Overview
- Perplexity will pay Snap $400 million over one year in cash and equity, with revenue from the partnership expected to start contributing in 2026.
- Perplexity’s AI answer engine will be embedded in Snapchat’s Chat to deliver conversational responses from verifiable sources without leaving the app.
- Snap said Perplexity will control the responses and that the company will not sell advertising against those answers.
- Snap reported Q3 revenue of $1.51 billion, up 10% year over year, a narrowed net loss of $104 million, 477 million daily active users, and a $500 million stock buyback.
- Shares jumped as much as 25% after hours as Snap guided Q4 revenue to $1.68–$1.71 billion, while warning DAU could dip in Q4 due to new age-verification and regulatory changes including Australia’s minimum-age law.