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.
TL;DR
Snap’s Q1 revenue grew 12 per cent to 1.53 billion dollars but the stock fell four per cent after the company disclosed that the Iran war cost it 20 to 25 million dollars in advertising revenue in March alone and confirmed it has ended its 400 million dollar AI partnership with Perplexity. The company is cutting 16 per cent of its workforce while protecting its AR glasses subsidiary.
Snap reported first-quarter earnings on Tuesdaythat should have been unremarkable: revenue up 12 per cent to 1.53 billion dollars, adjusted EBITDA more than doubled to 233 million dollars, free cash flow nearly tripled to 286 million dollars. The stock fell four per cent. The reason was not in the numbers Snap reported but in the numbers it projected and the partnerships it lost. Second-quarter revenue guidance of 1.52 to 1.55 billion dollars was in line with analysts’ expectations, which on...
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