Highlights:
- Snap had acquired Berlin-based Fit Analytics, an AI-based fitting technology startup.
- A 10-Q filing from Snap has now placed a price tag on that deal.
- Snap paid a total of $124.4 million, covering technology, IP, customer relationships and payouts to the team.
- The flagship app Snapchat now has 280 million daily active users.
Introduction:
It gives the company another revenue stream at a time when Apple is introducing changes that might well affect how advertising can run and be monetized in the future. (The company most recently posted average revenues per user of $2.74, a figure Wall Street will be hoping will grow, not shrink.) It also plays into the demographics that Snapchat targets, where younger consumers are using social media apps to discover, share and shop for goods.
Snap paid a total of $124.4 million, covering technology, IP, customer relationships and payouts to the team.
Snap had acquired Berlin-based Fit Analytics, an AI-based fitting technology startup, as part of a wider push into e-commerce services, specifically to gain technology that can help prospective online shoppers get a better sense of how a particular item or size would fit them. A 10-Q filing from Snap today has now put a price tag on that deal.
Snap paid a total of $124.4 million, covering technology, IP, customer relationships and payouts to the team. The filing also noted that Snap spent a total of $204.5 million on acquisitions in 2020, but did not break them out.
The news comes ahead of Snap — whose flagship app Snapchat now has 280 million daily active users — preparing for its Snap Partner Conference in May. Sources say the company plans to announce, among other news, deeper commerce features for Snapchat.
Specifically tools to make it easier for Snapchat users to interact with and buy items that appear in the app, either in ads or more organically in content shared by other users.
While the exact details of those commerce tools, and the timing of when they might come online, are not yet known, Snap has hardly kept its interest in commerce a secret.
Snap is advertising for a variety of engineering, marketing and product roles in commerce.
Snap has been hiring for roles to support its commerce efforts. Currently it’s advertising for a variety of engineering, marketing and product roles in commerce, to, in the words of one of the listings, for a Product Manager, “develop and launch shopping experiences and services that make shopping fun for Snapchatters and drive results for brands.” The listings also include a role specifically to work on Snapchat-based e-commerce efforts for direct-to-consumer (D2C) businesses.
And it has been making other recent acquisitions in addition to Fit Analytics that also line up with that.
They have included Screenshot, an app that describes itself as “the first AI-back style lens,”. This app can identify shoppable items in photos. It can build a custom catalog of similar products that you can buy. (akin to “shop the look” features that you will have come across in fashion media). And it’s also acquired Ariel AI, which has built technology to quickly render people in 3D. It is the kind of technology that can be used in a diverse set of applications. These applications include everything from games to virtual try-ons of clothing, makeup or accessories.
Snap confirmed the Ariel acquisition to CNBC in January. The Screenshot deal was first reported earlier this month by The Information. But Snap has declined to comment on it. Although, we have found people who worked at the startup now working at Snap.
Both acquisitions closed in 2020, according to reports. This means that they came out of that year’s $204.5 million acquisition run. (Snap also noted a smaller acquisition, for $7.6 million, in the most recent quarter. But it did not disclose any further details.)
Even before all this, Snap had been making smaller efforts and tests in commerce going back years. Although none of them have tipped into mainstream efforts.
