Warby Parker Inc. (NYSE: WRBY) (the “Company”), a direct-to-consumer lifestyle brand focused on a vision for all, today announced financial results for the quarter ended September 30, 2021.
Third Quarter 2021 Financial Results
For the third quarter of 2021, compared to the third quarter of 2020:
• Net revenue increased $33.3 million, or 32.0%, to $137.4 million.
• Active Customers increased by 395,000, or 23%, to 2.15 million.
• Gross profit dollars increased 24.5% to $79.7 million.
• Gross margin was 58.0% compared to 61.5% in the prior year, primarily driven by increased penetration of contact lenses versus the prior year, reflecting Warby Parker’s strategy to grow its contact lens offering. Gross margin also includes approximately 70 basis points of stock-based compensation expense related to the Company’s direct listing in 2021. In addition, the gross margin for the third quarter of 2020 includes approximately 90 basis
points of improvement related to a tariff rebate received.
• Selling, general and administrative expenses (“SG&A”) increased $66.3 million to $171.6 million, primarily driven by $65.0 million in stock-based compensation expense, $23.9 million in direct listing expenses, and $7.8 million in expense from a stock donation to the Warby Parker Impact Foundation.
Excluding these items, as well as $42.4 million of stock-based compensation expenses incurred in the third quarter of 2020, SG&A increased $12.0 million, on an adjusted basis. On this basis(1), SG&A as a percentage of revenue improved 590 basis points, from 60.5% to 54.6%, primarily as a result of net revenue growth outpacing SG&A expense growth as Warby Parker maintained disciplined management of its expense profile.
• Net loss increased $49.5 million to $91.1 million, primarily as a result of the increase in SG&A.
“Every day, we strive to design high-quality products, deliver remarkable customer experiences, and develop innovative technologies that help the world see. Our strong third-quarter results reflect our commitment to achieving these goals while delivering ambitious, long-term sustainable growth” said Co-Founder and Co-CEO Dave Gilboa.
About Warby Parker
Warby Parker (NYSE: WRBY) was founded in 2010 with a mission to inspire and impact the world with vision, purpose, and style–without charging a premium for it. Headquartered in New York, City, the co-founder-led lifestyle brand pioneers ideas, designs products, and develops technologies that help people see, from designer-quality prescription glasses (starting at $95) and contacts to eye exams and vision tests available online and in more than 150 retail stores across the U.S. and Canada.
Warby Parker aims to demonstrate that businesses can scale, do well, and do good in the world.
Ultimately, the brand believes in vision for all, which is why for every pair of glasses or sunglasses sold, they distribute a pair to someone in need through their Buy a Pair, Give a Pair program. To date, Warby Parker has worked alongside its nonprofit partners to distribute more than eight million glasses to people in need.
Financial Statement:
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Warby Parker Inc. and Subsidiaries |
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Condensed Consolidated Statements of Operations (Unaudited) |
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(Amounts in thousands, except share and per share data) |
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Three Months Ended September 30, |
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Nine Months Ended September 30, |
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2021 |
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2020 |
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2019 |
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2021 |
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2020 |
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2019 |
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Net revenue |
$ |
137,373 |
|
|
|
$ |
104,091 |
|
|
|
$ |
94,735 |
|
|
$ |
407,906 |
|
|
|
$ |
280,881 |
|
|
|
$ |
276,842 |
|
|
|
Cost of goods sold |
57,709 |
|
|
|
40,111 |
|
|
|
37,874 |
|
|
166,407 |
|
|
|
114,125 |
|
|
|
107,066 |
|
|
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Gross profit |
79,664 |
|
|
|
63,980 |
|
|
|
56,861 |
|
|
241,499 |
|
|
|
166,756 |
|
|
|
169,776 |
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|
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|
|
|
|
|
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Selling, general, and administrative expenses |
171,643 |
|
|
|
105,315 |
|
|
|
55,382 |
|
|
339,264 |
|
|
|
217,271 |
|
|
|
157,916 |
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|
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(Loss) income from operations |
(91,979 |
) |
|
|
(41,335 |
) |
|
|
1,479 |
|
|
(97,765 |
) |
|
|
(50,515 |
) |
|
|
11,860 |
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|
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|
|
|
|
|
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Interest and other (loss) income, net |
(146 |
) |
|
|
(81 |
) |
|
|
58 |
|
|
(452 |
) |
|
|
(626 |
) |
|
|
1,560 |
|
|
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|
|
|
|
|
|
|
|
|
|
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|
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(Loss) income before income taxes |
(92,125 |
) |
|
|
(41,416 |
) |
|
|
1,537 |
|
|
(98,217 |
) |
|
|
(51,141 |
) |
|
|
13,420 |
|
|
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Provision for income taxes |
(1,052 |
) |
|
|
196 |
|
|
|
154 |
|
|
151 |
|
|
|
478 |
|
|
|
1,562 |
|
|
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Net (loss) income |
$ |
(91,073 |
) |
|
|
$ |
(41,612 |
) |
|
|
$ |
1,383 |
|
|
$ |
(98,368 |
) |
|
|
$ |
(51,619 |
) |
|
|
$ |
11,858 |
|
|
|
|
|
|
|
|
|
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Deemed dividend upon redemption of redeemable convertible preferred stock |
$ |
— |
|
|
|
$ |
— |
|
|
|
$ |
— |
|
|
$ |
(13,137 |
) |
|
|
$ |
— |
|
|
|
$ |
(56,826 |
) |
|
|
Net (loss) income attributable to common stockholders |
$ |
(91,073 |
) |
|
|
$ |
(41,612 |
) |
|
|
$ |
1,383 |
|
|
$ |
(111,505 |
) |
|
|
$ |
(51,619 |
) |
|
|
$ |
(44,968 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Net (loss) income per share attributable to common stockholders, basic and diluted |
$ |
(1.45 |
) |
|
|
$ |
(0.78 |
) |
|
|
$ |
0.01 |
|
|
$ |
(1.96 |
) |
|
|
$ |
(0.98 |
) |
|
|
$ |
(0.86 |
) |
|
|
Weighted average shares used in computing net (loss) income per share attributable to common stockholders, basic and diluted |
62,887,161 |
|
|
|
53,179,523 |
|
|
|
52,453,537 |
|
|
56,985,960 |
|
|
|
52,818,555 |
|
|
|
52,386,085 |
|
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