Warby Parker Inc. · NYSE:WRBY
Warby Parker — Q3 2024 Earnings Presentation
22 slides from Warby Parker's earnings presentation, Nov 7, 2024
Slide 1: Third Quarter 2024 Earnings Report
THIRD 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: Since 2010, we've offered high-quality prescription eyewear
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: Q3 2024 key results
$192M 13.3% 5.6% $305 54.6% $17.3M 9.0% $13.1M (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: Q3'24 net revenue growth of 13.3%
$192.4 $169.8 $148.8 14.2% 13.3% 8.3% ● Q3’24 net revenue growth of 13.3% vs. Q3’23 ● TTM Active Customers up 5.6% vs. Q3’23 2,262 2,303 2,431 ● Average Revenue per Customer up 7.5% to $305 $258 $284 $305 190 227 269 ● Opened 13 net new stores in Q3’24, ending with 269 stores $580.7 $507.9 $451.6 ●
Slide 7: Quarterly net revenue, Adjusted EBITDA and customer trends
2.43 $200.0 $192.4 2.39 $188.2 2.36 $172.0 $166.1 $169.8 $161.9 2.33 5.6% 2.29 2.28 2.30 4.5% 16.3% 3.2% 14.2% 13.3% 13.3% 2.5% 2.5% 12.2% 11.0% 1.8% 10.5% 1.2% $22.4 $287 $296 $302 $305 $270 $277 $284 $17.7 $19.6 $17.3 $14.2 11.2% 10.3% $11.0 10.4% 9.0% $9.4 10.0% 9.6% 8.4% 9.2% 9.3% 8.8% 8.5% 6.5%
Slide 8: Customer cohort sales retention rates
105% 101% 100% 97% 98% 75% 75% 77% 75% 74% 73% 50% 50% 51% 51% 48% 49% 47% 49% 24% 25% 25% 25% 22% 25% 26% 25% 23% 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 9/3
Slide 9: Adjusted EBITDA and gross margin
$17.3 $11.9 $11.0 ● Adjusted EBITDA Margin(1) of 9.0%, up 2.5 pts from Q3’23 8.0% 9.0% 6.5% ● Adjusted Gross Margin(1) of 54.6% in Q3’24 decreased 0.2 pts from 54.8% in Q3’23 56.9% 54.8% 54.6% ● Marketing as a percent of revenue of 12.3%, up 0.7 pts 10.0% 11.6% 12.3% from Q3’23 55.3% 55.0% 52.3% ● A
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Slide 11: Retail store footprint and potential
900+ 269 open retail stores 269 264 U.S. and 5 Canada 91 markets 40 states 202 cities Current Potential 13 net new retail stores in Q3 2024 footprint footprint(1) Store presence in 47 of the 50 most populous markets in the U.S. Location types: ~29% street, ~44% outdoor center, ~27% indoor center As
Slide 12: Store examples: 69th & Third and Battlefield Mall
69th & Third (New York, NY) Battlefield Mall (Springfield, MO)
Slide 13: Q4 and full year 2024 guidance
$765–768M ~$73M ~14–15% 9.5% $184.3–187.3M $13.6M ~14–16% ~7.3% (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: Quarterly net revenue and seasonality
+24% $200 $192 +17% $188 +15% $172 $170 $153 $166 $162 +23% $150 $149 $146 $139 $137 $132 $133 +17% Average = $167M $113 $110 $104 $94 $95 $94 Average = $150M $89 Average = $135M $67 Average = $98M Average = $93M 25% 24% 26% 25% 28% 17% 26% 29% 26% 24% 25% 25% 26% 25% 25% 24% 26% 25% 25% 25% - - - 3
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: Reconciliation of Adjusted EBITDA to Net Income
R E C O N C I L I AT I O N O F A D J U S T E D E B I T D A T O N E T I N C O M E
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