Snap Inc. just won a sizeable deal from Perplexity. Specifically, they signed a partnership agreement to embed Perplexity’s state-of-the-art AI-powered internet search engine directly into the Snapchat app. Furthering this partnership will help Snapchat’s massive user base, which just crossed over 940 million MAUs, have a more enjoyable experience on the platform.
As part of this agreement, Snapchat users will benefit from Perplexity’s AI capabilities when interacting with the company’s My AI chatbot. Users can ask any questions they want, and get immediate responses fueled by Perplexity’s advanced artificial intelligence platform. We can’t wait to bring this integration into the world in early 2024! End users will appreciate a more dynamic and educational experience inside the app.
Snap Inc. published its Q3 earnings today, showing a 10% year-over-year revenue increase to $1.51 billion. The carrier narrowed its losses to $104 million, down substantially from $153 million in 2022. This billion in improvement is an incredible testament to its growing financial health. We believe that the integration of Perplexity’s search technology will significantly increase user engagement and retention.
With Snapchat+ subscribing over 17 million users, that’s rapid growth at its finest. Through this partnership, we can accelerate that growth significantly by adding even more thrilling new features. That last piece is important — Snap won’t begin recognizing revenue from the Perplexity deal until 2026. Still, the upside from greater engagement would put it on a more favorable revenue trajectory overall.
Snap brings smart strategy with Perplexity’s GenAI search engine. This recent change is an attempt to provide increasingly novel features that hook and compel users’ attention. By using the most advanced AI technology, Snap sets itself up to get ahead of the curve in the ever-changing world of social media.