Warby Parker(US:WRBY)2025-05-08 21:10Financial Performance - For the three months ended March 31, 2025, the company generated net revenue of $223.8 million, compared to $200.0 million for the same period in 2024, representing an increase of 11.9%[116] - The company reported a gross profit of $126.0 million for Q1 2025, with a gross margin of 56.3%, slightly down from a gross profit of $113.5 million and a margin of 56.7% in Q1 2024[116] - Adjusted EBITDA for Q1 2025 was $29.2 million, compared to $22.4 million in Q1 2024, marking a year-over-year increase of 30.4%[116] - The Adjusted EBITDA Margin improved to 13.1% in Q1 2025 from 11.2% in Q1 2024, indicating enhanced operational efficiency[116] - Net revenue for the three months ended March 31, 2025, was $223.8 million, an increase of $23.8 million or 11.9% compared to $200.0 million in the same period of 2024[135] - Gross profit increased by $12.5 million, or 11.0%, to $126.0 million, with a gross margin of 56.3%, down from 56.7% in the previous year[137] - Selling, general, and administrative expenses rose by $4.9 million, or 4.2%, to $123.5 million, decreasing as a percentage of net revenue from 59.3% to 55.2%[139] - Interest and other income, net, decreased by $0.1 million, or 4.0%, to $2.5 million, representing 1.1% of net revenue[140] - Provision for income taxes increased significantly by $1.3 million, or 1,246.3%, to $1.5 million, reflecting the change in pre-tax income[141] - The company experienced a net income of $3.5 million in Q1 2025, a significant recovery from a net loss of $2.7 million in Q1 2024[151][152] Customer Metrics - Active Customers increased to 2,567 thousand as of March 31, 2025, up from 2,361 thousand in the same period last year, reflecting a growth of 8.7%[114] - Active customers increased by 8.7%, and average revenue per customer rose to $310 from $296 year-over-year, driven by strong adoption of higher-priced eyewear options[135] Retail Operations - The company operated 287 retail stores as of March 31, 2025, an increase from 245 stores a year earlier, representing a growth of 17.1%[114] - As of March 31, 2025, 247 out of the 287 retail stores offered in-person eye exams, enhancing the company's service offerings[119] Cash Flow and Liquidity - As of March 31, 2025, the company had cash and cash equivalents of $265.1 million, up from $254.2 million at the end of 2024[144] - The company entered into a $120.0 million revolving credit facility in February 2024, with an option to increase the borrowing capacity to $175.0 million[146] - The company expects operating losses to continue as it invests in business expansion, but believes current cash and credit will suffice for at least the next 12 months[145] - Net cash provided by operating activities for Q1 2025 was $29.4 million, an increase from $19.9 million in Q1 2024, reflecting a 47% year-over-year growth[151][152] - The company reported a net increase in cash and cash equivalents of $10.9 million for Q1 2025, compared to $3.5 million in Q1 2024, indicating improved liquidity[150] - As of March 31, 2025, the company had $265.1 million in cash and money-market funds, reflecting a strong liquidity position[164] Investment and Expenses - Net cash used in investing activities for Q1 2025 was $16.2 million, similar to $16.4 million in Q1 2024, primarily for property and equipment purchases to support growth[153][154] - Net cash used in financing activities for Q1 2025 was $2.3 million, primarily due to cash paid for shares withheld for taxes related to stock-based compensation[155] - Non-cash expenses in Q1 2025 included $12.3 million in stock-based compensation and $12.2 million in depreciation and amortization, contributing to the overall operating cash flow[151] Economic Environment and Risks - The overall economic environment, including elevated inflation and interest rates, continues to pose challenges to consumer spending and the company's growth prospects[111] - The company is focused on diversifying its supply chain to mitigate risks associated with tariffs and international trade policies, which may impact future financial results[112] - Inflationary pressures may impact raw materials and other costs, but the company believes the overall impact on its financial condition has been limited[165] - The company does not believe that foreign exchange rates have a material effect on its business, financial condition, or results of operations[163] Social Impact - The company has distributed glasses to over 15 million people globally through its Buy a Pair, Give a Pair program, positively impacting communities in more than 80 countries[109]