Snapchat owner Snap handily beat Wall Street expectations in Q3, and announced a surprise AI deal: a $400 million agreement with Perplexity that will integrate its conversational search into the app.

Snap said that it now reaches 943 million monthly active users, up 7 percent year over year, as the company closes in on the billion user mark. Revenue grew 10 percent to $1.51 billion, with $182 million of Adjusted EBITDA and $93 million of free cash flow. The company reported a net loss of $104 million, a substantial improvement from the same quarter a year earlier.

As for that Perplexity deal: The AI company will pay $400 million in a mix of cash and stock, and Perplexity will begin integrations early next year, with the company teasing more deals: “This is the first step in our effo

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