NYSE$WRBY

Warby Parker Inc · Q4 2024 earnings

Q4 2024 earnings · · Before market open · Investor relations

Briefing

Warby Parker's Q4 2024 earnings were announced, revealing increased net revenue and improved profitability.

Warby Parker reported a 17.8% increase in net revenue for Q4 2024, reaching $190.6 million. The company's GAAP net loss improved to $6.9 million, and Adjusted EBITDA Margin increased to 7.3%. They also announced a partnership with Target Corporation to launch Warby Parker shop-in-shops in select Target locations in 2025.

  • Net revenue increased by 17.8% year-over-year to $190.6 million.
  • Gross margin improved to 54.1% compared to 53.8% in the prior year.
  • GAAP net loss improved by $12.2 million to $6.9 million.
  • Adjusted EBITDA increased by $4.4 million to $13.8 million, with Adjusted EBITDA Margin rising to 7.3%.

Headline financials

Total Revenue

$191M

Previous: $162M+17.8%
EPS (adj)

-$0.06

Previous: -$0.01-500.0%
Gross margin

54.1%

No prior period
Adjusted EBITDA

$13.8M

No prior period
Adjusted EBITDA margin

7.3%

No prior period
Net Income

-$6.9M

Previous: -$19M+63.8%
Operating Income

-$9.42M

Previous: -$21.6M+56.3%
Gross Profit

$103M

Previous: $87.1M+18.4%

Revenue & EPS history

Warby Parker · Revenue · Quarterly

$191M

Q4 2024+17.8%vs Q4 2023
Beat estimate in 10 of 15 quarters(67%)
ActualEstimate

Forward guidance

Warby Parker anticipates net revenue between $878 to $893 million for the full year 2025, representing approximately 14% to 16% growth versus full year 2024. Adjusted EBITDA is projected to be approximately $97 million, equating to an Adjusted EBITDA Margin of approximately 11%. The company plans to open 45 new stores, including five shop-in-shops at select Target locations.

Tailwinds

  • Net revenue growth of 14% to 16% is expected.
  • Adjusted EBITDA Margin is anticipated to be approximately 11%.
  • 45 new store openings are planned.
  • Partnership with Target Corporation to expand reach.
  • Focus on sustainable and profitable growth.

Headwinds

  • Guidance is based on management's expectations as of the press release date.
  • Forward-looking statements are subject to risks and uncertainties.
  • Potential variability of stock-based compensation and taxes.
  • Overall economic conditions and consumer spending could impact results.
  • Reliance on third parties for products, operations, and infrastructure.

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 Q4 2024

Historical avgQ4 2024

+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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