Snap lost a 400 million dollar AI deal, 20 million dollars a month to the Iran war, and 24 per cent of its stock price. The AR glasses had better work.
Snap's Q1 revenue grew 12% to $1.53 billion, but its stock fell 4% after disclosing a $20-25 million loss in ad revenue due to the Iran war and ending its $400 million AI partnership with Perplexity. Snap's stock has fallen 24% this year to $6.11.
Snap reported Q1 revenue of $1.53 billion, up 12% from the previous year. The company's adjusted EBITDA more than doubled to $233 million, and free cash flow nearly tripled to $286 million. However, Snap's stock fell 4% after the company disclosed that the Iran war cost it $20-25 million in ad revenue in March and confirmed it ended its $400 million AI partnership with Perplexity. Snap is cutting 16% of its workforce while protecting its AR glasses subsidiary. The company's advertising revenue grew 3%, lagging behind Meta and Alphabet, which have invested heavily in AI-powered ad tools. Snap's stock has fallen 24% this year to $6.11.
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