Warby Parker(WRBY)2024-11-07 11:48Revenue Growth - Net revenue increased 13.3% year over year to $192.4 million, up $22.6 million from the prior year period[4] - For the full year 2024, the company raised its revenue guidance to $765 to $768 million, representing growth of approximately 14% to 15% versus full year 2023[12] - Total net revenue for the three months ended September 30, 2024, was $192,447,000, representing a 13.3% increase from $169,849,000 in the same period of 2023[34] Customer Metrics - Active Customers increased 5.6% to 2.43 million on a trailing 12-month basis, while Average Revenue per Customer increased 7.5% to $305[4] Profitability and Loss - GAAP net loss improved by $13.3 million to $4.1 million, primarily due to leveraging the expense base on higher revenue[9] - The company reported a net loss of $4,072,000 for the three months ended September 30, 2024, compared to a net loss of $17,413,000 for the same period in 2023, reflecting a significant improvement[34] EBITDA Performance - Adjusted EBITDA increased $6.3 million to $17.3 million, with an Adjusted EBITDA Margin of 9.0%, up 2.5 points[10] - Adjusted EBITDA for 2024 is projected to be approximately $73 million at the midpoint of the revenue range, based on an Adjusted EBITDA Margin of 9.5%[12] - Adjusted EBITDA for the three months ended September 30, 2024, was $17,308,000, with an adjusted EBITDA margin of 9.0%[38] Cash Flow - Free Cash Flow for the quarter was $13.1 million, with net cash provided by operating activities of $27.3 million[4] - The company experienced a net cash provided by operating activities of $78,832,000 for the nine months ended September 30, 2024, compared to $47,326,000 in the same period of 2023, an increase of 66.6%[36] - Net cash provided by operating activities for the three months ended September 30, 2024, was $27,282 thousand, an increase from $19,931 thousand in the same period last year[43] - Free cash flow for the three months ended September 30, 2024, was $13,059 thousand, compared to $4,443 thousand in the prior year[43] Expenses - Selling, general, and administrative expenses (SG&A) were $111.5 million, representing 57.9% of revenue, down from 66.2% in the prior year[8] - Selling, general, and administrative expenses for the three months ended September 30, 2024, were $111,480 thousand, accounting for 57.9% of revenue, compared to 66.2% in the same period last year[41] - Selling, general, and administrative expenses for the nine months ended September 30, 2024, were $344,404 thousand, which is 59.3% of revenue, down from 64.7% in the previous year[41] - The adjusted selling, general, and administrative expenses for the nine months ended September 30, 2024, were $302,166 thousand, reflecting a decrease from $267,261 thousand in the same period last year[43] Asset and Equity Growth - Cash and cash equivalents increased to $251,032,000 as of September 30, 2024, from $216,894,000 at the end of 2023, marking a growth of 15.7%[36] - Total assets rose to $637,990,000 as of September 30, 2024, compared to $580,312,000 at the end of 2023, an increase of 9.9%[32] - The company’s total stockholders' equity increased to $336,750,000 as of September 30, 2024, up from $301,787,000 at the end of 2023, representing an increase of 11.6%[32] Inventory and Cost of Goods Sold - Inventory decreased to $52,766,000 as of September 30, 2024, from $62,234,000 at the end of 2023, a reduction of 15.2%[34] - Cost of goods sold for the three months ended September 30, 2024, was $87,580 thousand, compared to $77,117 thousand for the same period in 2023, representing an increase of 6.4%[41] - The company reported a total of $256,964 thousand in cost of goods sold for the nine months ended September 30, 2024, compared to $229,752 thousand for the same period in 2023, indicating a year-over-year increase of 11.9%[41] Gross Profit and Margin - Gross margin was 54.5%, slightly down from 54.6% in the prior year, primarily due to sales growth of contact lenses and increased doctor headcount[7] - Gross profit for the three months ended September 30, 2024, was $104,867 thousand, with a gross margin of 54.5%, slightly down from 54.6% in the prior year[41] - Adjusted gross profit for the three months ended September 30, 2024, was $105,148 thousand, reflecting a gross margin of 54.6%[43] Store Expansion - Opened 13 net new stores during the quarter, ending Q3 with a total of 269 stores[5] Strategic Initiatives - The company has implemented new strategies including stock-based compensation adjustments and ERP system implementation costs, impacting overall expenses[43]