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Snap Reports Q1 Growth, Ends Perplexity Deal, Issues Cautious Outlook

The company is tightening its focus on profit due to a murkier near-term outlook.

Overview

  • Revenue rose 12% to $1.53 billion, and daily active users reached 483 million after adding 9 million from the prior quarter.
  • Snap said it ended its $400 million partnership with AI startup Perplexity and no longer expects any contribution from the deal.
  • The company guided second-quarter revenue to $1.52 billion to $1.55 billion and based that view on zero Perplexity revenue.
  • The outlook also assumes a steady operating environment in the Middle East, though Snap warned the region’s trajectory remains uncertain.
  • Management said large North American advertisers still weighed on growth, and recent restructuring cut about 1,000 jobs and closed more than 300 open roles to lower costs.