In the S-1 filing for its recent blockbuster IPO, Snap, the company behind Snapchat, referred to itself as a "camera company".
Its first camera product, the "Spectacles", is a pair of brightly colored glasses with an embedded camera that records 10-second videos and uploads them to Snapchat.
Spectacles were initially given to celebrities and sold through "bots" - vending machines positioned in locations not advertised ahead of time. Then, on February 20th, spectacles became available to purchase online.
Using our panel of over 3 million credit and debit cards, we looked at sales in the month following general online availability to measure traction in the market:
Looking at daily sales as a percentage of sales-to-date, more than half of all Spectacles revenue came within the first three days from the start of online sales, so while early adopter demand was high, the rest of us haven't exactly been banging down the door to buy Spectacles.
To put these numbers in perspective, we decided to compare Spectacles to Tinder, a company targeting a similar demographic and with, as it turns out, surprisingly comparable revenue. As the chart below shows, Spectacles brought in almost an identical amount of revenue in their first month as Tinder did during the same time range, with about 13% of paying Tinder users also buying Spectacles.
Tinder is a single division within IAC, a $5 billion company, while Snap is currently valued at about 5 times that.
So...is Spectacles adoption just getting started or have they already peaked?
Learn more about consumer spending analytics with TXN.