Snap (SNAP  ) jumped 16% in after hours trading following its strong Q2 earnings report. The company delivered strong figures well above expectations across numerous categories including revenue, earnings, and user growth. The company's stock should open at a new, all-time high following more than 8 months of sideways trading.

Inside the Numbers

In Q2, Snap reported $0.10 per share in earnings which topped expectations of a loss of $0.01 per share. Revenue also beat at $982 million which topped expectations of $846 million. Global daily active users came in at 293 million, while analysts were looking for 290 million. The average revenue per user also handily beat expectations at $3.35 vs. $2.92.

One reason for Snap's better than expected report was that the company said there was a minimal impact from Apple's privacy changes which had been expected to negatively affect social media platforms reliant on delivering targeted ads. It could be due to Apple (AAPL  ) rolling out its new OS later than expected or more users opting into Snap's targeting.

So, it's still possible that the effect of these new changes could be felt in the next quarter, but the company said it is seeing higher opt-in rates than expected and now has more time to work with advertisers to navigate the transition.

Overall, the quarter was very positive for Snap and shows that the company's growth trajectory remains steep despite its stock price flattening out over the past couple of months. Snap's net loss was down 53% to $152 million, from a loss of $326 million a year ago. The number of daily active users increased by 5% compared to last quarter and 23% compared to last year.

In terms of Q3, Snap anticipates revenue growth between 58% and 60% and hit 301 million daily active users. Both figures were slightly above expectations. This marks Snap's fifth straight quarter of beating earnings expectations.

Stock Price Outlook

Snap and Twitter's (TWTR  ) strong earnings results are driving the entire social media sector higher. The stock's consolidation since the fall of last year means that valuations have also come down. Equally important, the company is on pace to become profitable next year as well.

Although it's probably wise to not chase Snap here, the stock remains a buy and should be accumulated on weakness.