Snap no longer has a deal with Perplexity, the company revealed Wednesday as part of its quarterly earnings report. The deal, announced last November, would have seen the Perplexity AI search engine integrated directly into Snapchat. Perplexity is set to pay Snap $400 million in cash and stock over one year as part of the deal.
Snap said the two companies “amicably ended the relationship in the first quarter” and that its sales guidance “does not assume any contribution from Perplexity.” When Snap announced the deal as part of its third-quarter earnings last year, it said it expected revenue from the partnership to start contributing to its financials in 2026.
The deal was supposed to see Perplexity integrated into Snapchat’s ‘chat’ interface, allowing users to ask questions and receive chat answers directly within the app. Although the integration was tested with select users, it was never fully rolled out.
Snap said in February that the two companies “have not yet agreed on a path to broader rollout.”
Snap CEO Evan Spiegel said at the time of the initial announcement that the deal reflects the company’s vision of using artificial intelligence to enhance discovery on Snapchat, and that Snap looks forward to “collaborating with more innovative partners in the future.”
Perplexity did not immediately respond to TechCrunch’s request for comment.
Snap revealed on Wednesday that the number of global daily active users (DAU) rose 5% year over year to 483 million, while the number of monthly active users (MAU) also increased 5% to 965 million. The company attributed this growth to new features across the app, including Snap Map and Lenses AR filters.
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“In the first quarter, we returned to growth in daily active users, accelerated revenue growth, expanded margins, and generated strong free cash flow,” Spiegel said in a press release. “We continue to focus on disciplined execution as we invest in specifications and our long-term opportunity in smart glasses and look forward to sharing more at AWE on June 16.”
Snap said in April that it would lay off nearly 16% of its global workforce, affecting about 1,000 full-time employees, citing advances in artificial intelligence behind the cuts.
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