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 nearly 40% to $19.6 million and gross margin expanding to 56.0% from 54.6% a year ago.

• Active customers increased 4.5% to 2.39 million, with average revenue per customer up 8.8% to $302; the company achieved its fourth consecutive quarter of active customer growth.

• Retail and e-commerce channels both saw strong growth, with retail revenue up 18% and e-commerce posting its best quarter since Q1 2021.

• The company opened 11 net new stores in Q2, ending with 256 locations, and expanded in-person eye exam offerings to 215 stores.

• Strategic investments in marketing, technology, store expansion, and social impact initiatives continued to drive performance.

Financial highlights

• Adjusted EBITDA margin reached 10.4% in Q2 2024, up from 8.5% a year ago, and free cash flow was $14.0 million for the quarter.

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

• Six-month net revenue was $388.2 million, up 14.8% year-over-year, and adjusted EBITDA for the first half was $42.0 million.

• Adjusted SG&A was $98.2 million, or 52.2% of revenue, with marketing spend at 11.9% of revenue.

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

Outlook and guidance

• Full-year 2024 revenue guidance raised to $757–$762 million, representing 13–14% year-over-year growth.

• Adjusted EBITDA guidance increased to $72.5 million at the midpoint, with a 9.5% margin.

• Q3 2024 revenue expected between $188–$190 million, with adjusted EBITDA of approximately $17 million and a 9% margin.

• Gross margin expected to remain stable in the mid-50s as a percent of revenue.

• On track to open 40 new stores in 2024.