NYSE$WRBY

Warby Parker Inc · Q3 2021 earnings

Q3 2021 earnings · · Investor relations

Briefing

Warby Parker's revenue increased and active customers grew, while the company experienced a net loss due to increased expenses.

Warby Parker reported a 32% increase in revenue to $137.4 million and a 23% increase in active customers to 2.15 million. However, the company experienced a net loss of $91.1 million primarily due to a significant increase in selling, general, and administrative expenses.

  • Revenue increased by 32.0% to $137.4 million.
  • Active customers increased by 23% to 2.15 million.
  • Gross profit increased by 24.5% to $79.7 million.
  • Net loss increased to $91.1 million due to higher SG&A expenses.

Headline financials

Total Revenue

$137M

Previous: $281M-51.1%
EPS (adj)

$0.03

Previous: -$0.98+103.1%
Adjusted EBITDA margin

8.1%

No prior period
Capital Expenditures

-$34M

Previous: $14.7M-330.7%
Free Cash Flow

-$125M

Previous: -$1.36M-9084.4%
Net Income

-$91.1M

Previous: -$41.6M-118.9%
Operating Income

-$92M

Previous: -$41.3M-122.5%
Gross Profit

$79.7M

Previous: $64M+24.5%
Cash & Equivalents

$266M

Previous: $299M-11.1%
Total Assets

$460M

No prior period
Stock-Based Comp

$64.3M

Previous: $43.7M+47.0%

Revenue & EPS history

Warby Parker · Revenue · Quarterly

$137M

Q3 2021-51.1%vs Q3 2020
Beat estimate in 5 of 9 quarters(56%)
ActualEstimate

Forward guidance

Warby Parker expects net revenue of $539.5 million to $542.0 million and an adjusted EBITDA margin of approximately 4% to 5% for the fiscal year 2021. They also plan to open 35 new stores.

Tailwinds

  • Net revenue of $539.5 million to $542.0 million, representing growth of 37% to 38% versus fiscal year 2020
  • Net revenue growth of 46% versus fiscal year 2019
  • Adjusted EBITDA margin of approximately 4% to 5%
  • 35 new store openings
  • Total store count to 161

Headwinds

  • Guidance does not incorporate future unknown direct or indirect impacts from further resurgences in COVID-19, including the Delta variant.
  • Risks related to managing future growth effectively.
  • Potential increases in component and shipping costs and changes in supply chain.
  • Ability to compete successfully.
  • Ability to manage inventory balances and shrinkage.

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 Q3 2021

Historical avgQ3 2021

+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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