Conversational AI is coming to Snapchat The company’s stock is on the rise today.

Shares of Snap rose about 12% on Thursday after the owner of social media platform Snapchat posted better-than-expected results and guidance on user growth and spending.

The company also agreed to a stock buyback and struck a deal to provide conversational artificial intelligence (AI) search for Snapchat.

The latest bit of news is likely a big reason why stocks are higher today. Snap (SNAP) is teaming up with AI-powered reply engine Perplexity to give Snapchat users “a new way to ask questions, explore topics that interest them, and learn about the world,” the company said, saying the Perplexity system will be integrated into Snapchat starting early next year.

Snap said the Perplexity integration “represents a first step in Snap’s efforts to make Snapchat a platform where leading AI companies can connect with their global community in creative and trusted ways.” Snap said Perplexity will pay $400 million in a combination of cash and stock over one year.

Snap reported a third-quarter loss of 6 cents per share, better than the 12 cents per share loss that analysts surveyed by Visible Alpha were looking for. Revenue rose 10% to $1.51 billion, also above expectations. The company’s average daily active users rose 8% to 477 million, and average revenue per user rose 2% to $3.16. Advertising revenue rose 5% to $1.32 billion. All of those estimates topped the mark as well.

The company expects revenues for the current quarter to range between $1.68 billion and $1.71 billion, while Visible Alpha’s forecast is $1.69 billion.

Snap said its board of directors approved a buyback plan of up to half a billion dollars, the goal of which is to offset some of the dilution associated with its compensation practices.

Snap shares have traded mostly in negative territory throughout 2025, and despite today’s gains, they remain down 20% for the year.