Snap Issues Cautious Guidance Amid Perplexity Deal Termination and Middle East Uncertainty Snap Inc. reported first-quarter earnings on Wednesday, revealing a cautious outlook for sales while confirming it no longer has a partnership with generative AI startup Perplexity. The company disclosed that its sales guidance for the period assumes no contribution from Perplexity, as the $400 million collaboration, announced in November, ended amicably in Q1. Snap’s shares fell about 4% in extended trading following the report. The earnings report highlighted mixed results. Snap’s revenue reached $1.53 billion, matching Wall Street expectations, but the company faced challenges in advertising growth. Large advertisers in North America remained a headwind, though the firm noted “encouraging signs” of improvement in this segment. Global daily active users (DAU) rose to 483 million, surpassing the 475.6 million expected, driven by updates to features like Lenses and Snap Map. However, the company acknowledged a 3 million decline in DAU quarter-over-quarter in February, attributed to reduced marketing spending and the impact of Australia’s social media minimum age act. Snap’s net loss for the quarter was $89 million, a 36% improvement from the $139.6 million loss in the prior year. The company emphasized progress in key areas, including “accelerated revenue growth, expanded margins, and strong free cash flow.” CEO Evan Spiegel stated, “In Q1, we returned to growth in daily active users, accelerated revenue growth, expanded margins, and generated strong free cash flow.” Looking ahead, Snap projected second-quarter sales between $1.52 billion and $1.55 billion, with the midpoint aligning with analyst estimates of $1.54 billion.#middle_east #perplexity #snap_inc #evan_spiegel #snap_map
