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Snap Says Its $400M Deal with Perplexity 'Amicably Ended'
Snap said its second-quarter outlook excludes Perplexity revenue as shares fell about 4% after first-quarter results.
- On Wednesday, Snap reported first-quarter revenue grew 12% to $1.53 billion, but shares fell about 4% after the company confirmed it ended its $400 million partnership with AI startup Perplexity.
- Announced last November, the partnership aimed to integrate Perplexity's AI search engine into Snapchat, but the companies "amicably ended the relationship" earlier this year, citing product goal mismatches.
- Geopolitical headwinds from the war in Iran cost Snap between 20 and 25 million dollars in advertising revenue during March, though adjusted EBITDA more than doubled to $233 million.
- CEO Evan Spiegel continues prioritizing the company's "AI-driven transformation," protecting the Specs augmented reality glasses subsidiary while cutting costs to fund long-term intelligent eyewear development.
- Snap's second-quarter sales guidance ranges from $1.52 billion to $1.55 billion as the company faces a competitive digital advertising market where scale and AI-powered targeting increasingly dictate growth.
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12 Articles
Snap Q1 2026: Iran war costs $20-25M monthly in ad revenue, Perplexity $400M deal ends, 16% workforce cut as AR glasses bet intensifies
Snap's Q1 revenue grew 12% but stock fell 4%. Iran war cost $20-25M in March ad revenue. Perplexity AI deal ended. 1,000 jobs cut. Specs AR glasses launch is the last bet.
·Amsterdam, Netherlands (Kingdom of the)
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Snap ended its partnership with the start-up of IA Perplexity. A $400 million deal that was to take shape at the beginning of 2026 with Snapchat.
Coverage Details
Total News Sources12
Leaning Left4Leaning Right0Center1Last UpdatedBias Distribution80% Left
Bias Distribution
- 80% of the sources lean Left
80% Left
L 80%
C 20%
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