On August 8, 2024, Warby Parker Inc (WRBY, Financial) released its 8-K filing for the second quarter of 2024, showcasing a notable performance that exceeded analyst estimates. Warby Parker Inc is engaged in designing and developing designer prescription glasses and contacts, and providing the facility of eye exams and vision tests. The company predominantly derives revenue from the sales of eyewear products, optical services, and accessories. The firm sells products and services through its stores, website, and mobile apps. Revenue generated from eyewear products includes the sales of prescription and non-prescription optical glasses and sunglasses, contact lenses, eyewear accessories, and expedited shipping charges.
Performance Highlights
Warby Parker Inc reported a net revenue increase of 13.3% year-over-year to $188.2 million, surpassing the analyst estimate of $187.04 million. The company also reported a GAAP net loss of $6.8 million, which is an improvement from the previous year's net loss of $15.9 million. The gross margin increased by 1.4 percentage points to 56.0%, driven by faster growth in glasses, lower outbound customer shipping costs, and efficiencies in owned optical laboratories.
Key Financial Achievements
Warby Parker Inc's financial achievements for Q2 2024 include:
- Net revenue of $188.2 million, a 13.3% increase from the prior year period.
- Gross profit of $105.4 million, a 16.3% increase from the prior year period.
- Adjusted EBITDA of $19.6 million, up from $14.2 million in the prior year period.
- Net cash provided by operating activities of $31.6 million.
- Free Cash Flow of $14.0 million.
Income Statement and Balance Sheet Insights
From the income statement, Warby Parker Inc's selling, general, and administrative expenses (SG&A) were $114.3 million, representing 60.8% of revenue, down from 65.5% in the prior year period. The company ended the quarter with $238.0 million in cash and cash equivalents, reflecting a strong liquidity position.
| Metric | Q2 2024 | Q2 2023 |
|---|---|---|
| Net Revenue | $188.2 million | $166.1 million |
| Gross Profit | $105.4 million | $90.6 million |
| GAAP Net Loss | $6.8 million | $15.9 million |
| Adjusted EBITDA | $19.6 million | $14.2 million |
Commentary and Future Outlook
"We’re proud of the progress we’re making on our core strategic initiatives to accelerate growth," shared Co-Founder and Co-CEO Dave Gilboa. "In Q2, we drove our fourth consecutive quarter of active customer growth and our highest ecommerce growth since Q1‘21."
"Our strong results demonstrate Team Warby’s ability to drive sustainable growth. Amidst strategic reinvestment in customer acquisition, store expansion, proprietary technology, and more, we’re still expanding the bottomline and delivering value for our stakeholders," said Co-Founder and Co-CEO Neil Blumenthal.
Analysis and Conclusion
Warby Parker Inc's performance in Q2 2024 highlights the company's ability to grow its customer base and increase average revenue per customer. The company's strategic investments in customer acquisition, store expansion, and technology are paying off, as evidenced by the improved financial metrics and raised full-year outlook. With a strong cash position and continued focus on growth and profitability, Warby Parker Inc is well-positioned to navigate the competitive landscape in the Medical Devices & Instruments industry.
Explore the complete 8-K earnings release (here) from Warby Parker Inc for further details.
