Warby Parker Inc. · NYSE:WRBY
Warby Parker — Q3 2022 Earnings Presentation
28 slides from Warby Parker's earnings presentation, Nov 10, 2022
Slide 1: Third Quarter 2022 Earnings Report
THIRD QUARTER 2022 EARNINGS REPORT Speakers: DAVE GILBOA | Co-Founder & Co-CEO NEIL BLUMENTHAL | Co-Founder & Co-CEO STEVE MILLER | SVP & Chief Financial Officer
Slide 2: Forward-looking statements
This presentation contains 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 fi
Slide 3: Since our founding, we've pioneered ideas to help people see
SINCE OUR FOUNDING, WE’VE PIONEERED IDEAS, DESIGNED PRODUCTS, AND DEVELOPED TECHNOLOGIES THAT HELP PEOPLE SEE.
Slide 4: Our sales represent just 1% of the $44 billion U.S. eyewear market
1. Our sales represent just 1% of the $44 billion U.S. eyewear market 2. We maintain a best-in-class NPS of 80+, with low unaided brand awareness of less than 15% 3. We helped pioneer the vertically integrated, direct-to-consumer model 4. Warby Parker has 190 stores(1) out of 41,000 optical shops in
Slide 5: Q3 2022 key metrics
$149M 8.3% 2.26M $258 81 190 $11.9M 8.0% (1) Defined as net revenue for the trailing twelve-month period divided by the number of Active Customers as of the end of that same period. (2) Net Promoter Score is calculated on a trailing twelve-month basis weighted for the number of responses received. (3
Slide 6: Pike & Rose; Shoppes at DePiero Farm
Pike & Rose (North Bethesda, MD) Shoppes at DePiero Farm (Montvale, NJ)
Slide 7: Slide 7
Slide 8: Net revenue growth and Active Customers
$137.4 $148.8 $104.1 ● Q3’22 net revenue growth of 8% vs. Q3’21 and up 16% on a 3-year CAGR basis vs. Q3’19 10% 32% 8% 25% 26% 16% ● Active Customers as of Q3’22 at 2.26M, an 1.76 2.15 2.26 increase of 110K active customers, or 5%, y/y $213 $242 $258 vs. Q3’21 123 154 190 ● Opened 13 new stores in Q
Slide 9: Adjusted EBITDA margin and gross margin
$11.9 $11.2 $5.4 ● Adjusted EBITDA margin(1) of 8.0%, down 0.1 pts from Q3’21 5.2% 8.1% 8.0% ● Adjusted gross margin(1) was 56.9% compared to 58.7% in Q3’21, primarily driven by increased penetration of contacts reflecting strategy to grow contact lens offering 61.5% 58.7% 56.9% 60.5% 54.6% 55.2% ● Ad
Slide 10: Quarterly net revenue, Adjusted EBITDA and customers
$148.8 $137.4 2.15 2.26 $104.1 1.76 32% 10% 8% 23% 5% 3% $11.9 $242 $258 $11.2 $213 13% $5.4 8.1% 8.0% 5% 7% 5.2% Adjusted EBITDA and Adjusted EBITDA Margin % are non-GAAP measures. See the appendix for reconciliations to the nearest GAAP metrics.
Slide 11: Quarterly revenue, EBITDA and store productivity
$153.2 $149.6 $148.8 $10.8 $11.2 $11.9 $9.3 $139.0 $137.4 $132.9 $5.9 $131.6 $0.8 6.7% 8.2% 8.1% 4.0% 8.0% (4.8%) 0.5% 96% 27% 32% 18% 10% 14% 8% ($6.4) 190 169 178 154 161 134 145 Adjusted EBITDA and Adjusted EBITDA Margin % are non-GAAP measures. See the appendix for reconciliations to the nearest
Slide 12: Current footprint and potential
900+ 190 open retail stores 190 186 U.S. and 4 Canada 65 markets 38 states/provinces 136 cities Current Potential 40 target new retail stores in 2022 (30 opened through 9/30/2022) footprint footprint Store presence in 47 of the 50 most populous markets in the U.S. Location types: ~37% street, ~37% o
Slide 13: Andersonville (Chicago, IL)
Andersonville (Chicago, IL)
Slide 14: Optical lab in Sloatsburg, NY
Optical lab in Sloatsburg, NY
Slide 15: Full year 2022 guidance
$590–596M $24.8–27.0M 9.1–10.2% 4.2–4.5% 4.0–8.7% 4.5–5.8%
Slide 16: Contact lens offering
PACUVUE | mee Moist
Slide 17: Waterside; Watters Creek
Waterside (Marina del Rey, CA) Watters Creek (Allen, TX)
Slide 18: Supplemental Details
S U P P L E M E N TA L D E TA I L S
Slide 19: Quarterly net revenue
Figures presented may not be recalculated due to rounding Quarterly net revenue figures are unaudited
Slide 20: Customer cohort sales retention
(1) (2) (3) Source: Company data Note: Sales retention based on customer cohort sales order value and months since initial purchase. (1) 2019 cohort was impacted by onset and continuation of COVID pandemic in 2020 and 2021, which is reflected in that cohort’s retention rate after 12 and 24 months. (2
Slide 21: Appendix
APPENDIX
Slide 22: Non-GAAP financial measures
Included in this presentation are certain financial measures that are not calculated in accordance with U.S. generally accepted accounting principles (“GAAP”) and which are designed to supplement, and not substitute, the Company’s financial information presented in accordance with GAAP. The non-GAAP m
Slide 23: Adjusted EBITDA reconciliation
($23,843) ($91,073) ($90,142) ($98,368) 183 146 75 452 (12) (1,052) 574 151 8,342 5,587 22,947 15,273 1,097 - 1,509 137 24,358 65,929 78,603 77,599 - 7,757 3,270 7,757 - 23,893 - 28,262 96 - 96 - 170 - 170 - 1,535 - 1,535 - $11,926 $11,187 $18,637 $31,263 8.0% 8.1% 4.1% 7.7% (1) Represents expenses
Slide 24: Supplemental financial information
SUPPLEMENTAL FINANCIAL INFORMATION AS REPORTED AS REPORTED Three Months Ended September 30 Nine Months Ended September 30 Unaudited, in thousands 2022 2021 2022 vs. 2021 2022 2021 2022 vs. 2021 Net Revenue $148,777 $137,373 8.3% $451,619 $407,906 10.7% Gross Profit $84,418 $79,664 6.0% $260,411 $241
Slide 25: Reported to adjusted results
$64,359 $57,709 $64,120 $56,786 $191,208 $166,407 $190,499 $165,484 43.3% 42.0% 43.1% 41.3% 42.3% 40.8% 42.2% 40.6% $84,418 $79,664 $84,657 $80,587 $260,411 $241,499 $261,120 $242,422 56.7% 58.0% 56.9% 58.7% 57.7% 59.2% 57.8% 59.4% $108,090 $171,643 $82,170 $74,987 $349,904 $339,264 $266,939 $226,56
Slide 26: Quarterly Adjusted EBITDA reconciliation
($15,865) $2,141 ($253) ($8,900) $6,425 $4,050 $1,383 ($11,856) $2,778 ($12,786) ($41,612) ($4,301) $3,011 ($10,307) ($91,073) ($45,902) ($34,133) ($32,166) ($23,843) (79) (329) (536) (429) (613) (889) (58) (379) 49 496 81 (529) (134) 440 146 (105) (146) 38 183 59 59 59 62 998 410 154 (1,288) 189 93
Slide 27: Reconciliation of non-GAAP measures
RECONCILIATION OF NON-GAAP MEASURES 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 September 30 Nine Months Ended September 30 Unaudited, in thousand
Slide 28: Thank you
THANK YOU