Snapchat, once facing declining users and missed revenue forecasts, has shown notable recovery. Snap Inc. reported $1.51 billion revenue in Q3, a 10% increase year-over-year, surpassing Wall Street’s expectations. Daily active users reached 477 million, with average revenue per user also rising. Snap announced a $500 million stock repurchase program to manage employee stock dilution. Crucially, Snap revealed a $400 million partnership deal with Perplexity AI, integrating AI-powered answers into Snapchat’s chat interface starting early 2026. This collaboration aims to enhance user experience with verifiable AI responses, aligning with Snap’s commitment to trustworthy information. Despite ongoing legal challenges faced by Perplexity AI, including lawsuits from Dow Jones, New York Post, and Reddit, Snap sees this partnership as a growth avenue without advertising on AI responses but potentially driving subscriptions.
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