Rumors that Snap Inc. grossly overestimated demand for its camera-equipped glasses were seemingly on point.
In its third quarter earnings report issued Tuesday, Snap wrote off $39.9 million in charges related to excess inventory reserves and purchase commitment cancellations.
In other words, Snap is sitting on a lot of Spectacles that it can’t sell.
The company’s issues extend beyond unsold inventory.
For the three-month period ending September 30, Snap generated $207.9 million in revenue.
Wall Street was expecting around $237 million.