May 6 - Snap said on Wednesday that first-quarter revenue rose 12% to $1.53 billion, supported by steady advertiser demand, and that its daily active user base returned to growth, driven primarily by regions outside North America and Europe.
The Snapchat parent, operating in a crowded social media landscape alongside large competitors, has been augmenting its ad-driven model with subscription offerings to diversify revenue. The company disclosed that its Snapchat+ subscription count exceeded 25 million as of February.
Snap also reported that it and artificial intelligence start-up Perplexity "amicably" ended a previously announced $400 million deal during the first quarter, roughly six months after the agreement was made public. That integration had been intended to surface verifiable answers to user queries inside the Snapchat application.
For the quarter, Snap said it had 483 million daily active users, an increase of 9 million from the prior quarter. The company noted, however, that daily active users in its largest market, North America, declined. Revenue growth in North America decelerated to 2% in the quarter.
Snap provided second-quarter revenue guidance in the range of $1.52 billion to $1.55 billion; the mid-point of that outlook aligns closely with outside estimates of $1.54 billion.
On profitability metrics, adjusted earnings before interest, taxes, depreciation and amortization stood at $233.3 million, above analyst expectations of $205.9 million. The company attributed the outperformance in part to improved operational efficiencies.
The results follow a round of workforce reductions announced roughly a month earlier, in which Snap said it would cut about 1,000 roles - representing 16% of its full-time staff - and close more than 300 open positions. That restructuring came after pressure from investor Irenic Capital Management to optimize Snap's portfolio and lift performance.
What this means - Snap's headline revenue and DAU figures indicate stabilization in user engagement outside its largest developed markets and suggest subscriptions are becoming a more material component of monetization. At the same time, slower growth in North America and the operational impact of the company's restructuring underscore ongoing challenges in its primary advertising market.