Warby Parker Announces Second Quarter 2024 Results
Warby Parker (NYSE: WRBY) reported strong Q2 2024 results, with net revenue increasing 13.3% year-over-year to $188.2 million. The company saw a 4.5% increase in Active Customers and an 8.8% rise in Average Revenue per Customer. Gross margin improved by 1.4 points to 56.0%, while Adjusted EBITDA Margin increased 1.9 points to 10.4%. Despite a GAAP net loss of $6.8 million, Warby Parker generated $31.2 million in operating cash flow and $14.0 million in Free Cash Flow. The company opened 11 net new stores, ending Q2 with 256 locations. Based on these results, Warby Parker raised its full-year 2024 outlook, projecting net revenue of $757 to $762 million and an Adjusted EBITDA of $72.5 million at the midpoint.
Warby Parker (NYSE: WRBY) ha riportato risultati solidi per il secondo trimestre del 2024, con un aumento del fatturato netto del 13,3% anno su anno, arrivando a 188,2 milioni di dollari. L'azienda ha registrato un aumento del 4,5% nei Clienti Attivi e un . Il margine lordo è migliorato di 1,4 punti, raggiungendo il 56,0%, mentre il Margine EBITDA Rettificato è aumentato di 1,9 punti, arrivando al 10,4%. Nonostante una perdita netta secondo i principi contabili GAAP di 6,8 milioni di dollari, Warby Parker ha generato 31,2 milioni di dollari di flusso di cassa operativo e 14,0 milioni di dollari di Flusso di Cassa Libero. L'azienda ha aperto 11 nuovi punti vendita, chiudendo il secondo trimestre con 256 sedi. Sulla base di questi risultati, Warby Parker ha elevato le previsioni per l'intero anno 2024, prevedendo un fatturato netto compreso tra 757 e 762 milioni di dollari e un EBITDA rettificato di 72,5 milioni di dollari al punto medio.
Warby Parker (NYSE: WRBY) reportó resultados sólidos para el segundo trimestre de 2024, con un aumento de ingresos netos del 13,3% interanual, alcanzando los 188,2 millones de dólares. La compañía vio un aumento del 4,5% en Clientes Activos y un aumento del 8,8% en Ingresos Promedio por Cliente. El margen bruto mejoró en 1,4 puntos, alcanzando el 56,0%, mientras que el Margen EBITDA Ajustado aumentó 1,9 puntos, llegando al 10,4%. A pesar de una pérdida neta de 6,8 millones de dólares según GAAP, Warby Parker generó 31,2 millones de dólares en flujo de caja operativo y 14,0 millones de dólares en Flujo de Caja Libre. La compañía abrió 11 nuevas tiendas, cerrando el segundo trimestre con 256 ubicaciones. Basado en estos resultados, Warby Parker elevó su pronóstico de todo el año 2024, proyectando ingresos netos entre 757 y 762 millones de dólares y un EBITDA ajustado de 72,5 millones de dólares en el punto medio.
Warby Parker (NYSE: WRBY)는 2024년 2분기 강력한 실적을 발표했으며, 연간 13.3% 증가한 1억 8820만 달러의 순매출을 기록했습니다. 회사는 활성 고객 수가 4.5% 증가하고 고객당 평균 매출이 8.8% 상승했다고 합니다. 총 마진은 1.4포인트 증가하여 56.0%에 도달했으며, 조정된 EBITDA 마진은 1.9포인트 올라 10.4%에 이르렀습니다. GAAP 기준으로 680만 달러의 순손실에도 불구하고, Warby Parker는 3,120만 달러의 운영 현금 흐름과 1,400만 달러의 자유 현금 흐름을 창출했습니다. 회사는 11개의 새로운 매장을 열어 2분기를 256개 위치로 마감했습니다. 이러한 결과를 기반으로 Warby Parker는 2024년 전체 전망을 상향 조정했으며, 순매출이 757~762백만 달러, 조정 EBITDA가 7250만 달러로 예상됩니다.
Warby Parker (NYSE: WRBY) a annoncé des résultats solides pour le deuxième trimestre 2024, avec une augmentation des revenus nets de 13,3 % d'une année sur l'autre pour atteindre 188,2 millions de dollars. L'entreprise a enregistré une augmentation de 4,5 % des Clients Actifs et une hausse de 8,8 % des Revenus Moyens par Client. La marge brute a progressé de 1,4 point pour atteindre 56,0 %, tandis que la Marge EBITDA Ajustée a augmenté de 1,9 point pour atteindre 10,4 %. Malgré une perte nette de 6,8 millions de dollars selon les normes GAAP, Warby Parker a généré un flux de trésorerie opérationnel de 31,2 millions de dollars et un Flux de Trésorerie Libre de 14,0 millions de dollars. L'entreprise a ouvert 11 nouveaux magasins, clôturant le deuxième trimestre avec 256 emplacements. Sur la base de ces résultats, Warby Parker a relevé ses prévisions pour l'ensemble de l'année 2024, projetant des revenus nets de 757 à 762 millions de dollars et un EBITDA ajusté de 72,5 millions de dollars en moyenne.
Warby Parker (NYSE: WRBY) hat im zweiten Quartal 2024 starke Ergebnisse veröffentlicht, mit einem Jahresumsatzanstieg von 13,3% auf 188,2 Millionen Dollar. Das Unternehmen verzeichnete einen 4,5%igen Anstieg aktiver Kunden und einen 8,8%igen Anstieg des Durchschnittsumsatzes pro Kunde. Die Bruttomarge verbesserte sich um 1,4 Punkte auf 56,0%, während die bereinigte EBITDA-Marge um 1,9 Punkte auf 10,4% stieg. Trotz eines Nettoverlusts von 6,8 Millionen Dollar gemäß GAAP erzielte Warby Parker einen operativen Cashflow von 31,2 Millionen Dollar und einen freien Cashflow von 14,0 Millionen Dollar. Das Unternehmen eröffnete 11 neue Filialen und schloss das zweite Quartal mit 256 Standorten ab. Basierend auf diesen Ergebnissen hob Warby Parker seine Prognose für das Gesamtjahr 2024 an und erwartet einen Nettoumsatz zwischen 757 und 762 Millionen Dollar sowie ein bereinigtes EBITDA von 72,5 Millionen Dollar im Durchschnitt.
- Net revenue increased 13.3% year-over-year to $188.2 million
- Active Customers grew by 4.5% to 2.39 million
- Average Revenue per Customer increased 8.8% to $302
- Gross margin improved by 1.4 points to 56.0%
- Adjusted EBITDA Margin increased 1.9 points to 10.4%
- Company raised full-year 2024 guidance
- Opened 11 net new stores, expanding retail presence
- GAAP net loss of $6.8 million in Q2 2024
- Increased SG&A expenses by $5.5 million compared to the prior year
Insights
Warby Parker's Q2 2024 results show strong momentum, with revenue up
However, the company still posted a GAAP net loss of
Warby Parker's Q2 performance demonstrates the strength of its omnichannel strategy. The company's continued store expansion, with 11 net new stores opened in Q2, brings the total to 256 locations. This brick-and-mortar growth, coupled with the highest e-commerce growth since Q1 2021, showcases a well-balanced approach to capturing market share.
The
Net revenue increased
Active Customers increased
“We’re proud of the progress we’re making on our core strategic initiatives to accelerate growth,” shared Co-Founder and Co-CEO Dave Gilboa. “In Q2, we drove our fourth consecutive quarter of active customer growth and our highest ecommerce growth since Q1‘21.”
“Our strong results demonstrate Team Warby’s ability to drive sustainable growth. Amidst strategic reinvestment in customer acquisition, store expansion, proprietary technology, and more, we’re still expanding the bottomline and delivering value for our stakeholders,” said Co-Founder and Co-CEO Neil Blumenthal.
Second Quarter 2024 Highlights
-
Net revenue increased
, or$22.1 million 13.3% , to , as compared to the prior year period.$188.2 million -
Gross margin increased 1.4 points to
56.0% , as compared to the prior year period. -
GAAP net loss of
.$6.8 million -
Adjusted EBITDA Margin(1) increased 1.9 points to
10.4% . -
Net cash provided by operating activities of
.$31.2 million -
Free Cash Flow(1) of
.$14.0 million - Opened 11 net new stores during the quarter, ending Q2 with 256 stores.
Second Quarter 2024 Year Over Year Financial Results
-
Net revenue increased
, or$22.1 million 13.3% , to .$188.2 million -
Active Customers increased
4.5% to 2.39 million, and Average Revenue per Customer increased8.8% to .$302 -
Gross profit increased
16.3% to .$105.4 million -
Gross margin was
56.0% compared to54.6% . The increase in gross margin was primarily driven by faster growth in glasses, lower outbound customer shipping costs as a percent of revenue, and efficiencies in our owned optical laboratories, partially offset by sales growth of contact lenses, and increased doctor salaries as the number of stores offering eye exams grew. -
Selling, general, and administrative expenses (“SG&A”) were
, up$114.3 million from the prior year, and represented$5.5 million 60.8% of revenue, down from65.5% in the prior year period. The primary drivers of growth in SG&A spend were investments in marketing, higher payroll-related costs from growth in our retail team associated with store expansion, and charitable donations, partially offset by reduced stock-based compensation costs. Adjusted SG&A(1) was , or$98.2 million 52.2% of revenue, compared to , or$86.8 million 52.2% of revenue in the prior year period. -
GAAP net loss improved
to$9.2 million , primarily as a result of the increase in revenue described above.$6.8 million -
Adjusted EBITDA(1) increased
to$5.4 million , and Adjusted EBITDA Margin(1) increased 1.9 points to$19.6 million 10.4% .
Balance Sheet Highlights
Warby Parker ended the second quarter of 2024 with
2024 Outlook
For the full year 2024, Warby Parker is raising its guidance as follows:
-
Net revenue of
to$757 , representing growth of approximately$762 million 13% to14% versus full year 2023. -
Adjusted EBITDA(1) of
at the midpoint of our revenue range, which equates to an Adjusted EBITDA Margin(1) of$72.5 million 9.5% . - On track to open 40 new stores this year.
“We’re very encouraged by our year-to-date performance,” said Chief Financial Officer Steve Miller. “We continue to demonstrate our ability to deliver on our twin pillars of growth and incremental profitability that underpin the success of the business.”
The guidance and forward-looking statements made in this press release and on our conference call are based on management's expectations as of the date of this press release.
(1) Please see the reconciliation of non-GAAP financial measures to the most comparable GAAP financial measure in the section titled “Non-GAAP Financial Measures” below.
Webcast and Conference Call
A conference call to discuss Warby Parker’s second quarter 2024 results, as well as third quarter and full year 2024 outlook, is scheduled for 8:00 a.m. ET on August 8, 2024. To participate, please dial 833-470-1428 from the
Forward-Looking Statements
This press release and the related conference call, webcast and presentation contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements may relate to, but are not limited to, expectations of future operating results or financial performance, including expectations regarding achieving profitability and growth in our e-commerce channel, delivering stakeholder value, growing market share, and our guidance for the quarter ending September 30, 2024 and year ending December 31, 2024; expectations regarding the number of new store openings during the year ending December 31, 2024; management’s plans, priorities, initiatives and strategies; and expectations regarding growth of our business. Forward-looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified. In some cases, you can identify forward-looking statements because they contain words such as “anticipate,” “believe,” “contemplate,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “potential,” “predict,” “project,” “should,” “target,” “toward,” “will,” or “would,” or the negative of these words or other similar terms or expressions. You should not put undue reliance on any forward-looking statements. Forward-looking statements should not be read as a guarantee of future performance or results and will not necessarily be accurate indications of the times at, or by, which such performance or results will be achieved, if at all.
Forward-looking statements are based on information available at the time those statements are made and are based on current expectations, estimates, forecasts, and projections as well as the beliefs and assumptions of management as of that time with respect to future events. These statements are subject to risks and uncertainties, many of which involve factors or circumstances that are beyond our control, that could cause actual performance or results to differ materially from those expressed in or suggested by the forward-looking statements. In light of these risks and uncertainties, the forward-looking events and circumstances discussed in this press release may not occur and actual results could differ materially from those anticipated or implied in the forward-looking statements. These risks and uncertainties include our ability to manage our future growth effectively; our expectations regarding cost of goods sold, gross margin, channel mix, customer mix, and selling, general, and administrative expenses; increases in component and shipping costs and changes in supply chain; our reliance on our information technology systems and enterprise resource planning systems for our business to effectively operate and safeguard confidential information; our ability to invest in and incorporate new technologies into our products and services; our ability to engage our existing customers and obtain new customers; our ability to expand in-network access with insurance providers; planned new retail stores in 2024 and going forward; an overall decline in the health of the economy and other factors impacting consumer spending, such as recessionary conditions, inflation, government instability, and geopolitical unrest; our ability to compete successfully; our ability to manage our inventory balances and shrinkage; the growth of our brand awareness; our ability to recruit and retain optometrists, opticians, and other vision care professionals; the spread of new infectious diseases; the effects of seasonal trends on our results of operations; our ability to stay in compliance with extensive laws and regulations that apply to our business and operations; our ability to adequately maintain and protect our intellectual property and proprietary rights; our reliance on third parties for our products, operation and infrastructure; our duties related to being a public benefit corporation; the ability of our Co-Founders and Co-CEOs to exercise significant influence over all matters submitted to stockholders for approval; the effect of our multi-class structure on the trading price of our Class A common stock; and the increased expenses associated with being a public company. Additional information regarding these and other risks and uncertainties that could cause actual results to differ materially from the Company's expectations is included in our most recent reports filed with the SEC on Form 10-K and Form 10-Q. Except as required by law, we do not undertake any obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future developments, or otherwise.
Additional information regarding these and other factors that could affect the Company’s results is included in the Company’s SEC filings, which may be obtained by visiting the SEC's website at www.sec.gov. Information contained on, or that is referenced or can be accessed through, our website does not constitute part of this document and inclusions of any website addresses herein are inactive textual references only.
Glossary
Active Customers is defined as unique customer accounts that have made at least one purchase in the preceding 12-month period.
Average Revenue per Customer is defined as the sum of the total net revenues in the preceding 12-month period divided by the current period Active Customers.
Non-GAAP Financial Measures
We use Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Cost of Goods Sold (“Adjusted COGS”), Adjusted Gross Margin, Adjusted Gross Profit, Adjusted Selling, General, and Administrative Expenses (“Adjusted SG&A”), and Free Cash Flow as important indicators of our operating performance. Collectively, we refer to these non-GAAP financial measures as our “Non-GAAP Measures.” The Non-GAAP Measures, when taken collectively with our GAAP results, may be helpful to investors because they provide consistency and comparability with past financial performance and assist in comparisons with other companies, some of which use similar non-GAAP financial information to supplement their GAAP results.
Adjusted EBITDA is defined as net income (loss) before interest and other income, taxes, and depreciation and amortization as further adjusted for asset impairment costs, stock-based compensation expense and related employer payroll taxes, amortization of cloud-based software implementation costs, non-cash charitable donations, and non-recurring costs such as restructuring costs, major system implementation costs, charges for certain legal matters, and transaction costs. Adjusted EBITDA Margin is defined as Adjusted EBITDA divided by net revenue.
Adjusted COGS is defined as cost of goods sold adjusted for stock-based compensation expense and related employer payroll taxes.
Adjusted Gross Profit is defined as net revenue minus Adjusted COGS. Adjusted Gross Margin is defined as Adjusted Gross Profit divided by net revenue.
Adjusted SG&A is defined as SG&A adjusted for stock-based compensation expense and related employer payroll taxes, non-cash charitable donations, and non-recurring costs such as restructuring costs, major system implementation costs, charges for certain legal matters, and transaction costs.
Free Cash Flow is defined as net cash provided by operating activities minus purchases of property and equipment.
The Non-GAAP Measures are presented for supplemental informational purposes only. A reconciliation of historical GAAP to Non-GAAP financial information is included under “Selected Financial Information” below.
We have not reconciled our Adjusted EBITDA Margin guidance to GAAP net income (loss) margin, or net margin, or Adjusted EBITDA guidance to GAAP net income (loss) because we do not provide guidance for GAAP net margin or GAAP net income (loss) due to the uncertainty and potential variability of stock-based compensation and taxes, which are reconciling items between GAAP net margin and Adjusted EBITDA Margin and GAAP net income (loss) and Adjusted EBITDA, respectively. Because such items cannot be reasonably provided without unreasonable efforts, we are unable to provide a reconciliation of the Adjusted EBITDA Margin guidance to GAAP net margin and Adjusted EBITDA guidance to GAAP net income (loss). However, such items could have a significant impact on GAAP net margin and GAAP net income (loss).
About Warby Parker
Warby Parker (NYSE: WRBY) was founded in 2010 with a mission to inspire and impact the world with vision, purpose, and style–without charging a premium for it. Headquartered in
Warby Parker aims to demonstrate that businesses can scale, do well, and do good in the world. Ultimately, the Company believes in vision for all, which is why for every pair of glasses or sunglasses sold, it distributes a pair to someone in need through its Buy a Pair, Give a Pair program. To date, Warby Parker has worked alongside its nonprofit partners to distribute more than 15 million glasses to people in need.
Selected Financial Information
Warby Parker Inc. and Subsidiaries
|
|||||||
|
June 30,
|
|
December
|
||||
Assets |
|
|
|
||||
Current assets: |
|
|
|
||||
Cash and cash equivalents |
$ |
237,958 |
|
|
$ |
216,894 |
|
Accounts receivable, net |
|
1,209 |
|
|
|
1,779 |
|
Inventory |
|
53,345 |
|
|
|
62,234 |
|
Prepaid expenses and other current assets |
|
16,122 |
|
|
|
17,712 |
|
Total current assets |
|
308,634 |
|
|
|
298,619 |
|
|
|
|
|
||||
Property and equipment, net |
|
162,736 |
|
|
|
152,332 |
|
Right-of-use lease assets |
|
138,138 |
|
|
|
122,305 |
|
Other assets |
|
8,698 |
|
|
|
7,056 |
|
Total assets |
$ |
618,206 |
|
|
$ |
580,312 |
|
|
|
|
|
||||
Liabilities and Stockholders’ Equity |
|
|
|
||||
Current liabilities: |
|
|
|
||||
Accounts payable |
$ |
24,685 |
|
|
$ |
22,456 |
|
Accrued expenses |
|
47,736 |
|
|
|
46,320 |
|
Deferred revenue |
|
21,052 |
|
|
|
31,617 |
|
Current lease liabilities |
|
25,559 |
|
|
|
24,286 |
|
Other current liabilities |
|
2,002 |
|
|
|
2,411 |
|
Total current liabilities |
|
121,034 |
|
|
|
127,090 |
|
|
|
|
|
||||
Non-current lease liabilities |
|
166,686 |
|
|
|
150,171 |
|
Other liabilities |
|
1,096 |
|
|
|
1,264 |
|
Total liabilities |
|
288,816 |
|
|
|
278,525 |
|
Commitments and contingencies |
|
|
|
||||
Stockholders’ equity: |
|
|
|
||||
Common stock, |
|
12 |
|
|
|
12 |
|
Additional paid-in capital |
|
1,007,288 |
|
|
|
970,135 |
|
Accumulated deficit |
|
(676,272 |
) |
|
|
(666,831 |
) |
Accumulated other comprehensive loss |
|
(1,638 |
) |
|
|
(1,529 |
) |
Total stockholders’ equity |
|
329,390 |
|
|
|
301,787 |
|
Total liabilities and stockholders’ equity |
$ |
618,206 |
|
|
$ |
580,312 |
|
Warby Parker Inc. and Subsidiaries
|
|||||||||||||||
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Net revenue |
$ |
188,222 |
|
|
$ |
166,093 |
|
|
$ |
388,225 |
|
|
$ |
338,061 |
|
Cost of goods sold |
|
82,840 |
|
|
|
75,458 |
|
|
|
169,384 |
|
|
|
152,635 |
|
Gross profit |
|
105,382 |
|
|
|
90,635 |
|
|
|
218,841 |
|
|
|
185,426 |
|
|
|
|
|
|
|
|
|
||||||||
Selling, general, and administrative expenses |
|
114,338 |
|
|
|
108,865 |
|
|
|
232,924 |
|
|
|
216,086 |
|
Loss from operations |
|
(8,956 |
) |
|
|
(18,230 |
) |
|
|
(14,083 |
) |
|
|
(30,660 |
) |
|
|
|
|
|
|
|
|
||||||||
Interest and other income, net |
|
2,567 |
|
|
|
2,281 |
|
|
|
5,123 |
|
|
|
4,160 |
|
|
|
|
|
|
|
|
|
||||||||
Loss before income taxes |
|
(6,389 |
) |
|
|
(15,949 |
) |
|
|
(8,960 |
) |
|
|
(26,500 |
) |
Provision for income taxes |
|
373 |
|
|
|
(24 |
) |
|
|
481 |
|
|
|
237 |
|
Net loss |
$ |
(6,762 |
) |
|
$ |
(15,925 |
) |
|
$ |
(9,441 |
) |
|
$ |
(26,737 |
) |
|
|
|
|
|
|
|
|
||||||||
Net loss per share attributable to common stockholders, basic and diluted |
$ |
(0.06 |
) |
|
$ |
(0.14 |
) |
|
$ |
(0.08 |
) |
|
$ |
(0.23 |
) |
Weighted average shares used in computing net loss per share attributable to common stockholders, basic and diluted |
|
120,086,495 |
|
|
|
116,792,223 |
|
|
|
119,615,015 |
|
|
|
116,477,573 |
|
Warby Parker Inc. and Subsidiaries
|
|||||||
|
Six Months Ended June 30, |
||||||
|
|
2024 |
|
|
|
2023 |
|
Cash flows from operating activities |
|
|
|
||||
Net loss |
$ |
(9,441 |
) |
|
$ |
(26,737 |
) |
Adjustments to reconcile net loss to net cash provided by operating activities: |
|
|
|
||||
Depreciation and amortization |
|
21,704 |
|
|
|
18,424 |
|
Stock-based compensation |
|
27,879 |
|
|
|
37,792 |
|
Non-cash charitable contribution |
|
2,196 |
|
|
|
600 |
|
Asset impairment charges |
|
421 |
|
|
|
650 |
|
Amortization of cloud-based software implementation costs |
|
2,008 |
|
|
|
826 |
|
Change in operating assets and liabilities: |
|
|
|
||||
Accounts receivable, net |
|
571 |
|
|
|
259 |
|
Inventory |
|
8,888 |
|
|
|
9,048 |
|
Prepaid expenses and other assets |
|
(61 |
) |
|
|
1,301 |
|
Accounts payable |
|
1,384 |
|
|
|
2,148 |
|
Accrued expenses |
|
5,187 |
|
|
|
(11,619 |
) |
Deferred revenue |
|
(10,565 |
) |
|
|
(6,684 |
) |
Other current liabilities |
|
(409 |
) |
|
|
(21 |
) |
Right-of-use lease assets and current and non-current lease liabilities |
|
1,956 |
|
|
|
1,614 |
|
Other liabilities |
|
(168 |
) |
|
|
(206 |
) |
Net cash provided by operating activities |
|
51,550 |
|
|
|
27,395 |
|
Cash flows from investing activities |
|
|
|
||||
Purchases of property and equipment |
|
(32,088 |
) |
|
|
(24,610 |
) |
Investment in optical equipment company |
|
(2,000 |
) |
|
|
— |
|
Net cash used in investing activities |
|
(34,088 |
) |
|
|
(24,610 |
) |
Cash flows from financing activities |
|
|
|
||||
Proceeds from stock option exercises |
|
2,639 |
|
|
|
843 |
|
Proceeds from shares issued in connection with employee stock purchase plan |
|
1,068 |
|
|
|
1,124 |
|
Net cash provided by financing activities |
|
3,707 |
|
|
|
1,967 |
|
Effect of exchange rates on cash |
|
(105 |
) |
|
|
(681 |
) |
Net change in cash and cash equivalents |
|
21,064 |
|
|
|
4,071 |
|
Cash and cash equivalents, beginning of period |
|
216,894 |
|
|
|
208,585 |
|
Cash and cash equivalents, end of period |
$ |
237,958 |
|
|
$ |
212,656 |
|
Supplemental disclosures |
|
|
|
||||
Cash paid for income taxes |
$ |
345 |
|
|
$ |
326 |
|
Cash paid for interest |
|
92 |
|
|
|
110 |
|
Cash paid for amounts included in the measurement of lease liabilities |
|
21,201 |
|
|
|
17,530 |
|
Non-cash investing and financing activities: |
|
|
|
||||
Purchases of property and equipment included in accounts payable and accrued expenses |
$ |
4,089 |
|
|
$ |
3,351 |
|
Warby Parker Inc. and Subsidiaries
Reconciliation of GAAP to Non-GAAP Measures (Unaudited)
The following table reconciles Adjusted EBITDA and Adjusted EBITDA Margin to the most directly comparable GAAP measure, which is net loss:
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
(unaudited, in thousands) |
|
(unaudited, in thousands) |
||||||||||||
Net loss |
$ |
(6,762 |
) |
|
$ |
(15,925 |
) |
|
$ |
(9,441 |
) |
|
$ |
(26,737 |
) |
Adjusted to exclude the following: |
|
|
|
|
|
|
|
||||||||
Interest and other income, net |
|
(2,567 |
) |
|
|
(2,281 |
) |
|
|
(5,123 |
) |
|
|
(4,160 |
) |
Provision for income taxes |
|
373 |
|
|
|
(24 |
) |
|
|
481 |
|
|
|
237 |
|
Depreciation and amortization expense |
|
11,121 |
|
|
|
9,284 |
|
|
|
21,704 |
|
|
|
18,424 |
|
Asset impairment charges |
|
22 |
|
|
|
255 |
|
|
|
421 |
|
|
|
650 |
|
Stock-based compensation expense(1) |
|
14,097 |
|
|
|
18,164 |
|
|
|
28,412 |
|
|
|
38,030 |
|
Non-cash charitable donation(2) |
|
2,196 |
|
|
|
600 |
|
|
|
2,196 |
|
|
|
600 |
|
Amortization of cloud-based software implementation costs(3) |
|
935 |
|
|
|
463 |
|
|
|
2,008 |
|
|
|
826 |
|
ERP implementation costs(4) |
|
— |
|
|
|
3,639 |
|
|
|
— |
|
|
|
4,042 |
|
Other costs(5) |
|
168 |
|
|
|
— |
|
|
|
1,303 |
|
|
|
— |
|
Adjusted EBITDA |
$ |
19,583 |
|
|
$ |
14,175 |
|
|
$ |
41,961 |
|
|
$ |
31,912 |
|
Adjusted EBITDA Margin |
|
10.4 |
% |
|
|
8.5 |
% |
|
|
10.8 |
% |
|
|
9.4 |
% |
(1) |
Represents expenses related to the Company’s equity-based compensation programs and related employer payroll taxes, which may vary significantly from period to period depending upon various factors including the timing, number, and the valuation of awards granted, and vesting of awards including the satisfaction of performance conditions, as well as the issuance of 48,486 Class A common stock to charitable donor advised funds in February 2024. For the three months ended June 30, 2024 and 2023, the amount includes |
|
(2) | Represents charitable expense recorded in connection with the donation of 178,572 shares of Class A common stock in May 2024 to the Warby Parker Impact Foundation and 56,938 shares of Class A common stock to charitable donor advised funds in June 2023. |
|
(3) | Represents the amortization of costs capitalized in connection with the implementation of cloud-based software. |
|
(4) | Represents internal and external non-capitalized costs related to the implementation of our new Enterprise Resource Planning (“ERP”) system. |
|
(5) | Represents other non-recurring costs, including charges for certain legal matters. |
|
Warby Parker Inc. and Subsidiaries
Reconciliation of GAAP to Non-GAAP Measures (Unaudited)
The following table presents our non-GAAP, or adjusted, financial measures for the periods presented as a percentage of revenue. Each cost and operating expense is adjusted for stock-based compensation expense and related employer payroll taxes, non-cash charitable donations, and non-recurring costs such as restructuring costs, major system implementation costs, charges for certain legal matters, and transaction costs.
|
Reported |
|
Adjusted |
|
Reported |
|
Adjusted |
||||||||||||||||||||||||
|
Three Months Ended
|
|
Three Months Ended
|
|
Six Months Ended
|
|
Six Months Ended
|
||||||||||||||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
(unaudited, in thousands) |
|
(unaudited, in thousands) |
|
(unaudited, in thousands) |
|
(unaudited, in thousands) |
||||||||||||||||||||||||
Cost of goods sold |
$ |
82,840 |
|
|
$ |
75,458 |
|
|
$ |
82,555 |
|
|
$ |
75,162 |
|
|
$ |
169,384 |
|
|
$ |
152,635 |
|
|
$ |
168,855 |
|
|
$ |
152,141 |
|
% of Revenue |
|
44.0 |
% |
|
|
45.4 |
% |
|
|
43.9 |
% |
|
|
45.3 |
% |
|
|
43.6 |
% |
|
|
45.2 |
% |
|
|
43.5 |
% |
|
|
45.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Gross profit |
$ |
105,382 |
|
|
$ |
90,635 |
|
|
$ |
105,667 |
|
|
$ |
90,931 |
|
|
$ |
218,841 |
|
|
$ |
185,426 |
|
|
$ |
219,370 |
|
|
$ |
185,920 |
|
% of Revenue |
|
56.0 |
% |
|
|
54.6 |
% |
|
|
56.1 |
% |
|
|
54.7 |
% |
|
|
56.4 |
% |
|
|
54.8 |
% |
|
|
56.5 |
% |
|
|
55.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Selling, general, and administrative expenses |
$ |
114,338 |
|
|
$ |
108,865 |
|
|
$ |
98,162 |
|
|
$ |
86,758 |
|
|
$ |
232,924 |
|
|
$ |
216,086 |
|
|
$ |
201,542 |
|
|
$ |
173,908 |
|
% of Revenue |
|
60.8 |
% |
|
|
65.5 |
% |
|
|
52.2 |
% |
|
|
52.2 |
% |
|
|
60.0 |
% |
|
|
63.9 |
% |
|
|
51.9 |
% |
|
|
51.4 |
% |
Warby Parker Inc. and Subsidiaries
Reconciliation of GAAP to Non-GAAP Measures (Unaudited)
The following table reflects a reconciliation of each non-GAAP, or adjusted, financial measure to its most directly comparable financial measure prepared in accordance with GAAP:
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
(unaudited, in thousands) |
|
(unaudited, in thousands) |
||||||||||||
Cost of goods sold |
$ |
82,840 |
|
|
$ |
75,458 |
|
|
$ |
169,384 |
|
|
$ |
152,635 |
|
Adjusted to exclude the following: |
|
|
|
|
|
|
|
||||||||
Stock-based compensation expense(1) |
|
285 |
|
|
|
296 |
|
|
|
529 |
|
|
|
494 |
|
Adjusted Cost of Goods Sold |
$ |
82,555 |
|
|
$ |
75,162 |
|
|
$ |
168,855 |
|
|
$ |
152,141 |
|
|
|
|
|
|
|
|
|
||||||||
Gross profit |
$ |
105,382 |
|
|
$ |
90,635 |
|
|
$ |
218,841 |
|
|
$ |
185,426 |
|
Adjusted to exclude the following: |
|
|
|
|
|
|
|
||||||||
Stock-based compensation expense(1) |
|
285 |
|
|
|
296 |
|
|
|
529 |
|
|
|
494 |
|
Adjusted Gross Profit |
$ |
105,667 |
|
|
$ |
90,931 |
|
|
$ |
219,370 |
|
|
$ |
185,920 |
|
|
|
|
|
|
|
|
|
||||||||
Selling, general, and administrative expenses |
$ |
114,338 |
|
|
$ |
108,865 |
|
|
$ |
232,924 |
|
|
$ |
216,086 |
|
Adjusted to exclude the following: |
|
|
|
|
|
|
|
||||||||
Stock-based compensation expense(1) |
|
13,812 |
|
|
|
17,868 |
|
|
|
27,883 |
|
|
|
37,536 |
|
Non-cash charitable donation(2) |
|
2,196 |
|
|
|
600 |
|
|
|
2,196 |
|
|
|
600 |
|
ERP implementation costs(3) |
|
— |
|
|
|
3,639 |
|
|
|
— |
|
|
|
4,042 |
|
Other costs(4) |
|
168 |
|
|
|
— |
|
|
|
1,303 |
|
|
|
— |
|
Adjusted Selling, General, and Administrative Expenses |
$ |
98,162 |
|
|
$ |
86,758 |
|
|
$ |
201,542 |
|
|
$ |
173,908 |
|
|
|
|
|
|
|
|
|
||||||||
Net cash provided by operating activities |
$ |
31,624 |
|
|
$ |
18,753 |
|
|
$ |
51,550 |
|
|
$ |
27,395 |
|
Purchases of property and equipment |
|
(17,651 |
) |
|
|
(12,225 |
) |
|
|
(32,088 |
) |
|
|
(24,610 |
) |
Free Cash Flow |
$ |
13,973 |
|
|
$ |
6,528 |
|
|
$ |
19,462 |
|
|
$ |
2,785 |
|
(1) |
Represents expenses related to the Company’s equity-based compensation programs and related employer payroll taxes, which may vary significantly from period to period depending upon various factors including the timing, number, and the valuation of awards granted, and vesting of awards including the satisfaction of performance conditions, as well as the issuance of 48,486 Class A common stock to charitable donor advised funds in February 2024. For the three months ended June 30, 2024 and 2023, the amount includes |
|
(2) | Represents charitable expense recorded in connection with the donation of 178,572 shares of Class A common stock in May 2024 to the Warby Parker Impact Foundation and 56,938 shares of Class A common stock to charitable donor advised funds in June 2023. |
|
(3) | Represents internal and external non-capitalized costs related to the implementation of our new ERP system. |
|
(4) | Represents other non-recurring costs, including charges for certain legal matters. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20240808783097/en/
Investor Relations:
Jaclyn Berkley, Head of Investor Relations
Brendon Frey, ICR
investors@warbyparker.com
Media:
Ali Weltman
ali@derris.com
Source: Warby Parker Inc.
FAQ
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