Warby Parker(WRBY) - 2024 Q4 - Annual Results

Financial Performance - Q4 net revenue increased by $28.8 million, or 17.8%, to$ 190.6 million compared to Q4 2023[7] - Full year net revenue increased by $101.6 million, or 15.2%, to$ 771.3 million compared to full year 2023[7] - Full year GAAP net loss was $20.4 million, and Q4 GAAP net loss was$ 6.9 million[7] - Net revenue for Q4 2024 reached $190,643 thousand, a 17.8% increase from$ 161,855 thousand in Q4 2023[31] - The net loss for Q4 2024 was $6,877 thousand, a significant improvement compared to a net loss of$ 19,047 thousand in Q4 2023[31] Customer Metrics - Active Customers increased by 7.8% to 2.51 million on a trailing 12-month basis[7] - Average Revenue per Customer increased by 6.8% to $307[7] Profitability and Margins - Full year Adjusted EBITDA Margin increased by 1.7 points to 9.5%[7] - Gross margin for Q4 was 54.1%, up from 53.8% in the prior year[7] - Adjusted EBITDA for the year ended December 31, 2024, was$ 73,111 thousand, representing a 39.6% increase from $52,352 thousand in 2023[35] - The adjusted EBITDA margin improved to 9.5% in 2024, compared to 7.8% in 2023[35] - Gross profit for the year ended December 31, 2024, was$ 426,834 thousand, up 16.8% from $365,224 thousand in 2023[31] - The adjusted gross profit for the year ended December 31, 2024, was$ 427,899 thousand, compared to $366,291 thousand in 2023, reflecting a growth of 16.8%[43] Expenses - Selling, general, and administrative expenses increased to$ 112,542 thousand, accounting for 59.0% of revenue, compared to $108,635 thousand and 67.1% in Q4 2023[41] - The adjusted selling, general, and administrative expenses for the year ended December 31, 2024, were$ 405,174 thousand, compared to $358,618 thousand in 2023, indicating an increase of 12.9%[43] - Stock-based compensation expense for the year ended December 31, 2024, was$ 1,065 thousand, slightly down from $1,067 thousand in 2023[43] Future Outlook - The company plans to open 45 new stores in 2025, including five shop-in-shops at Target locations[14] - For 2025, the company expects net revenue of$ 878 to $893 million, representing approximately 14% to 16% growth[14] - Adjusted EBITDA for 2025 is projected to be approximately$ 97 million at the midpoint of the revenue range[14] - The company plans to continue investing in new product development and market expansion strategies to drive future growth[44] - The implementation of a new ERP system is expected to enhance operational efficiency and support future scalability[44] Cash Flow and Assets - Cash and cash equivalents at the end of 2024 were $254,161 thousand, reflecting an increase of 17.1% from$ 216,894 thousand in 2023[33] - Net cash provided by operating activities for the year ended December 31, 2024, was $98,744 thousand, up from$ 60,991 thousand in 2023[43] - Free cash flow for the year ended December 31, 2024, was $34,712 thousand, significantly higher than$ 7,320 thousand in 2023[43] - Total assets increased to $676,490 thousand in 2024, up 16.5% from$ 580,312 thousand in 2023[29] - Total liabilities rose to $336,417 thousand in 2024, an increase of 20.8% from$ 278,525 thousand in 2023[29] Inventory and Cost of Goods Sold - Inventory decreased to $52,345 thousand in 2024, down 15.9% from$ 62,234 thousand in 2023[29] - For the three months ended December 31, 2024, the cost of goods sold was $87,517 thousand, representing 45.9% of revenue, compared to$ 74,789 thousand and 46.2% in the same period of 2023[41] - Gross profit for the same period was $103,126 thousand, which is 54.1% of revenue, an increase from$ 87,066 thousand and 53.8% in Q4 2023[41]