Core Insights - Snap's stock surged over 15%, reaching $8.4 [1] - The company reported a 10% year-over-year revenue growth to $1.5 billion, exceeding market expectations of $1.49 billion [1] - Net loss narrowed to $104 million, translating to a loss of $0.06 per share [1] - Global daily active users reached 477 million, slightly above the expected 476 million [1] - Average revenue per user (ARPU) was $3.16, also slightly above the anticipated $3.13 [1] - Snap announced a $400 million partnership with AI startup Perplexity, with plans to integrate Perplexity's AI search engine into Snapchat starting in 2026 [1]

Core Viewpoint - Snap Inc experienced a significant stock increase of over 18%, closing at $8.63, following a better-than-expected third-quarter earnings report [1] Financial Performance - Third-quarter revenue grew by 10% year-over-year to $1.51 billion, slightly exceeding analyst expectations [1] - Net loss narrowed to $104 million, compared to a net loss of $153 million in the same period last year, and significantly better than the anticipated loss of over $200 million [1] - The company forecasts fourth-quarter revenue to be between $1.68 billion and $1.71 billion, with a midpoint of $1.695 billion, slightly above Wall Street's expectation of $1.69 billion [1] - Adjusted EBITDA for the fourth quarter is expected to range from $280 million to $310 million, surpassing the StreetAccount forecast of $255.4 million [1] Strategic Developments - Snap announced a $400 million partnership with AI startup Perplexity, which will be paid through a combination of cash and equity over one year [1] - This partnership is expected to provide Snap with a new revenue stream, as its advertising business has faced pressure from well-funded competitors like Meta [1]

Core Insights - Snap Inc experienced a significant stock increase of over 18%, closing at $8.63, following a positive earnings report for Q3 [1] - The company's Q3 revenue grew by 10% year-over-year to $1.51 billion, slightly exceeding analyst expectations [1] - Net loss for the quarter narrowed to $104 million, compared to a net loss of $153 million in the same period last year, outperforming analyst predictions of over $200 million loss [1] - Snap's Q4 revenue is projected to be between $1.68 billion and $1.71 billion, with a midpoint of $1.695 billion, slightly above Wall Street's expectation of $1.69 billion [1] - Adjusted EBITDA for Q4 is expected to range from $280 million to $310 million, surpassing StreetAccount's forecast of $255.4 million [1] - Snap announced a $400 million partnership with AI startup Perplexity, which will pay through a combination of cash and equity over one year, starting in 2026, providing a new revenue stream for the company [1] Financial Performance - Q3 revenue: $1.51 billion, a 10% increase year-over-year [1] - Q3 net loss: $104 million, improved from $153 million year-over-year [1] - Q4 revenue forecast: $1.68 billion to $1.71 billion [1] - Q4 adjusted EBITDA forecast: $280 million to $310 million [1] Strategic Developments - Partnership with Perplexity valued at $400 million, aimed at enhancing revenue through significant ad placements in Snapchat [1] - The partnership is a strategic move to counteract competition from well-funded rivals like Meta [1]

Partnerships & AI Strategy - Snap enters into a deal with Perplexity to participate in the AI sector [1]

Core Insights - Snap has signed a deal with Perplexity to integrate its AI search engine into Snapchat, with Perplexity paying Snap $400 million in cash and equity [1] - The integration will provide access to over 940 million Snapchat users, allowing them to receive answers from the AI engine through the My AI chatbot [1] - Revenue from this deal is expected to start being recorded by Snap in 2026 [1] Financial Performance - Snap reported Q3 2025 revenue of $1.51 billion, reflecting a 10% increase year-over-year [2] - The company narrowed its losses to $104 million, down from $153 million a year ago [2] - Snap's subscription service, Snapchat+, has surpassed 17 million users [2]

Core Insights - Snap shares increased significantly in premarket trading following the announcement of a $400 million deal with AI firm Perplexity and a $500 million stock buyback program, alongside a strong Q3 earnings report that exceeded analyst expectations [1][4] Group 1: Partnership with Perplexity - Snap has entered into a $400 million deal with AI startup Perplexity, which will integrate its AI-powered search engine into the Snapchat app starting early next year [2][3] - The integration will allow users to ask questions and receive conversational answers from verifiable sources within Snapchat's chat interface [2] - Perplexity will pay Snap through a combination of cash and equity, and will control the responses from their chatbot, with no advertising sold against these responses [3] Group 2: Earnings Report Highlights - For Q3 2025, Snap reported revenue of nearly $1.51 billion, representing a 10% increase year-over-year, surpassing analyst estimates of approximately $1.49 billion [4] - The daily active user base grew to 477 million, an 8% increase year-over-year, while monthly users rose by 7% to 943 million [4] - The company noted an increase in user engagement metrics, including time spent watching content and the number of content viewers, although specific figures were not disclosed [4]

Core Viewpoint - Snap's third-quarter revenue increased by 10% year-over-year to $1.5 billion, slightly exceeding analyst expectations, while net loss narrowed to $104 million, better than the anticipated loss of over $200 million. The company announced a $400 million partnership with AI startup Perplexity, which will be integrated into Snapchat starting in 2026, opening new revenue streams amid challenges in its advertising business [1][3][5]. Group 1: Financial Performance - Snap's third-quarter revenue reached $1.5 billion, marking a 10% year-over-year growth, which is above analyst forecasts [3]. - The net loss for the quarter was $104 million, significantly better than the expected loss of over $200 million, attributed to restructuring and cost control measures [3][5]. - Despite the recent stock surge, Snap's shares have declined approximately 20% year-to-date [3]. Group 2: Strategic Partnerships and Future Plans - Snap has entered into a $400 million agreement with Perplexity, which will pay through a combination of cash and equity over the next year [3][5]. - The integration of Perplexity's AI search engine into Snapchat is set to begin in 2026, allowing users to ask questions and receive clear, conversational answers from verified sources within the app [5]. - This partnership aims to create new revenue channels for Snap, particularly as it faces challenges in advertising growth against competitors like Meta [5]. Group 3: User Engagement and Market Position - Snap reported a 7% year-over-year increase in monthly active users, reaching 943 million [5]. - The company is shifting the development of its augmented reality glasses, Spectacles, to a subsidiary named "Specs," similar to Alphabet's Waymo model, and is in talks with investors for additional funding [5].

This copy is for your personal, non-commercial use only. Distribution and use of this material are governed by our Subscriber Agreement and by copyright law. For non-personal use or to order multiple copies, please contact Dow Jones Reprints at 1-800-843-0008 or visit www.djreprints.com. Snap Stock Surges on Earnings and New Perplexity Deal By Adam Levine Updated Nov 05, 2025, 9:38 pm EST / Original Nov 05, 2025, 6:51 pm EST Share Resize Reprints In this article SNAP Shares of Snapchat parent Snap soared 15 ...

Core Viewpoint - Snap's stock surged over 16.4% after the release of its Q3 earnings, indicating positive market reaction to the results and future outlook [1] Financial Performance - Q3 revenue increased by 10% year-over-year to $1.5 billion, surpassing market expectations of $1.49 billion [1] - Net loss narrowed to $104 million, translating to a loss of $0.06 per share [1] - Global daily active users reached 477 million, exceeding the forecast of 476 million [1] - Average revenue per user (ARPU) was $3.16, slightly above the expected $3.13 [1] Future Outlook - The company anticipates Q4 revenue to be between $1.68 billion and $1.71 billion, with the midpoint slightly above the market expectation of $1.69 billion [1] - Snap announced a $400 million partnership with AI startup Perplexity, with plans to integrate Perplexity's AI search engine into the Snapchat app starting in 2026 [1]

Core Insights - Snap announced a $400 million partnership with AI startup Perplexity, leading to a stock price surge of over 20% after the release of better-than-expected Q3 earnings [1][3] - The partnership aims to integrate Perplexity's AI search engine into Snapchat by 2026, providing users with conversational answers from verified sources [3] - Snap's Q3 revenue increased by 10% year-over-year to $1.5 billion, surpassing analyst expectations, while net losses narrowed to $104 million, significantly better than the anticipated loss of over $200 million [1][3] Financial Performance - Q3 revenue reached $1.5 billion, a 10% increase year-over-year, slightly above analyst forecasts [1] - Net loss for the quarter was $104 million, much lower than the expected loss of over $200 million [1] - Despite the positive quarterly results, Snap's stock has declined approximately 20% year-to-date [1] Advertising and Market Challenges - North American advertising revenue grew only 1% year-over-year, with reduced spending from major brand advertisers being a significant obstacle to overall revenue growth [1] - The partnership with Perplexity is seen as a new revenue channel amid challenges in advertising growth, particularly against competitors like Meta [3] - Snap's monthly active users increased by 7% year-over-year to 943 million, indicating a growing user base despite advertising challenges [3] Strategic Developments - Snap is shifting the development of its augmented reality glasses, Spectacles, to a subsidiary named "Specs," following a model similar to Alphabet's Waymo [3] - The company is in discussions with investors to inject more funds into the Specs division, although the launch of Specs products in 2026 is planned without reliance on external capital [3]