Snap soars after announcing $400 million deal with Perplexity, strong earnings
Snap shares shot up as much as 25% in after-hours trading after the release of third-quarter earnings that beat estimates, as well as the announcement of a big deal with AI startup Perplexity to integrate its “conversational AI search” into Snap products. Shares have since pared some of those gains, up 16% as of 4:45am ET on Thursday.
Some highlights:
Revenue came in at $1.51 billion, up 10% year on year (compared to Wall Street’s estimate of $1.49 billion).
Adjusted EBITDA was $182 million (estimate: $124 million).
Global monthly active users hit 943 million, up 7% year on year.
Perplexity will pay Snap $400 million “over one year, through a combination of cash and equity, as we achieve global rollout” of its conversational search engine within Snapchat.
The company also announced a $500 million stock buyback program.
Some highlights:
Revenue came in at $1.51 billion, up 10% year on year (compared to Wall Street’s estimate of $1.49 billion).
Adjusted EBITDA was $182 million (estimate: $124 million).
Global monthly active users hit 943 million, up 7% year on year.
Perplexity will pay Snap $400 million “over one year, through a combination of cash and equity, as we achieve global rollout” of its conversational search engine within Snapchat.
The company also announced a $500 million stock buyback program.
