Snap shares fell approximately 4% in after-hours trading. First-quarter revenue rose 12% year-over-year to $1.53 billion. This result met analyst expectations. Global daily active users increased 5% to 483 million.
The stock declined after Snap and AI startup Perplexity terminated a $400 million deal. Both companies ended the partnership amicably during the first quarter. The agreement originally aimed to integrate Perplexity’s AI answer engine into Snapchat.
Snap issued second-quarter revenue guidance between $1.52 billion and $1.55 billion. This outlook assumes no financial contribution from the Perplexity partnership.