Slide 1: Second Quarter 2024 Earnings Report
SECOND QUARTER 2024 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 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
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.
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. We’ve helped pioneer the vertically integrated, direct-to-consumer model while evolving from a glasses-only business into a holistic vision care com
Slide 5: Q2 2024 key metrics
$188M 13.3% 2.39M $302 56.1% $19.6M 10.4% $14.0M (1) Key operating metric. See definition in appendix. (2) Non-GAAP financial term. See appendix for definitions and reconciliations of non-GAAP measures.
Slide 6: Net revenue growth of 13.3% and active customers up 4.5%
$188.2 $166.1 $149.6 13.7% 13.3% 11.0% ● Q2’24 net revenue growth of 13.3% vs. Q2’23 ● Active Customers up 4.5% vs. Q2’23 2,258 2,285 2,386 ● Average Revenue per Customer up 8.8% to $302 $254 $277 $302 178 217 256 ● Opened 11 net new stores in Q2’24, ending with 256 stores $388.2 $302.8 $338.1 14.8%
Slide 7: Adjusted EBITDA margin of 10.4%, adjusted gross margin
$19.6 $14.2 ● Adjusted EBITDA margin(1) of 10.4%, up 1.9 pts from Q2’23 $5.9 10.4% 8.5% ● Adjusted Gross Margin(1) of 56.1% in Q2’24 increased 1.4 pts 4.0% from 54.7% in Q2’23 57.9% 54.7% 56.1% ● Marketing as a percent of revenue of 11.9%, up 0.9 pts from 13.8% 11.0% 11.9% Q2’23 59.2% 52.2% 52.2% ●
Slide 8: Revenue, customers and average revenue per customer trends
2.39 $200.0 2.36 $188.2 2.33 $172.0 $166.1 $169.8 $161.9 2.29 2.28 2.30 4.5% 3.2% 16.3% 2.5% 2.5% 14.2% 13.3% 1.8% 12.2% 11.0% 10.5% 1.2% Avg Rev / Customer $270 $277 $284 $287 $296 $302 Y/Y Growth 8.4% 9.2% 10.0% 9.3% 9.6% 8.8% $113.7 $105.7 $95.0 $90.9 $93.0 $87.4 $22.4 $17.7 $19.6 56.9% 56.1% $14
Slide 9: Customer cohort sales retention rate
Source: Company data Note: Sales Retention Rate based on customer cohort sales order value and months since initial purchase. Only cohorts with a full period of data available as of 6/30/2024 are presented. (1) 2019 cohort was impacted by onset and continuation of COVID pandemic in 2020 and 2021, wh
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Slide 11: Retail store footprint and potential
900+ 256 open retail stores 256 251 U.S. and 5 Canada 88 markets 40 states 191 cities Current Potential 11 net new retail stores in Q2 2024 footprint footprint(1) Store presence in 47 of the 50 most populous markets in the U.S. Location types: ~30% street, ~45% outdoor center, ~25% indoor center As
Slide 12: Store examples: South Hills Village and Mayfaire Town Center
South Hills Village (Pittsburgh, PA) Mayfaire Town Center (Wilmington, NC)
Slide 13: Q3 and full year 2024 guidance
$757–762M $72.5M ~13–14% ~9.5% $188–190M $17.0M ~11–12% ~9.0% (1) At the midpoint of our range. Non-GAAP financial term. See appendix for definition of non-GAAP measures and the note at the beginning of the presentation regarding reconciliation of non-GAAP measures in guidance.
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Slide 15: Supplemental Details
S U P P L E M E N TA L D E TA I L S
Slide 16: Net revenue by quarter (2019 - Q2 2024)
NET REVENUE BY QUARTER (2019 - Q2 2024) Net revenue in bars ($M) 2019 2020 2021 2022 2023 2024 | $188 Average = $1 | Average = $150M | A 135M Average = $98M aa Q119 Q249 Q3%9 Q419 Q1'20 Q2’20 Q3’20 Q4’20 Q1'21 Q2’21 Q3’21 421 Q1’'22 Q2’22 Q3’22 Q4’22 _Q1’'23 Q2’23 Q3’23 Q4’23 Q1’'24 Q2’24 % of Year
Slide 17: Appendix
APPENDIX
Slide 18: 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
Slide 19: Adjusted EBITDA reconciliation
($6,762) ($15,925) ($9,441) ($26,737) (2,567) (2,281) (5,123) (4,160) 373 (24) 481 237 11,121 9,284 21,704 18,424 22 255 421 650 14,097 18,164 28,412 38,030 2,196 600 2,196 600 935 463 2,008 826 - 3,639 - 4,042 168 - 1,303 - $19,583 $14,175 $41,961 $31,912 10.4% 8.5% 10.8% 9.4% (1) Represents expens
Slide 20: 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
Slide 21: 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:
Slide 22: Thank You
THANK YOU