Warby Parker (WRBY) Q2 2024 earnings summary

Executive summary

• Net revenue for Q2 2024 grew 13.3% year-over-year to $188.2 million, with adjusted EBITDA up 38.2% to $19.6 million (10.4% margin), and gross margin expanding to 56.0%–56.1%.

• Active customers increased 4.5% to 2.39 million, with average revenue per customer up 8.8% to $302.

• Net loss narrowed to $6.8 million from $15.9 million in Q2 2023.

• Opened 11 net new stores in Q2, ending with 256 locations, and achieved the fourth consecutive quarter of active customer growth.

• Continued investment in technology, retail expansion, marketing, and social impact initiatives.

Financial highlights

• Adjusted EBITDA margin improved to 10.4% in Q2 2024 from 8.5% a year ago; free cash flow was $14.0 million in Q2.

• Gross profit dollars increased 16% year-over-year to $105.4 million, with gross margin at 56.0%–56.1%.

• Adjusted SG&A was $98.2 million (52.2% of revenue); GAAP SG&A was $114.3 million (60.8% of revenue).

• Net cash from operating activities for the first half of 2024 was $51.6 million.

• Ended Q2 with $238 million in cash and an undrawn $120 million credit facility.

Outlook and guidance

• FY 2024 net revenue guidance raised to $757–$762 million (13–14% growth), with adjusted EBITDA expected at $72.5 million (9.5% margin).

• Q3 2024 revenue expected at $188–$190 million (11–12% growth), with adjusted EBITDA of ~$17 million (9% margin).

• Gross margin expected to remain in the mid-50s percent range.

• On track to open 40 new stores in 2024.