Warby Parker : 3Q24 Earnings Presentation
WRBY
THIRD QUARTER 2024 EARNINGS REPORT
Speakers:
DAVE GILBOA | Co-Founder & Co-CEO
NEIL BLUMENTHAL | Co-Founder & Co-CEO
STEVE MILLER | SVP & Chief Financial Officer
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 financial performance, including expectations regarding achieving profitability, delivering stakeholder value, growing market share, and our GAAP and non-GAAP guidance for the quarter and year ending December 31, 2024; expectations regarding the number of new store openings during the year ending December 31, 2024; management's plans, priorities, initiatives, and strategies; and expectations regarding growth of our business. Forward-looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified. In some cases, you can identify forward-looking statements because they contain words such as "anticipate," "believe," "contemplate," "continue," "could," "estimate," "expect," "intend," "may," "plan," "potential," "predict," "project," "should," "target," "toward," "will," or "would," or the negative of these words or other similar terms or expressions. You should not put undue reliance on any forward-looking statements. Forward-looking statements are based on information available at the time those statements are made and are based on current expectations, estimates, forecasts, and projections as well as the beliefs and assumptions of management as of that time with respect to future events. These statements are subject to risks and uncertainties, many of which involve factors or circumstances that are beyond our control, that could cause actual performance or results to differ materially from those expressed in or suggested by the forward-looking statements. Additional information regarding these and other risks and uncertainties is included in our SEC filings, including our Annual Report on Form 10-K for the year ended December 31, 2023, and our Quarterly Reports on Form 10-Q. Forward-looking statements should not be read as a guarantee of future performance or results. Except as required by law, we do not undertake any obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future developments, or otherwise.
In addition, this presentation contains certain "non-GAAP financial terms." The non-GAAP measures are presented for supplemental informational purposes only. Definitions and reconciliations to the most directly comparable financial measure calculated and presented in accordance with GAAP are provided in the appendix to this presentation. Although we provide forecasts for certain non-GAAP financial measures, we are not able to forecast the most directly comparable measures calculated and presented in accordance with GAAP without unreasonable efforts due to the uncertainty and potential variability of the reconciling items.
SINCE OUR
FOUNDING, WE'VE PIONEERED IDEAS, DESIGNED PRODUCTS, AND DEVELOPED TECHNOLOGIES THAT HELP PEOPLE SEE.
(1) As of 9/30/2024. This includes 5 stores in Canada.
$192M 13.3% 5.6% $305
54.6% $17.3M 9.0% $13.1M
$148.8
$169.8
$192.4
14.2% 13.3%
8.3%
2,262 2,303 2,431
$258 $284 $305
190 227 269
$580.7
$451.6 $507.9
● Q3'24 net revenue growth of 13.3% vs. Q3'23
● TTM Active Customers up 5.6% vs. Q3'23
● Average Revenue per Customer up 7.5% to $305
● Opened 13 net new stores in Q3'24, ending with
269 stores
● September YTD 2024 net revenue growth of
14.3% vs. September YTD 2023
10.7%
12.5% 14.3%
● Opened 32 net new stores through September
2024, ending with 269 stores
$200.0
2.43
$188.2
$192.4
2.36
2.39
$172.0
$166.1
$169.8
$161.9
2.33
5.6%
2.29
2.28
2.30
16.3%
3.2%
4.5%
14.2%
2.5%
2.5%
12.2%
13.3%
13.3%
1.8%
11.0%
10.5%
1.2%
$17.7
$22.4
$19.6
$270
$277
$284
$287
$296
$302
$305
$14.2
$17.3
11.2%
10.3%
$11.0
10.4%
9.0%
$9.4
9.2%
10.0%
9.3%
9.6%
8.8%
8.5%
6.5%
5.8%
8.4%
7.5%
(1) Adjusted EBITDA is a non-GAAP measure. See the appendix for definitions and reconciliations to the nearest GAAP measures.
97% 98% 100% 105% 101%
75%
75%
77% 75%
74%
73%
48%
49%
50% 50%
47%
49%
51%
51%
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 9/30/2024 are presented.
$17.3
$11.9
8.0%
$11.0
6.5%
9.0%
●
Adjusted EBITDA Margin(1) of 9.0%, up 2.5 pts from Q3'23
●
Adjusted Gross Margin(1) of 54.6% in Q3'24 decreased
0.2 pts from 54.8% in Q3'23
56.9%
10.0%
55.3%
$18.6 4.1%
57.8%
14.7%
59.1%
54.8% 54.6%
11.6% 12.3%
55.0% 52.3%
$59.3
$42.9
8.5% 10.2%
54.9% 55.9%
11.4% 12.2%
52.6% 52.0%
●
Marketing as a percent of revenue of 12.3%, up 0.7 pts
from Q3'23
●
Adjusted SG&A(1) as a percent of revenue of 52.3%, down
2.7 points compared to Q3'23
●
Adjusted EBITDA Margin(1) of 10.2%, up 1.7 pts from
September YTD 2023
●
Adjusted Gross Margin(1) of 55.9% increased 1.0 pts
from 54.9% in September YTD 2023
●
Marketing as a percent of revenue of 12.2%, up 0.8 pts
from Q3'23
●
Adjusted SG&A(1) as a percent of revenue of 52.0%
decreased by 0.6 pts compared to 52.6% in September YTD
2023
(1) Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Gross Margin, and Adjusted SG&A are non-GAAP measures. See the appendix for definitions and reconciliations to the nearest GAAP measures.
Disclaimer
Warby Parker Inc. published this content on November 07, 2024, and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on November 07, 2024 at 14:11:32.581.