Q2 2024 Warby Parker Inc Earnings Call Transcript
Key Points
- Warby Parker Inc (WRBY) reported a 13.3% year-over-year increase in net revenue, reaching $188.2 million.
- The company achieved a 40% growth in adjusted EBITDA, amounting to $19.6 million, with a margin of 10.4%.
- Retail revenue increased by 17.8% year-over-year, and e-commerce revenue grew by 4.4%, marking the highest quarterly growth since Q1 2021.
- The company expanded its store count to 256, adding 39 net new stores over the past year, which contributed to retail growth.
- Warby Parker Inc (WRBY) raised its full-year guidance for both net revenue and adjusted EBITDA, expecting $72.5 million in adjusted EBITDA at the midpoint of its guidance.
- Despite growth, the company faces challenges in the broader macroeconomic environment, maintaining a conservative stance on guidance.
- Gross margin expansion is expected to moderate in Q3, with projections pointing to the midpoint of the mid-50s range.
- Marketing spend increased, leading to a slight deleverage, with marketing expenses rising from 11% to 11.9% of revenue.
- The company is still in the early stages of its eye care business, with only a small fraction of customers purchasing glasses and contacts with prescriptions from Warby Parker exams.
- Warby Parker Inc (WRBY) has yet to see significant pent-up demand in the optical category, with no major change in consumer trends year-to-date.
Hello, everyone, and welcome to the Warby Parker second quarter 2024 earnings call. My name is Seb and I will be the operator for your call today. (Operator Instructions)
I will now hand the floor over to Jaclyn Berkley to begin. Please go ahead.
Thank you, and good morning, everyone. Here with me today are Neil Blumenthal and Dave Gilboa, our Co-Founders and Co-CEOs, alongside Steve Miller, Senior Vice President and Chief Financial Officer.
Before we begin, we have a couple of reminders. Our earnings release and slide presentation are available on our website at investor.warbyparker.com. During this call and in our presentation, we will be making comments of a forward-looking nature. Actual results may differ materially from those expressed or implied as a result of various risks and uncertainties. For more information about some of these risks, please review the company's SEC filings, including the section titled Risk Factors in the company's latest annual report on Form 10-K.
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