NYSE$WRBY

Warby Parker Inc · Q1 2023 earnings

Q1 2023 earnings · · Investor relations

Briefing

Achieved revenue growth and improved net loss.

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.

Headline financials

Total Revenue

$172M

Previous: $153M+12.2%
EPS (adj)

$0.06

Previous: -$0.30+120.0%
Adjusted EBITDA margin

10.3%

No prior period
Capital Expenditures

-$12.4M

Previous: -$16.1M+22.9%
Free Cash Flow

-$23.2M

Previous: -$50.2M+53.8%
Net Income

-$10.8M

Previous: -$34.1M+68.3%
Operating Income

-$12.4M

Previous: -$33.7M+63.2%
Gross Profit

$94.8M

Previous: $89.6M+5.7%
Cash & Equivalents

$204M

Previous: $230M-11.3%
Total Assets

$558M

Previous: $545M+2.4%
Stock-Based Comp

$19.8M

Previous: $27.1M-27.1%

Revenue & EPS history

Warby Parker · Revenue · Quarterly

$172M

Q1 2023+12.2%vs Q1 2022
Beat estimate in 10 of 15 quarters(67%)
ActualEstimate

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.

Tailwinds

  • 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.

Headwinds

  • 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.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2023

Historical avgQ1 2023

+4.7%

Avg return

Earnings day

+7.9%

Avg return

5 days after

-1.7%

Avg return

30 days after

70%

16 / 23 earnings

Positive

+24.9%

Q3 2022

Best reaction

-29.0%

Q3 2023

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+23.1%+21.5%+3.1%
Q4 2025+17.2%+26.2%-6.6%
Q3 2025-11.1%-8.8%-1.5%
Q1 2025+3.0%+14.4%+33.5%
Q4 2024+2.3%-2.3%-21.4%
Q3 2024+2.8%+11.9%+25.4%
Q2 2024-6.4%-7.5%-6.8%
Q1 2024+18.9%+25.2%+33.7%
Q4 2023-15.5%-17.0%-9.5%
Q3 2023-29.0%-26.9%-25.3%
Q2 2023-6.3%-11.3%-17.2%
Q1 2023-4.3%-6.5%-0.7%
Q4 2022-6.2%-4.5%-20.5%
Q3 2022+24.9%+42.1%+24.7%
Q2 2022+21.4%+26.4%+12.6%
Q1 2022+0.2%-8.7%-19.5%
Q4 2019+10.1%+22.6%+1.7%
Q2 2021+10.1%+22.6%+1.7%
Q4 2021+15.8%+17.5%+5.1%
Q3 2020+9.5%+11.2%-12.9%
Q1 2021+9.5%+11.2%-12.9%
Q3 2021+9.5%+11.2%-12.9%
Q4 2020+9.5%+11.2%-12.9%
Q2 2020
Q1 2020

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