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Snap Hits Q1 Revenue Target, Ends Perplexity Deal, Issues Cautious Outlook as DAUs Rise

Cautious guidance signals a slow path to steadier growth under lingering ad headwinds.

Overview

  • Snap, reporting results Wednesday after the bell, posted $1.53 billion in Q1 revenue, a $89 million net loss (EPS -$0.05) and $233 million in adjusted EBITDA.
  • Daily active users climbed to 483 million, up about 9 million from last quarter, while average revenue per user slipped sequentially to $3.17 and ad revenue rose 3% to $1.24 billion.
  • The company ended its $400 million partnership with Perplexity in Q1 and said its outlook assumes no revenue from the now-terminated deal.
  • Management said the conflict in the Middle East cut March ad sales by an estimated $20 million to $25 million and noted continued softness from large advertisers in North America.
  • For Q2, Snap guided revenue to $1.52 billion to $1.55 billion, and shares fell in extended trading after the release as investors weighed the cautious tone.