By The News International
Publication Date: 2026-05-07 16:13:00
Snapchat’s founder company, Snap, recently took a bold step by ending a $400 million mega-deal with Perplexity AI.
The Snap-Perplexity AI deal, which aimed at offering answers to users’ questions within the Snapchat app, was unveiled in November.
The decision came as Snap said on Wednesday its first-quarter advertising revenue was impacted by the conflict in the Middle East and slowing growth in North America, sending its shares 7% lower in extended trading.
Snap’s North America revenue growth slows
Advertising revenue rose 3% to $1.24 billion in the quarter, driven by direct response ads, designed to prompt specific actions like app downloads or website visits.
The company said it had an estimated $20 million to $25 million impact from the Middle East conflict during March and that it expects the geopolitical uncertainty to persist.
Squeezed between dominant platforms such as TikTok and Meta’s Instagram in a crowded market, Snap has been turning to subscriptions to boost its revenue.
Revenue of $1.53 billion for the…
