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Warby Parker shares in the green after the eyeglass retailer raised its full-year guidance as active consumers. Those customers continue to spend online to discuss. We've got with us Dave Gilboa, who is the co-founder and co-CEO of Warby Parker. Dave, great to check in with you and thanks for taking the time here today on the back of this earnings report here. I mean, net revenue up 13%, active customers up 4 and a half percent. Take us into the consumer as you see him through the Warby Parker lens right now.

Yeah, thanks for having me on and and we're proud of our Q2 results and the progress that we made so far this year. We really set out to accelerate our active customer growth, which we've now done four straight quarters. Uh we've seen our e-commerce business return to growth um with Q2 being the fastest quarterly growth since the beginning of 2021. Um and are making progress against um our long-term strategic initiatives. Um there's no question that many consumers are are feeling pinched and um and and are being more thoughtful around where they're spending dollars. Uh we feel fortunate that we serve mainly high income segments, so our average household income is over 100,000. Um and we sell products that that people need to see. Um and so we're seeing a more intentional consumer uh where a higher percentage of our customers are starting with an eye exam and then buying glasses versus kind of casually shopping and coming in with bags from lots of other stores. Uh but we're encouraged by the progress that that we're seeing in our business and our ability to to serve our patients and customers.

And when you think about the retention of that higher end consumer, I mean, how many engagements are you typically seeing with them over time?

Um yeah, so we find that once someone shops with Warby Parker, they tend to love the experience and they tend to come back over time. And so uh we've seen very consistent retention metrics across cohorts. Uh we tend to see that um if someone buys uh uh they they tend to come back and and um spend as much in that initial purchase with us over the next few years. Um now buying a pair of glasses or getting an exam is not something that uh most people um undergo every month or every quarter. Uh but we do see our customers coming back year after year.

We we've seen some considerable movements in vision insurance. I wonder from Warby Parker how you're seeing customers really lean into making sure that they have that vision insurance that is able to offset some of what their expenses would be out of pocket, typically with Warby Parker and and what that means for the company and its own financial performance.

Yeah, so uh we've really focused on being able to deliver great value. Um whether our customers are paying out of pocket or using insurance benefits. Um but uh we want our customers dollars to go as far as possible. And so we've been working on expanding our insurance coverage. Um we're in network with United Health and we announced earlier this year that we're um adding um all of versus um versus health. Uh uh members will be able to use their network benefits at Warby Parker and that integration is underway. Um we've also been focused on um serving out of network customers uh even better. And if you go to warbyparker.com/insurance, you can just enter your name, your birth date, um and your zip code and uh we'll tell you what your insurance benefits are and and how to use them at Warby.

Just lastly, while we have you here, you of course do the ever popular frames, but you also do and of course tests, but you also do contact lenses as well here. You know, what are you seeing in the performance of that business? I mean, we know that it's been one of the elements to try and really diversify the strategy for Warby Parker over the years.

Yeah, so we've seen massive growth in our contacts business. Um we know that around 40% of our glasses customers wear contacts and it was the most requested item before we offered it. Um people wanted to buy glasses and contacts at the same time and now we offer that. Um and we're seeing really rapid growth um contacts growing around 40% year of a year and are excited to continue scale that business.

As as more people are perhaps even trying to look or lean into their insurance and see if they're covered by, you know, LASIK or any other eye surgeries, you know, is that a is that a headwind risk that you're seeing become elevated at Warby Parker?

This is a category that has a lot of durability. Uh we sell products that people need to see. Um and if anything, the incidence of refractive error and the need for glasses and contacts is only increasing. Um and so we remain highly confident in the long-term durability of the category and the need for the products that we sell every day.

Certainly. Dave Gilboa, great to see you. Good to check in with you, Warby Parker co-founder and CEO. Tell Dave we say hello to Yeah, Dave, thanks so much.

Anytime.