On February 27, 2025, Warby Parker Inc (WRBY, Financial) released its 8-K filing detailing the financial results for the fourth quarter and full year of 2024. The company, known for its designer prescription glasses and contacts, reported a significant increase in net revenue, surpassing analyst estimates, despite posting a net loss for the quarter.
Company Overview
Warby Parker Inc is a direct-to-consumer lifestyle brand that designs and develops eyewear products, including prescription glasses and contacts, and offers eye exams and vision tests. The company generates revenue through sales of eyewear products, optical services, and accessories, utilizing both physical stores and digital platforms.
Performance and Challenges
Warby Parker reported a 17.8% year-over-year increase in fourth-quarter net revenue, reaching $190.6 million, which exceeded the analyst estimate of $187.64 million. However, the company recorded a GAAP net loss of $6.9 million for the quarter, an improvement from the previous year's loss of $19.0 million. The company's performance underscores its ability to grow revenue while managing operational challenges, such as increased payroll costs and investments in marketing.
Financial Achievements
For the full year 2024, Warby Parker achieved a 15.2% increase in net revenue, totaling $771.3 million. The company's gross margin improved to 55.3%, driven by higher-margin product sales and operational efficiencies. These achievements are crucial for Warby Parker as it continues to expand its market presence in the Medical Devices & Instruments industry.
Key Financial Metrics
Warby Parker's active customer base grew by 7.8% to 2.51 million, with an average revenue per customer increase of 6.8% to $307. The company's Adjusted EBITDA for the year rose by $20.8 million to $73.1 million, with an Adjusted EBITDA Margin of 9.5%. These metrics highlight the company's focus on enhancing customer engagement and operational efficiency.
Income Statement Highlights
| Metric | Q4 2024 | Q4 2023 |
|---|---|---|
| Net Revenue | $190.6 million | $161.9 million |
| Gross Margin | 54.1% | 53.8% |
| GAAP Net Loss | $(6.9) million | $(19.0) million |
Balance Sheet and Cash Flow
Warby Parker ended 2024 with $254.2 million in cash and cash equivalents, up from $216.9 million in 2023. The company generated $98.7 million in net cash from operating activities, reflecting its strong cash flow management. The increase in cash reserves positions Warby Parker well for future investments and expansion.
Strategic Developments and Outlook
Warby Parker announced a partnership with Target Corporation to open five shop-in-shops in 2025, aiming to broaden its customer reach. The company plans to open 45 new stores in 2025, including these Target locations. Warby Parker's guidance for 2025 projects net revenue growth of 14% to 16%, with an Adjusted EBITDA of approximately $97 million.
In 2024, we delivered our second consecutive year of accelerated growth, increasing our market share and making meaningful progress on our strategic priorities, while also growing Adjusted EBITDA 40% year over year," said Chief Financial Officer Steve Miller.
Warby Parker's strategic initiatives and financial performance indicate a strong foundation for continued growth, despite the challenges of managing costs and expanding its retail footprint. The company's focus on enhancing customer experiences and operational efficiency will be key to sustaining its competitive edge in the eyewear industry.
Explore the complete 8-K earnings release (here) from Warby Parker Inc for further details.
