Warby Parker Inc. · NYSE:WRBY
Warby Parker — Q2 2022 Earnings Presentation
28 slides from Warby Parker's earnings presentation, Aug 11, 2022
Slide 1: Second Quarter 2022 Earnings Report
SECOND 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 178 stores out of 41,000 optical shops in th
Slide 5: Key metrics: net revenue, active customers, adjusted EBITDA
$150M 13.7% 2.26M $254 80 178 $5.9M 4.0% (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) Non-GAAP financial term. See appendix for reconciliation of non-GAAP measures.
Slide 6: Cherry Hill Mall and Annapolis stores
Cherry Hill Mall (Cherry Hill, NJ) Annapolis (Annapolis, MD)
Slide 7: Slide 7
Slide 8: Q2'22 net revenue growth of 14%
$131.6 $149.6 $67.1 ● Q2’22 net revenue growth of 14% vs. Q1’21 and up (24%) 96% 14% 19% on a 3-year CAGR basis vs. Q2’19 10% 26% 19% ● Active Customers as of Q2’22 at 2.26M, an increase 1.73 2.08 2.26 of 180K active customers, or 9%, y/y vs. Q2’21 $211 $235 $254 118 145 178 ● Opened 9 new stores in
Slide 9: Adjusted EBITDA margin of 4.0%
$10.8 $5.9 8.2% 4.0% ● Adjusted EBITDA margin(1) of 4.0%, down 4.2 pts from Q2’21 (10.3%) ($6.9) ● Adjusted gross margin(1) was 57.9% compared to 59.3% in Q2’21, primarily driven by increased penetration of contacts reflecting strategy to grow contact lens offering 53.9% 59.3% 57.9% 71.0% 55.0% 59.2%
Slide 10: Net revenue, adjusted EBITDA, active customers and revenue per customer
$149.6 2.08 2.26 $131.6 1.73 $67.1 96% 14% 9% 7% 20% (24%) $10.8 $5.9 $235 $254 $211 8.2% 4.0% 6% 8% (10.3%) 11% ($6.9) Adjusted EBITDA and Adjusted EBITDA Margin % are non-GAAP measures. See the appendix for reconciliations to the nearest GAAP metrics.
Slide 11: Trailing 28-day store productivity and quarterly trends
$153.2 $149.6 $9.3 $10.8 $11.2 $139.0 $137.4 $132.9 $5.9 $131.6 $0.8 6.7% 8.2% 8.1% 4.0% (4.8%) 0.5% 96% 27% 32% 18% 10% 14% ($6.4) 169 178 154 161 134 145 Reflects trailing 28-day productivity as of the week ended Sunday shown Adjusted EBITDA and Adjusted EBITDA Margin % are non-GAAP measures. See t
Slide 12: Current footprint and potential retail stores
900+ 178 open retail stores 178 175 U.S. and 3 Canada 65 markets 38 states/provinces 126 cities Current Potential 40 target new retail stores in 2022 footprint footprint Store presence in 47 of the 50 most populous markets in the U.S. Location types: ~40% street, ~35% outdoor center, ~25% indoor cen
Slide 13: Alderwood (Lynnwood, WA)
AS yy Pua == uit Alderwood (Lynnwood, WA)
Slide 14: Optical lab in Sloatsburg, NY
Optical lab in Sloatsburg, NY
Slide 15: Q3 and full-year 2022 guidance
$584–595M 8–10% $22–26M 3.8–4.4% 4–6%
Slide 16: Contact lens offering
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Slide 17: Lakeside Shopping Center and Fashion Island stores
Lakeside Shopping Center (Metairie, LA) Fashion Island (Newport Beach, CA)
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
Figures presented may not be recalculated due to rounding Quarterly net revenue figures are unaudited
Slide 20: Customer cohort sales retention
Source: Company data Note: Sales retention based on customer cohort sales order value and months since initial purchase. (1) 2021 cohort reflects the Q1 2021 and Q2 2021 new customer cohorts only, as these cohorts were the only cohorts from 2021 with a full 12 months of retention data available as of
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
($32,166) ($10,307) ($66,299) ($7,295) 38 440 (108) 306 47 1,059 586 1,202 7,880 5,118 15,017 9,823 26,867 10,409 54,244 11,670 3,270 - 3,270 - - 4,091 - 4,369 $5,936 $10,810 $6,710 $20,075 4.0% 8.2% 2.2% 7.4% (1) Represents expenses related to the Company’s equity-based compensation programs and re
Slide 24: Supplemental financial information
SUPPLEMENTAL FINANCIAL INFORMATION AS REPORTED AS REPORTED Three Months Ended June 30 Six Months Ended June 30 Unaudited, in thousands 2022 2021 2022 vs. 2021 2022 2021 2022 vs. 2021 Net Revenue $149,624 $131,560 13.7% $302,842 $270,553 1.9% Gross Profit $86,347 $78,053 10.6% $175,993 $161,834 87% %
Slide 25: Cost of goods sold, gross profit, SG&A and net loss reconciliation
$63,227 $53,507 $63,042 $53,507 $126,849 $108,699 $126,379 $108,699 42.3% 40.7% 42.1% 40.7% 41.9% 40.2% 41.7% 40.2% $86,347 $78,053 $86,582 $78,053 $175,993 $161,834 $176,463 $161,834 57.7% 59.3% 57.9% 59.3% 58.1% 59.8% 58.3% 59.8% $118,428 $86,861 $88,526 $72,361 $241,814 $167,621 $184,770 $151,582
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) (79) (329) (536) (429) (613) (889) (58) (379) 49 496 81 (529) (134) 440 146 (105) (146) 38 59 59 59 62 998 410 154 (1,288) 189 93 196 (287) 144
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 June 30 Six Months Ended June 30 Unaudited, in thousands 2022 2021
Slide 28: Thank you
THANK YOU