Snapchat owner Snap handily beat Wall Street expectations in Q3, and announced a surprise AI deal: a $400 million agreement with Perplexity that will integrate its conversational search into the app.
Snap said that it now reaches 943 million monthly active users, up 7 percent year over year, as the company closes in on the billion user mark. Revenue grew 10 percent to $1.51 billion, with $182 million of Adjusted EBITDA and $93 million of free cash flow. The company reported a net loss of $104 million, a substantial improvement from the same quarter a year earlier.
As for that Perplexity deal: The AI company will pay $400 million in a mix of cash and stock, and Perplexity will begin integrations early next year, with the company teasing more deals: “This is the first step in our effort to make Snapchat a platform where leading AI companies can connect with our global community in creative and trusted ways.”
“Our focus on performance, creativity, and simplicity is helping advertisers achieve stronger results while giving our community more ways to communicate,” said Evan Spiegel, Snap’s CEO. “I’m proud of the team’s progress and confident that our discipline and innovation will support durable, long-term growth.”
