Warby Parker Inc. (WRBY) Bundle
A Brief History of Warby Parker
Company Overview
Founded in 2010, Warby Parker is a direct-to-consumer eyeglasses retailer that has redefined the eyewear industry by offering stylish, affordable glasses and a seamless shopping experience. As of September 30, 2024, the company operates 269 retail locations and provides a comprehensive range of eyewear products, including prescription glasses, sunglasses, and contact lenses.
Financial Performance
For the three months ended September 30, 2024, Warby Parker reported:
| Metric | Q3 2024 | Q3 2023 | Change ($) | Change (%) |
|---|---|---|---|---|
| Net Revenue | $192,447,000 | $169,849,000 | $22,598,000 | 13.3% |
| Cost of Goods Sold | $87,580,000 | $77,117,000 | $10,463,000 | 13.6% |
| Gross Profit | $104,867,000 | $92,732,000 | $12,135,000 | 13.1% |
| Net Loss | $(4,072,000) | $(17,413,000) | $13,341,000 | 76.7% |
| Adjusted EBITDA | $17,308,000 | $11,031,000 | $6,277,000 | 57.0% |
For the nine months ended September 30, 2024, Warby Parker reported:
| Metric | 9M 2024 | 9M 2023 | Change ($) | Change (%) |
|---|---|---|---|---|
| Net Revenue | $580,672,000 | $507,910,000 | $72,762,000 | 14.3% |
| Cost of Goods Sold | $256,964,000 | $229,752,000 | $27,212,000 | 11.8% |
| Gross Profit | $323,708,000 | $278,158,000 | $45,550,000 | 16.4% |
| Net Loss | $(13,513,000) | $(44,150,000) | $30,637,000 | 69.3% |
| Adjusted EBITDA | $59,269,000 | $42,943,000 | $16,326,000 | 38.0% |
Customer Metrics
As of September 30, 2024, Warby Parker had:
| Metric | Value |
|---|---|
| Active Customers (in thousands) | 2,431 |
| Store Count | 269 |
Stock Performance
As of September 30, 2024, Warby Parker's stock performance was as follows:
| Metric | Value |
|---|---|
| Net Loss per Share (basic and diluted) | $(0.03) |
| Weighted Average Shares Outstanding | 120,885,913 |
Liquidity and Capital Resources
As of September 30, 2024, Warby Parker reported cash and cash equivalents of $251.0 million and an accumulated deficit of $(680.3 million). The company anticipates that existing cash and cash equivalents, along with cash flows from operations, will be sufficient to fund operations for at least the next 12 months.
Recent Developments
In 2023 and 2024, Warby Parker continued to invest in its growth strategy, including expanding its retail footprint and enhancing its e-commerce capabilities. The introduction of new products, such as precision progressive lenses, has driven increased customer engagement and higher average revenue per customer, which rose to $305 from $284 year-over-year.
A Who Owns Warby Parker Inc. (WRBY)
Current Ownership Structure
As of 2024, Warby Parker Inc. (WRBY) has a dual-class share structure consisting of Class A and Class B common stock. The ownership distribution is as follows:
| Share Class | Authorized Shares | Issued and Outstanding Shares | Ownership Percentage |
|---|---|---|---|
| Class A | 750,000,000 | 101,590,781 | 84.6% |
| Class B | 150,000,000 | 18,674,743 | 15.4% |
Major Shareholders
The major institutional and individual shareholders of Warby Parker Inc. include:
- Co-founders Neil Blumenthal and Dave Gilboa hold significant stakes in both Class A and Class B shares.
- Institutional investors hold approximately 70% of Class A shares.
- Notable institutional investors include:
- Vanguard Group
- BlackRock Inc.
- Fidelity Investments
Stock Performance and Market Capitalization
As of September 30, 2024, Warby Parker's stock price was approximately $22.50 per share, with a market capitalization of around $2.57 billion. The stock has shown a price increase of approximately 15% year-to-date.
Financial Overview
For the nine months ended September 30, 2024, Warby Parker reported:
| Financial Metric | 2024 (in thousands) | 2023 (in thousands) | Change ($) | Change (%) |
|---|---|---|---|---|
| Net Revenue | $580,672 | $507,910 | $72,762 | 14.3% |
| Gross Profit | $323,708 | $278,158 | $45,550 | 16.4% |
| Net Loss | ($13,513) | ($44,150) | $30,637 | 69.2% |
Executive Leadership
The executive team leading Warby Parker includes:
- Neil Blumenthal - Co-CEO
- Dave Gilboa - Co-CEO
- Jacqueline R. R. R. - Chief Financial Officer
- Eric A. - Chief Technology Officer
Recent Developments
In May 2024, Warby Parker issued 178,572 shares of Class A common stock to the Warby Parker Impact Foundation, reflecting its commitment to corporate social responsibility.
Stock Options and Equity Awards
As of September 30, 2024, the following options and equity awards were outstanding:
| Type of Award | Outstanding Shares | Available for Future Issuance |
|---|---|---|
| Employee Stock Options | 284,847 | 30,143,925 |
| Restricted Stock Units | 2,753,382 | — |
Warby Parker's unique positioning as a public benefit corporation allows it to focus on both profitability and social impact, enhancing its appeal to socially conscious investors.
Warby Parker Inc. (WRBY) Mission Statement
Overview
Warby Parker Inc. aims to provide high-quality eyewear at a revolutionary price while leading the way for socially conscious business practices. The company emphasizes direct-to-consumer sales, which allows them to minimize costs and pass savings to customers.
Mission Statement Elements
- Quality and Affordability: Warby Parker designs glasses at their New York City headquarters and sells them directly to consumers, with prices starting at $95, including prescription lenses.
- Customer Experience: The company has developed a seamless shopping experience across its website, mobile app, and 269 retail stores as of September 30, 2024.
- Holistic Vision Care: Their offerings extend beyond eyewear to include contact lenses, vision tests, and eye exams, leveraging proprietary technology for enhanced customer experiences.
- Social Impact: As a public benefit corporation, Warby Parker is dedicated to positively impacting stakeholders, distributing glasses through the Buy a Pair, Give a Pair program, which has helped over 15 million people globally.
Financial Data and Performance Metrics
As of September 30, 2024, Warby Parker reported significant financial metrics that reflect its operational efficiency and customer engagement:
| Metric | Q3 2024 | Q3 2023 | % Change |
|---|---|---|---|
| Net Revenue (in thousands) | $192,447 | $169,849 | 13.3% |
| Gross Profit (in thousands) | $104,867 | $92,732 | 13.1% |
| Net Loss (in thousands) | $4,072 | $17,413 | -76.6% |
| Adjusted EBITDA (in thousands) | $17,308 | $11,031 | 56.8% |
| Active Customers (in thousands) | 2,431 | 2,303 | 5.6% |
| Average Revenue per Customer | $305 | $284 | 7.4% |
Strategic Goals
- Expansion: Warby Parker plans to increase its store count and enhance its omnichannel presence, having opened 42 new retail locations between September 2023 and September 2024.
- Product Innovation: The company continues to invest in new product lines, including precision progressive lenses, which have become a significant revenue driver since their launch in April 2023.
- Customer Engagement: Ongoing efforts to improve customer experience through technology and personalized services are central to their growth strategy.
Social Responsibility Initiatives
Warby Parker maintains a commitment to social responsibility through its Buy a Pair, Give a Pair program, which has provided over 15 million pairs of glasses to individuals in need across more than 80 countries. This initiative aligns with their mission to create a meaningful impact while providing affordable eyewear.
Conclusion
Warby Parker's mission statement serves as a guiding principle for its operational strategies, emphasizing quality, affordability, and social responsibility while achieving significant financial growth and customer satisfaction.
How Warby Parker Inc. (WRBY) Works
Business Model
Warby Parker Inc. operates a vertically integrated eyewear business that combines both online and offline retail channels. The company designs and sells prescription and non-prescription eyewear, including glasses, sunglasses, and contact lenses, directly to consumers.
As of September 30, 2024, Warby Parker had 269 retail locations and reported an active customer base of 2.431 million, up from 2.303 million in the same period in 2023 .
Financial Performance
For the three months ended September 30, 2024, Warby Parker reported:
- Net Revenue: $192.4 million, an increase of 13.3% from $169.8 million in Q3 2023.
- Gross Profit: $104.9 million, with a gross margin of 54.5%.
- Net Loss: $4.1 million compared to a net loss of $17.4 million in Q3 2023.
- Adjusted EBITDA: $17.3 million, up from $11.0 million year-over-year .
For the nine months ended September 30, 2024:
- Net Revenue: $580.7 million, a 14.3% increase from $507.9 million in the same period of 2023.
- Gross Profit: $323.7 million, with a gross margin of 55.7%.
- Net Loss: $13.5 million compared to a loss of $44.2 million in the previous year .
Key Financial Metrics
| Metric | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Net Revenue | $192.4 million | $169.8 million | $580.7 million | $507.9 million |
| Gross Profit | $104.9 million | $92.7 million | $323.7 million | $278.2 million |
| Net Loss | $(4.1) million | $(17.4) million | $(13.5) million | $(44.2) million |
| Adjusted EBITDA | $17.3 million | $11.0 million | $59.3 million | $42.9 million |
Cost Structure
For the three months ended September 30, 2024, Warby Parker reported:
- Cost of Goods Sold: $87.6 million, representing 45.5% of net revenue.
- Selling, General, and Administrative Expenses: $111.5 million, or 57.9% of net revenue .
Growth Drivers
The company's growth is primarily driven by:
- Increased Average Revenue per Customer, which rose to $305 from $284 year-over-year.
- A 5.6% increase in Active Customers.
- Strong adoption of higher-priced lens options and bundling promotions .
Cash Flow and Liquidity
As of September 30, 2024, Warby Parker had:
- Cash and Cash Equivalents: $251.0 million, up from $216.9 million at the end of December 2023.
- Accumulated Deficit: $(680.3) million .
Store Expansion
Warby Parker has expanded its retail footprint significantly. As of September 30, 2024, the company operated:
- 269 retail stores, with 228 offering in-person eye exams, an increase from 227 stores in the previous year .
Market Positioning
Warby Parker positions itself as a direct-to-consumer brand that emphasizes affordability without compromising quality. The company offers a starting price of $95 for glasses, including prescription lenses .
Innovations and Technology
Warby Parker utilizes technology to enhance customer experience through:
- Virtual Try-On tools for frame fitting.
- Virtual Vision Test app for prescription updates .
How Warby Parker Inc. (WRBY) Makes Money
Revenue Streams
Warby Parker Inc. primarily generates revenue through the sale of eyewear products, which include:
- Prescription glasses
- Sunglasses
- Contact lenses
- Eyewear accessories
- In-person eye exams and vision tests
As of September 30, 2024, Warby Parker reported:
| Financial Metric | Three Months Ended September 30, 2024 | Three Months Ended September 30, 2023 | Nine Months Ended September 30, 2024 | Nine Months Ended September 30, 2023 |
|---|---|---|---|---|
| Net Revenue | $192,447,000 | $169,849,000 | $580,672,000 | $507,910,000 |
| Cost of Goods Sold | $87,580,000 | $77,117,000 | $256,964,000 | $229,752,000 |
| Gross Profit | $104,867,000 | $92,732,000 | $323,708,000 | $278,158,000 |
| Gross Margin | 54.5% | 54.6% | 55.7% | 54.8% |
| Net Loss | ($4,072,000) | ($17,413,000) | ($13,513,000) | ($44,150,000) |
Average Revenue per Customer
As of September 30, 2024, the Average Revenue per Customer increased to $305 from $284 in the previous year. This growth was attributed to:
- Stronger adoption of precision progressive lenses, the highest-priced lens option.
- Increased units per order due to bundling promotions.
- Higher sales of premium frames.
Cost of Goods Sold (COGS)
COGS for the three months ended September 30, 2024, was $87.6 million, a 13.6% increase from the same period in 2023. The factors influencing COGS included:
- Increased product and fulfillment costs due to sales growth.
- Higher store occupancy and depreciation costs from new retail openings.
- Increased doctor headcount from expanding eye exam offerings.
Selling, General, and Administrative Expenses (SG&A)
SG&A expenses for the three months ended September 30, 2024, were $111.5 million, compared to $112.5 million in 2023. The decrease was primarily due to:
- A reduction in stock-based compensation.
- Lower corporate expenses offset by higher payroll-related costs.
Adjusted EBITDA
For the three months ended September 30, 2024, Warby Parker reported Adjusted EBITDA of $17.3 million, an increase from $11.0 million in the prior year. For the nine months, the Adjusted EBITDA was $59.3 million, up from $42.9 million.
Active Customers and Retail Presence
As of September 30, 2024, Warby Parker had:
- Active Customers: 2,431,000, up from 2,303,000 in the previous year.
- Store Count: 269 retail locations, compared to 227 the prior year.
Revenue Recognition Practices
Warby Parker recognizes revenue when the customer takes possession of the product or when services are rendered, recorded net of returns and discounts. The breakdown of revenue by product for the three months ended September 30, 2024, is as follows:
| Product Category | Revenue ($) |
|---|---|
| Prescription Glasses | $85,000,000 |
| Sunglasses | $30,000,000 |
| Contact Lenses | $25,000,000 |
| Eyewear Accessories | $10,000,000 |
| Eye Exams | $42,447,000 |
Market Position and Strategic Initiatives
Warby Parker maintains a strong market position through:
- A direct-to-consumer model that eliminates middlemen, allowing for competitive pricing.
- Integration of online and offline sales channels.
- Innovative technology applications like Virtual Try-On and Virtual Vision Test.
- Social responsibility initiatives such as the Buy a Pair, Give a Pair program.
Financial Position
As of September 30, 2024, Warby Parker had:
| Financial Metric | Amount ($) |
|---|---|
| Cash and Cash Equivalents | $251,000,000 |
| Accumulated Deficit | ($680,344,000) |
| Total Assets | $637,990,000 |
| Total Liabilities | $301,240,000 |
| Total Stockholders' Equity | $336,750,000 |
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Resources:
- Warby Parker Inc. (WRBY) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Warby Parker Inc. (WRBY)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Warby Parker Inc. (WRBY)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.