Warby Parker Inc. · NYSE:WRBY
Warby Parker — Q1 2022 Earnings Presentation
26 slides from Warby Parker's earnings presentation, May 16, 2022
Slide 1: First Quarter 2022 Earnings Report
FIRST 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 / Non-GAAP Financial Measures
F O R WA R D - L O O K I N G S TAT E M E N T S / N O N - G A A P F I N A N C I A L M E A S U R E S 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. Th
Slide 3: Since our founding, we've pioneered ideas, designed products, and developed technologies that help people see
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.
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 169 stores out of 41,000 optical shops in th
Slide 5: Key metrics: net revenue, active customers, revenue per customer, Adjusted EBITDA
$153M 10.3% 2.23M $249 80+ 169 $0.8M 0.5% (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. 5
Slide 6: Slide 6
Slide 7: Lehigh Valley (Whitehall, PA)
Lehigh Valley (Whitehall, PA)
Slide 8: Q1'22 net revenue growth of 10% vs. Q1'21
$153.2 $139.0 $109.7 ● Q1’22 net revenue growth of 10% vs. Q1’21 and up 18% on a 3-year CAGR basis vs. Q1’19 ● Active Customers as of Q1’22 at 2.23M, an increase of 340K active customers, or 18%, y/y vs. Q1’21 17% 27% 10% 28% 27% 18% ● Opened 8 new stores in Q1’22, ending the quarter with 169 1.80 1
Slide 9: Net revenue, active customers and Adjusted EBITDA trends
2.23 $139.0 $153.2 1.80 1.89 $109.7 27% 10% 18% 16% 17% 5% $9.3 $223 $249 $8.1 $214 7.4% 11% 11% 6.7% 0.5% 4% $0.8 Adjusted EBITDA is a non-GAAP measure. See the appendix for reconciliations to the nearest GAAP metrics.
Slide 10: Quarterly net revenue and Adjusted EBITDA with store productivity
$153.2 $139.0 $10.8 $11.2 $137.4 $9.3 $131.6 $132.9 $0.8 6.7% 8.2% 8.1% 96% (4.8%) 0.5% 27% 32% ($6.4) 18% 10% 161 169 145 154 134 * Reflects trailing 28-day productivity as of the closest Sunday to the end of each month shown
Slide 11: Retail store footprint and potential
900+ 169 open retail stores 169 166 U.S. and 3 Canada 64 markets 38 states/provinces 118 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 12: Crocker Park (Westlake, OH)
Crocker Park (Westlake, OH)
Slide 13: Optical lab in Sloatsburg, NY
Optical lab in Sloatsburg, NY
Slide 14: Optical lab in Las Vegas, NV
Optical lab in Las Vegas, NV
Slide 15: Full year 2022 guidance
$650–660M 20–22% 5.6–6.6% 13–15%
Slide 16: Long-term outlook for sustainable growth
LONG-TERM OUTLOOK FOR SUSTAINABLE GROWTH 20%+ NET REVENUE GROWTH 58-60% GROSS MARGINS 20%+ ADJUSTED EBITDA MARGIN
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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: Appendix
APPENDIX
Slide 21: 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 AS REPORTED Unaudited, in thousands Q1’22 Q1’21 Q1’22 vs. Q1’21 Net Revenue $153,218 $138,973 10.3% Gross Profit $89,646 $83,781 7.0% % of Revenue 58.5% 60.3% (178 bps) Total SG&A $123,386 $80,760 52.8% % of Revenue 80.5% 58.1% 2,242 bps
Slide 22: GAAP to adjusted gross profit, SG&A and net income
$63,572 $55,192 $63,337 $55,192 41.5% 39.7% 41.3% 39.7% $89,646 $83,781 $89,881 $83,781 58.5% 60.3% 58.7% 60.3% $123,386 $80,760 $96,244 $79,221 80.5% 58.1% 62.8% 57.0% ($34,133) $3,011 ($4,356) $3,289 (22.3%) 2.2% (2.8%) 2.4%
Slide 23: Adjusted EBITDA reconciliation
($34,133) $3,011 (146) (134) 539 144 7,137 4,704 27,377 1,261 - 278 $774 $9,264 0.5% 6.7% (1) Represents expenses related to the Company's equity-based compensation programs, which may vary significantly from period to period depending on various factors including the timing, number, and valuation of
Slide 24: 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) (79) (329) (536) (429) (613) (889) (58) (379) 49 496 81 (529) (134) 440 146 (105) (146) 59 59 59 62 998 410 154 (1,288) 189 93 196 (287) 144 1,059 (1,052
Slide 25: Adjusted net income reconciliation
$63,572 $55,192 $43,067 235 - 1 $63,337 $55,192 $43,066 $89,646 $83,781 $66,590 235 - 1 $89,881 $83,781 $66,591 $123,386 $80,760 $63,574 27,142 1,261 648 - 278 - $96,244 $79,221 $62,926 ($34,133) $3,011 $2,778 539 144 189 (33,594) 3,155 2,967 27,377 1,261 649 - 278 - 1,861 (1,405) (1,083) ($4,356) $
Slide 26: Thank You
THANK YOU WA R B Y PA R K E R 26