The earnings call highlighted strong revenue growth, an increase in active customers, and successful expansion in both store locations and offerings like contact lenses and eye exams. However, there were challenges with modest gross margin pressure and slower e-commerce growth. The company remains confident in its strategic initiatives and financial health.

Company Guidance

During the Warby Parker Q3 2024 earnings call, the company exceeded its guidance with notable financial metrics including a net revenue of $192.4 million, reflecting a 13.3% year-over-year growth, and a 250 basis point increase in adjusted EBITDA margin. The company raised its full-year guidance, anticipating 14% to 15% revenue growth and approximately $73 million in adjusted EBITDA. The quarter ended with 2.4 million active customers, marking a 5.6% increase, with an average revenue per customer growing by 7.5%. Retail revenue saw a significant 20% year-over-year increase, while e-commerce revenue rose by 1%. The gross margin was stable at 54.6%, slightly down by 13 basis points year-over-year. The company also announced plans to maintain a store opening rate of at least 40 new locations annually, with a long-term potential of over 900 stores, and highlighted its strategic investments in eye care services and insurance partnerships to drive future growth.

Revenue and Growth Performance

Net revenue for Q3 2024 was $192.4 million, marking a 13.3% year-over-year growth. The company also achieved a 250 basis points expansion in adjusted EBITDA margin, reaching its highest level of the year.

Increase in Active Customers

The company ended Q3 with 2.4 million active customers, a 5.6% increase on a trailing 12-month basis. Average revenue per customer also grew by 7.5%.

Store Expansion and Performance

Warby Parker opened 13 new stores in Q3, contributing to a 20% year-over-year increase in retail revenue. The company now operates 269 stores, with plans to continue expanding.

Contact Lens and Eye Exam Growth

Contact lens sales grew approximately 35% year-over-year, and eye exam revenue grew by about 40% year-over-year, contributing to over 5% of total revenue.

Strong Financial Position

Warby Parker was free cash flow positive for the sixth consecutive quarter, ending Q3 with $251 million in cash and an undrawn credit facility of $120 million.

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Warby Parker (WRBY) Earnings, Revenues Date & History

The upcoming earnings date is based on a company’s previous reporting, and may be updated when the actual date is announced

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WRBY Earnings History

Report Date	Fiscal Quarter	Forecast / EPS	Last Year's EPS	EPS YoY Change	Slides	Play Transcript
Nov 12, 2021	2021 (Q3)	-0.52 / -1.45	-0.374	-287.70% (-1.08)	―	―
Mar 17, 2022	2021 (Q4)	-0.09 / -0.08	-0.039	-105.13% (-0.04)	―	―
May 16, 2022	2022 (Q1)	<0.01 / -0.04	0.027	-244.44% (-0.07)	―	―
Aug 11, 2022	2022 (Q2)	-0.02 / -0.01	-0.11	90.91% (+0.10)	―	―
Nov 10, 2022	2022 (Q3)	0.03 / 0.01	-1.45	100.69% (+1.46)
Feb 28, 2023	2022 (Q4)	>-0.01 / 0.00	-0.08	―
May 09, 2023	2023 (Q1)	0.04 / 0.06	-0.039	253.85% (+0.10)
Aug 09, 2023	2023 (Q2)	0.02 / 0.04	-0.01	500.00% (+0.05)
Nov 08, 2023	2023 (Q3)	<0.01 / 0.01	0.01	0.00% (0.00)
Feb 28, 2024	2023 (Q4)	<0.01 / -0.01	0	―

The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.

Beat

Missed

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WRBY Earnings-Related Price Changes

Report Date	Price 1 Day Before	Price 1 Day After	Percentage Change
Nov 07, 2024	$18.97	$19.31	+1.79%
Aug 08, 2024	$14.06	$14.04	-0.14%
May 09, 2024	$12.44	$14.68	+18.01%
Feb 28, 2024	$15.04	$12.79	-14.96%

Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.

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