Perplexity ARR Hits $200M

Perplexity, the AI-powered “answer engine” that combines web search with conversational interfaces and LLMs, is approaching $200 million in annual recurring revenue (ARR) as of mid-2025.  Earlier in 2025 it had surpassed $150 million ARR, up sharply from around $35 million a year prior. 

Perplexity’s core product addresses the need for real-time, source-attributed answers to complex user queries, offering a freemium model with paid tiers for prosumers and enterprise customers.

Its monetization comes from subscriptions (e.g. Pro and Enterprise plans), contextual advertising, inline commerce, and enterprise seats. The product helps users search more effectively—especially for longer queries or research-style questions—by combining the strength of large language models with web data and specialized tools. 

The company has raked in about $1.5 billion in total funding to date, and was recently valued at $20 billion following a $200 million funding round.  It serves ~30 million monthly users and handles hundreds of millions of queries each month (780 million queries in May 2025), demonstrating strong usage growth and a ramp in revenue.