On November 8, 2023, Warby Parker Inc (WRBY, Financial) released its third-quarter earnings, showcasing resilience and strategic growth in a challenging economic landscape. The company, renowned for its direct-to-consumer eyewear, reported a notable increase in net revenue, which rose by 14.2% year-over-year to $169.8 million. This growth was propelled by the opening of 11 new stores, successful product launches, and a robust performance in the contacts segment.
Financial Performance Overview
Warby Parker Inc (WRBY, Financial) demonstrated a solid financial performance in Q3 2023, with a significant increase in Average Revenue per Customer, which went up by 10.0% to $284. The company's active customer base also expanded by 1.8% to 2.30 million. Gross profit saw a 9.8% increase to $92.7 million, although gross margin slightly declined to 54.6% from 56.7% in the previous year, primarily due to the lower margins on contact lenses and increased costs associated with optometrist services.
Selling, general, and administrative expenses (SG&A) were $112.5 million, representing 66.2% of revenue, a decrease from 72.6% in the prior year. This leverage in SG&A was mainly attributed to reduced stock-based compensation costs and adjustments to the company's cost structure. The GAAP net loss showed an improvement of $6.4 million to $17.4 million, primarily due to the revenue increase.
Balance Sheet and Future Outlook
As of September 30, 2023, Warby Parker Inc (WRBY, Financial) had a strong cash and cash equivalents position of $216.0 million. Looking ahead, the company has revised its full-year 2023 guidance, now expecting net revenue between $666 to $669 million, which would represent an approximate 11.5% growth compared to the full year 2022. Adjusted EBITDA is projected to be around $52.7 million, with an adjusted EBITDA margin of 7.9%. The company is on track to open 40 new stores within the year.
While both our top and bottom line exceeded our prior outlook for the third quarter, we are cognizant of headwinds facing the consumer in the current macro environment," said Chief Financial Officer Steve Miller. "Given our outperformance year-to-date, we are raising our full year revenue guidance and maintaining a disciplined approach to spend."
Warby Parker Inc (WRBY, Financial) remains committed to its mission of providing affordable, stylish eyewear while also making a positive impact through its Buy a Pair, Give a Pair program, which has distributed over 15 million pairs of glasses to those in need.
Investor and Analyst Perspectives
Investors and analysts may view Warby Parker Inc (WRBY, Financial)'s ability to grow revenue and revise its full-year outlook upwards as a positive sign of the company's adaptability and potential for long-term, profitable growth. The company's strategic store expansions and product innovations, coupled with its philanthropic efforts, continue to resonate with consumers and differentiate Warby Parker in the competitive eyewear market.
For detailed financial tables and a reconciliation of GAAP to non-GAAP measures, interested parties can find supplementary information in the earnings release. Warby Parker Inc (WRBY, Financial) will also host a conference call and webcast to discuss the third quarter 2023 results and provide further insights into the fourth quarter and full year 2023 outlook.
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Explore the complete 8-K earnings release (here) from Warby Parker Inc for further details.
