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Snap’s Spectacles business isn’t a big business

Probably around 60,000 pairs last quarter.

Sherri Hill - Backstage - February 2017 - New York Fashion Week Astrid Stawiarz/Getty Images for Sherri Hill

How many pairs of Spectacles is Snap selling? The company didn’t break out the exact size of its camcorder glasses business in its first-ever earnings report today, but it’s small.

On Snap’s earnings call, CFO Drew Vollero said the company generated $8.3 million of “other” revenue during the first quarter, “primarily driven by Spectacles.” Assuming an average price of $130, that represents about 60,000 pairs of Spectacles during the quarter.

For context, Snap reported $150 million in total first-quarter revenue — mostly advertising — implying that “other” represents a little more than 5 percent of its business.

This is not unexpected. In Snap’s IPO prospectus, it said Spectacles have “not generated significant revenue for us.” And the company repeatedly messaged that this was an experiment.

Still, Snap defines itself as “a camera company,” and Spectacles got a lot of attention for the company over the holidays, though it seems to have burned off. We expect more hardware projects ahead, even if they don’t drive huge sales.

Snap CEO Evan Spiegel, asked by an analyst about the company’s hardware strategy, including AR and VR, said as much on the call.

“Our approach when we’re exploring new technology is to usually work on it ourselves,” Spiegel said.

Snapchat likes that strategy, he said, because it’s a good way to make something quickly and learn from it, citing more than five million Snaps created on Spectacles to date.

“We’re going to keep experimenting there, and at some point, obviously, as we’ve shown with our other products, we like being a good partner, and I think that’s always an interesting avenue to explore.”


This article originally appeared on Recode.net.

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