Warby Parker Inc. · NYSE:WRBY

Warby Parker — Q1 2023 Earnings Presentation

31 slides from Warby Parker's earnings presentation, May 9, 2023

  1. Slide 1: First Quarter 2023 Earnings Report

    FIRST QUARTER 2023 EARNINGS REPORT Speakers: DAVE GILBOA | Co-Founder & Co-CEO NEIL BLUMENTHAL | Co-Founder & Co-CEO STEVE MILLER | SVP & Chief Financial Officer

  2. Slide 2: Forward-looking statements and non-GAAP disclaimer

    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

  3. Slide 3: Since our founding, we've pioneered ideas, designed products, developed technologies

    SINCE OUR F O U N D I N G, W E ’ V E P I O N E E R E D I D E AS, D E S I G N E D P R O D U C T S, A N D D E V E LO P E D T E C H N O LO G I E S T H AT H E L P P E O P L E S E E.

  4. Slide 4: Warby Parker at a glance

    1. Since 2010, we’ve offered high-quality prescription eyewear—designed in-house—starting at $95 and delivered industry-leading customer experiences 2. Our sales represent less than 1% of the $76 billion U.S. eyewear market 3. We helped pioneer the vertically integrated, direct-to-consumer model 4. W

  5. Slide 5: Q1 2023 key metrics

    $172M 12.2% 2.29M $17.7M 10.3% $270 (1) Adjusted EBITDA and Adjusted EBITDA Margin are non-GAAP measures. See the appendix for reconciliations to the nearest GAAP measures. (2) Defined as net revenue for the trailing twelve-month period divided by the number of Active Customers as of the end of that

  6. Slide 6: Valley Fair and Montgomery Village stores

    Valley Fair (Santa Clara, CA) Montgomery Village (Santa Rosa, CA)

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  8. Slide 8: Q1'23 net revenue growth of 12.2%

    $153.2 $172.0 $139.0 ● Q1’23 net revenue growth of 12.2% vs. Q1’22 ● Average revenue per customer up 8.4% to $270 ● Opened 6 new stores in Q1’23, ending the quarter 26.7% 10.3% 12.2% with 204 stores 1.89 2.23 2.29 $223 $249 $270 134 169 204 ● Adjusted EBITDA margin(1) of 10.3%, up 9.8 pts from $17.7

  9. Slide 9: Net revenue, Adjusted EBITDA and active customers

    $172.0 $153.2 2.23 2.29 $139.0 1.89 26.7% 17.8% 10.3% 12.2% 5.0% 2.5% $249 $270 $17.7 $223 $9.3 $0.8 0.5% 11.3% 4.2% 8.4% 6.7% 10.3% Adjusted EBITDA and Adjusted EBITDA Margin % are non-GAAP measures. See the appendix for reconciliations to the nearest GAAP metrics.

  10. Slide 10: Quarterly net revenue and Adjusted EBITDA trends

    $172.0 $17.7 $153.2 $149.6 $148.8 $146.5 $11.9 $8.6 $5.9 $0.8 10.3% 13.7% 10.2% 12.2% 0.5% 4.0% 8.0% 5.8% 10.3% 8.3% 204 $258 $263 $270 190 200 $249 $254 169 178 11.3% 8.2% 6.8% 6.9% 8.4% Adjusted EBITDA and Adjusted EBITDA Margin % are non-GAAP measures. See the appendix for reconciliations to the

  11. Slide 11: Current footprint and potential store footprint

    900+ 204 open retail stores 204 199 U.S. and 5 Canada 67 markets 39 states/provinces 146 cities Current Potential 6 new retail stores in 2023 footprint footprint Store presence in 47 of the 50 most populous markets in the U.S. Location types: ~36% street, ~37% outdoor center, ~27% indoor center As o

  12. Slide 12: Ridgedale Center (Minnetonka, MN)

    Ridgedale Center (Minnetonka, MN)

  13. Slide 13: 80th & Columbus (New York, NY)

    80th & Columbus (New York, NY) Exterior 80th & Columbus (New York, NY) Interior

  14. Slide 14: La Centerra at Cinco Ranch (Katy, TX)

    La Centerra at Cinco Ranch (Katy, TX)

  15. Slide 15: Optical labs in Sloatsburg and Las Vegas

    Optical lab in Sloatsburg, NY Optical lab in Las Vegas, NV

  16. Slide 16: 2023 guidance

    $645–660M $51.5M 8–10% 7.9% 7–9% 7–8%

  17. Slide 17: Menlo Park Mall (Edison, NJ)

    ae in, NJ) Menlo Park Mall (Ediso.

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  21. Slide 21: Supplemental Details

    S U P P L E M E N TA L D E TA I L S

  22. Slide 22: Net revenue by quarter (2017 - Q1 2023)

    NET REVENUE BY QUARTER (2017 - Q1 2023) Net revenue in bars ($M) 2017 2018 2019 2020 2021 2022 rh 2023 415% ~ $150 $149 432% |. Average = $150M Average = $135M $67 Average=$93M fil Average = S98M Average = $52M Q117 Q2'17 Q3'7 Q417 Q118 Q218 Q318 Q418 A119 Q219 Q319 Q4"19 /ar20 Q2'20 @3'20 @4'20 Q1'

  23. Slide 23: Customer cohort sales retention

    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) 24 month r

  24. Slide 24: Appendix

    APPENDIX

  25. Slide 25: Non-GAAP financial measures definitions

    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

  26. Slide 26: Adjusted EBITDA reconciliation

    ($10,812) ($34,133) (1,878) (146) 261 539 9,140 6,910 395 227 19,866 27,377 363 - 403 - $17,738 $774 10.3% 0.5% (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 va

  27. Slide 27: Supplemental Financial Information

    S U P P L E M E N TA L F I N A N C I A L I N F O R M AT I O N

  28. Slide 28: Adjusted gross margin and SG&A reconciliation

    $77,177 $63,572 $76,979 $63,337 44.9% 41.5% 44.8% 41.3% $94,791 $89,646 $94,989 $89,881 55.1% 58.5% 55.2% 58.7% $107,221 $123,386 $87,150 $96,244 62.3% 80.5% 50.7% 62.8% ($10,812) ($34,133) $6,855 ($4,385) (6.3%) (22.3%) 4.0% (2.9%)

  29. Slide 29: Quarterly Adjusted EBITDA reconciliation

    $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) ($20,251) ($10,812) (613) (889) (58) (379) 49 496 81 (529) (134) 440 146 (105) (146) 38 183 (1,382) (1,878) 998 410 154 (1,288) 189 93 196 (287) 144 1,059 (1,052) 112

  30. Slide 30: Reconciliation of Non-GAAP Measures

    R E C O N C I L I AT I O N O F N O N - G A A P M E A S U R E S 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: 27

  31. Slide 31: Thank You

    THANK YOU

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