Snap reported Q3 revenue of US$1.5 billion, up 10% year-on-year and above analyst estimates of US$1.5 billion.

The company narrowed its net loss to US$104 million from US$153 million last year.

Daily active users reached 477 million, an 8% rise.

Snap announced a partnership in which Perplexity AI will pay Snap US$400 million to integrate its AI search engine into Snapchat, with revenue contributions expected from 2026.

Perplexity will manage chatbot responses within Snapchat, and Snap will not place ads on this content.

Snap expects DAUs may decline in Q4 due to new regulations and changes in investment priorities, including Australia’s upcoming Social Media Minimum Age bill.

The company projected Q4 revenue between US$1.7 billion and US$1.7 billion, in line with analyst forecasts.

Snap shares rose 16% in after-hours trading following the announcements.

🔗 Source: Reuters

Recent Snap developments