Snap issues cautious guidance as Perplexity deal ends, Middle East 'geopolitical situation' causes uncertainty

Evan Spiegel, co-founder and chief executive officer of Snap Inc., during the Axios Media Trends Live event in New York, US, on Thursday, Sept. 18, 2025. Michael Nagle | Bloomberg | 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. Here is how the company did compared with Wall Street's expectations: Earnings per share : Loss of 5 cents. That figure is not comparable to analysts' estimates. Revenue : $1.53 billion vs. $1.53 billion expected, according to LSEG Global daily active users : 483 million vs. 475.6 million expected, according to StreetAccount Global average revenue per user (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. The company said in an investor letter that "large advertisers in North America remained a headwind to advertising growth" in the first quarter, and while the company is "not satisfied with that outcome," it is "beginning to see encouraging signs that this part of the business is improving." Global daily active users, or DAU, rose 5% year-over-year, which the company attributed to new product updates related to its Lenses digital filters and Snap Map feature, among others. …