In This Article:
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Q4 Revenue: $190.6 million, up 17.8% year-over-year.
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Full Year 2024 Revenue: $771.3 million, up 15.2% year-over-year.
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Retail Revenue Growth: 23.9% year-over-year in Q4; 21.4% for the full year.
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E-commerce Revenue Growth: 5.3% year-over-year in Q4; 3% for the full year.
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Active Customers: 2.51 million, up 7.8% year-over-year.
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Average Revenue per Customer: $307, up 6.8% year-over-year.
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Glasses Growth: 15% year-over-year in Q4; 12% for the full year.
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Contacts Growth: 30% year-over-year in Q4; 36% for the full year.
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Exams Growth: 45% year-over-year in Q4; 41% for the full year.
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Store Count: 276 stores, up from 237 at the end of 2023.
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Adjusted Gross Margin: 54.2% in Q4; 55.5% for the full year.
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Adjusted SG&A: $103 million or 54% of revenue in Q4.
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Adjusted EBITDA: $13.8 million in Q4; $73.1 million for the full year.
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Free Cash Flow: $35 million in 2024.
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Cash Position: Approximately $254 million at year-end.
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2025 Revenue Guidance: $878 million to $893 million, 14% to 16% growth year-over-year.
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2025 Adjusted EBITDA Guidance: $97 million, approximately 11% margin.
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2025 Store Openings: 45 new locations, including 5 shop-in-shops with Target.
Release Date: February 27, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Warby Parker Inc (NYSE:WRBY) achieved its highest revenue growth quarter since 2021, with a 17.8% year-over-year increase in Q4 2024.
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The company expanded its adjusted EBITDA margins by approximately 170 basis points, reflecting a focus on profitable growth.
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Warby Parker Inc (NYSE:WRBY) opened 41 new stores in 2024 and plans to open 45 more in 2025, indicating strong retail expansion.
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The integration of Versant Health expanded in-network coverage to over 30 million lives, enhancing the insurance business.
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The company reported strong growth in its contact lens and eye exam businesses, with contacts growing 36% and exams 41% year-over-year.
Negative Points
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Despite positive growth, the e-commerce revenue only increased by 5.3% year-over-year in Q4 2024, indicating slower growth compared to retail.
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The optical industry has experienced lower than usual growth, presenting challenges for market expansion.
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The company faces a potential 20 to 40 basis point headwind from tariffs, impacting gross margins.
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Warby Parker Inc (NYSE:WRBY) is maintaining a conservative stance on guidance due to broader macroeconomic uncertainties.
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The Target partnership is still in its early phases, with only five shop-in-shops planned, contributing minimally to 2025 revenue.