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

Snap reported first-quarter earnings that met revenue expectations at $1.53 billion and exceeded user growth forecasts with 483 million global daily active users, though the company posted a net loss of $89 million. The company issued cautious second-quarter guidance of $1.52-$1.55 billion in sales, citing weakness from large North American advertisers and a "geopolitical situation" affecting uncertainty, while also revealing it no longer has a deal with AI startup Perplexity. Snap's stock dropped about 4% following the earnings announcement, though the company noted it returned to user growth in Q1 after a decline in the previous quarter and is seeing early signs of improvement in its large advertiser business.