Donald Trump · Meta · U.S. · CNBC Technology
Snap issues cautious guidance as Perplexity agreement ends, Middle East 'geopolitical situation' causes uncertainty
Compiled by KHAO Editorial — aggregated from 2 outlets. See llms.txt for citation guidance.
◎ Multiple-sources
Snap shares dropped about 4% in extended trading after the company reported first-quarter earnings on Wednesday and provided cautious sales guidance while revealing it no longer has a deal with the generative AI startup Perplexity.
Key facts
- Reddit revealed last Thursday its first-quarter earnings in which revenue for the period soared 69% year over year to $663 million, which CEO Steve Huffman told analysts marked seven straight
- Snap's first-quarter sales rose 12% year over year while its net loss was $89 million, representing a narrowing of 36% from the $139.6 million it logged the previous year
- Snap said second-quarter sales will be in the range of $1.52 billion to $1.55 billion
- The company said in April that it would lay off about 16% of its workforce and no longer hire for 300 open positions, while pushing further into an "AI-driven transformation
Summary
Earnings per share: Loss of 5 cents. Global daily active users: 483 million vs. 475.6 million expected, according to StreetAccount. Global average revenue per user, or ARPU: $3.17 vs. $3.20 expected, according to StreetAccount. Snap's first-quarter sales rose 12% year over year while its net loss was $89 million, representing a narrowing of 36% from the $139.6 million it logged the previous year.