (NASDAQ:SOCL) and Fidelity Disruptive Communications ETF (NASDAQ:FDCF).

Price Action: SNAP shares are trading higher by 25.6% at $14.32 premarket at last check Friday.

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