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Mar 31, 2023
Warby Parker Q1 2023 Earnings Report
Achieved revenue growth and improved net loss.
Key Takeaways
Warby Parker reported a solid start to 2023 with a 12.2% increase in net revenue year over year to $172.0 million. The company also improved its GAAP net loss by $23.3 million to $10.8 million and increased adjusted EBITDA by $17.0 million to $17.7 million.
Net revenue increased 12.2% year over year to $172.0 million.
GAAP net loss improved $23.3 million to $10.8 million.
Adjusted EBITDA increased $17.0 million to $17.7 million, with adjusted EBITDA margin improving to 10.3%.
Average Revenue per Customer increased 8.4% year over year to $270.
Warby Parker
Warby Parker
Forward Guidance
Warby Parker is maintaining its full year 2023 guidance, expecting net revenue of $645 to $660 million and adjusted EBITDA of approximately $51.5 million, with plans to open 40 new stores.
Positive Outlook
- Net revenue of $645 to $660 million, representing growth of 8% to 10% versus full year 2022.
- Adjusted EBITDA of approximately $51.5 million, or adjusted EBITDA margin of approximately 7.9%.
- 40 new store openings bringing the total projected store count at year end to approximately 240.
- Disciplined and balanced approach to driving growth and profitability.
- Well positioned to continue advancing the business in 2023.
Challenges Ahead
- Cautious about near-term trends given the uncertain macroeconomic outlook.
- Macroeconomic headwinds continue to pressure the market.
- Decline in gross margin was primarily driven by the impact of the growth in store count driving higher store occupancy and depreciation costs.
- Increase in salary and benefit costs associated with optometrists as we scale our eye exam offering across our fleet.
- Increased penetration of contact lenses, which carry lower gross margins than eyeglasses.