Snap's stock rises 24% on strong earnings and a positive outlook.

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Snap surpassed the average estimate of $1.14 billion by delivering a positive revenue prediction for the second quarter, estimating between $1.23 billion and $1.26 billion.

Adjusted EBITDA is expected to be between $15 million to $45 million by the social media business, which is much more than the $10.6 million prediction.

Based on data provided by Bloomberg, the projected number of daily active users is about 431 million, which is also marginally higher than the analyst prediction of 429.06 million.

After-hours trading saw a 24.5% increase in Snap shares.

The upbeat outlook comes after Snap posted impressive first-quarter results, surpassing the $1.05 billion expectation and reporting revenue of $1.19 billion, a 21% year-over-year gain.

All regions saw strong revenue growth: sales from North America rose 16% to $743.1 million, revenue from Europe increased 24% to $195.8 million, and revenue from the rest of the world increased 34% to $255.8 million.

Additionally, the company revealed a significant improvement in adjusted earnings per share (EPS), reporting 3 cents as opposed to a year-over-year loss of 1 cent and far ahead of the projected 4 cent loss per share.

There were 422 million daily active users, up 10% from the previous year. Of these, users from the rest of the world saw the biggest gain, up 19% to 226 million. The impressive result was partly attributed to an increase in the average revenue per user (ARPU) in every region.

Following the release of the data, Bernstein analysts increased their price target for SNAP to $14 in order to account for "better long-term profitability and elevated near-term growth."

Nevertheless, the investment group continued to have doubts about the social media startup.

With a strong beat and rise on the table, the stock rising significantly after hours, and this print being extraordinary in comparison to the previous six quarters, it's difficult to find fault. However, we leave the print no more confident in our ability to project and finance a multi-year growth trajectory, according to experts.Although we still don't know if Snap is too small to be in charge of its own monetization, they continued, "We can't help but be a little more constructive on the runway today than we were yesterday."

A few positive conclusions from the print, such as the inflection of ads, "impressive SMB adoption of ad products," the robust Snapchat+ scale, and "the ongoing unification of ranking models for Stories/Spotlight to increase user engagement and Creator adoption," were cited by BMO Capital Markets analysts, who reiterated their Outperform rating on the stock.