Philanthropic initiatives ensured that those most in need received care at no cost. At the same time, long-term access was strengthened by training entrepreneurs to operate rural optical points, supported by tele-refraction technology to overcome gaps in specialist availability and reduce time-to-delivery in remote settings. Globally, an estimated 2.7 billion people live with uncorrected poor vision, mostly from refractive errors that can be easily corrected with eyeglasses. A disproportionately high number ...

Financial Data and Key Metrics Changes - In Q4 2024, revenue reached $190.6 million, up 17.8% year-over-year, with retail revenue increasing 23.9% and e-commerce revenue increasing 5.3% [49] - For the full year 2024, revenue was $771.3 million, up 15.2% year-over-year, with retail revenue increasing 21.4% and e-commerce increasing 3% [49] - Active customers increased to 2.51 million, representing a 7.8% increase on a trailing 12-month basis [50] - Average revenue per customer rose to $307, up 6.8% year-over-year [50] - Adjusted EBITDA for Q4 was $13.8 million, with a margin of 7.3%, compared to $9.4 million or 5.8% in the prior year [65] - Full year adjusted EBITDA was $73.1 million, representing a margin of 9.5%, up from $52.4 million or 7.8% in 2023 [65] Business Line Data and Key Metrics Changes - Glasses revenue grew approximately 15% year-over-year in Q4 2024, up from 7% in Q4 2023, and 12% for the full year, up from 8% in 2023 [51][24] - Contacts and exams saw significant growth, with contacts increasing 36% year-over-year and exams growing 41% [51] - The insurance business expanded to cover over 30 million lives, enhancing customer acquisition and driving higher value purchases [21] Market Data and Key Metrics Changes - The U.S. optical market is estimated at $68 billion, with a significant portion of customers underserved due to structural barriers [13] - The incidence of myopia is rising, with projections indicating that over half of the world's population will need corrective vision by 2050 [12] Company Strategy and Development Direction - The company plans to open 45 new stores in 2025, focusing on existing markets to drive brand awareness [17][34] - Marketing spend is expected to remain in the low teens as a percentage of revenue, with a focus on customer-led growth [15][71] - The company aims to enhance its omnichannel model and customer experience, with a significant emphasis on retail growth [31] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in sustaining revenue growth and adjusted EBITDA margins, despite a conservative outlook due to macroeconomic conditions [68] - The integration of insurance partnerships is expected to drive long-term customer acquisition and revenue growth [84] Other Important Information - The company generated $35 million in free cash flow in 2024, up from $7 million in 2023, and ended with approximately $254 million in cash [66] - The company plans to maintain a disciplined approach to operating expenses, with expectations for adjusted SG&A to decrease as a percentage of revenue [71] Q&A Session Summary Question: Customer acquisition initiatives and revenue growth balance - Management noted that customer acquisition efforts have led to six consecutive quarters of accelerating active customer growth, with expectations for continued strong growth in 2025 [78] Question: Impact of insurance partnership on customer acquisition - Management indicated that previous integrations have shown increasing contributions over time, and early trends from the Versant integration are positive [82] Question: Traffic expectations and new store contributions - Management expects moderate improvement in store productivity and has not embedded a specific guide for traffic but remains optimistic about overall trends [90] Question: Non-marketing SG&A expense leverage - Management believes that 100 to 200 basis points of margin expansion is sustainable, with opportunities for future leverage in staffing and corporate expenses [109] Question: Strategy regarding smart glasses - Management is monitoring developments in the smart glasses market and believes they are well-positioned to enter this space if they choose to do so [112]