Snap has issued a positive revenue forecast for the second quarter, projecting between $1.23 billion and $1.26 billion, which surpasses the consensus estimate of $1.14 billion.

The social media company expects adjusted EBITDA to range from $15 million to $45 million, significantly ahead of the $10.6 million estimate. 

The forecast for daily active users is approximately 431 million, also slightly above the analyst estimate of 429.06 million, according to the data compiled by Bloomberg.

Snap shares gained as much as 25.7% in after-hours trading.

The optimistic guidance follows strong first-quarter results where Snap reported revenue of $1.19 billion, marking a 21% year-over-year increase and topping the $1.05 billion estimate. 

Revenue growth was robust across all regions: North America revenue increased by 16% to $743.1 million; Europe revenue grew 24% to $195.8 million; and revenue from the rest of the world jumped 34% to $255.8 million.

The company also reported a notable improvement in adjusted EPS, which came in at 3 cents compared to 1 cent year-over-year, and well ahead of the expected 4 cent loss per share. 

Daily active users reached 422 million, a 10% increase year-over-year, with notable growth in users from the rest of the world, which rose by 19% to 226 million. The average revenue per user (ARPU) increased across all regions, contributing to the strong performance.