Snap Q1 Revenue Hits $1.53B, Beats Estimates

Snap Inc. reported stronger-than-expected first-quarter results on Thursday, with revenue rising 12 percent year-over-year to $1.53 billion and its net loss narrowing to $89 million from $140 million a year earlier. The Snapchat parent company also disclosed that it amicably ended its partnership with AI search firm Perplexity in the first quarter, removing an anticipated revenue stream from its outlook.

The results beat analyst estimates, including a per-share loss of 5 cents against expectations of 7 cents. Adjusted EBITDA more than doubled to $233 million, while free cash flow surged to $286 million. Global daily active users reached 483 million, up 5 percent from the prior year, and monthly active users climbed to about 956 million. Executives attributed the user growth to features like Snap Map and augmented reality lenses, particularly in international markets outside North America.

Snap cited several headwinds affecting performance. Large advertisers in North America showed uneven recovery, contributing to just 2 percent regional revenue growth to $851 million. Geopolitical tensions in the Middle East led to a $20 million to $25 million revenue impact, alongside declining...