Snap, parent company of Snapchat, announced healthy Q1 results on Thursday and, as a result, the company is enjoying a stock price bump this morning.

In its first quarter of the year, Snap reported a 21% increase in revenue to $1.195 billion, compared to $989 million for the same period last year while net lossed were $305 million, compared to $329 million in the prior year.

“The value we provide our community and advertising partners has translated into improved financial performance,” said Evan Spiegel, CEO, in a statement. “Our large, growing, and hard-to-reach community, brand-safe environment, and full-funnel advertising solutions have made us an increasingly important partner for businesses of all sizes.”

To that end, the company reported that the number of small and medium-sized advertisers increased 85%, year-over-year. To ensure new and existing brands are safe on the platform,  Snap launched two new brand safety solutions for advertisers earlier this year. First, a third-party measurement product in partnership with Integral Ad Science, a global media measurement and optimization platform, to provide advertisers with increased transparency across their Snapchat campaigns, as well as a first-party tool that allows advertisers greater control over where their ads appear.

And the platform’s user base is growing, too. According to Snap, daily active users (DAUs) were 422 million in Q1 2024, an increase of 39 million, or 10%, year-over-year. This has contributed to a 125% increase in time spent watching its Spotlight content.

“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 in its letter to investors. “Our Q2 guidance range for revenue is $1.225 billion to $1.255 billion, implying year-over-year revenue growth of 15% to 18%.”