NEW YORK—Warby Parker Inc. (NYSE: WRBY) announced its financial results yesterday for the third quarter ended September 30, 2024, demonstrating a net revenue increase of $22.6 million, or 13.3 percent, to $192.4 million, as compared with the prior-year period. Net loss improved $13.3 million to $4.1 million, the company reported, primarily as a result of leveraging its expense base on higher revenue. Warby Parker opened 13 net new stores during the quarter, ending Q3 with 269 stores, and raised its 2024 full-year guidance. The company also reported that 2024 year-to-date revenue grew 14.3 percent compared with the prior-year period, and that it has opened 32 net new stores though the first nine months of 2024.

“Warby Parker’s Q3 performance is a direct result of our team’s commitment to making progress on our strategic initiatives, in particular expanding our marketing efforts, investing in store expansion, and enhancing our holistic vision care offering,” said Warby Parker co-founder and co-CEO Neil Blumenthal.

Co-founder and co-CEO Dave Gilboa added, “We’re particularly encouraged by the momentum we’re seeing in early Q4. As we close out the year, we’re focused on continuing to capture market share, bring new customers to the brand, and deliver on our commitment to accelerate growth and improve profitability year over year.”

The company reported that active customers increased 5.6 percent to 2.43 million in the third quarter of 2024, on a trailing 12-month basis, and average revenue per customer increased 7.5 percent to $305.
 
“We’re encouraged by our team’s progress against the strategic initiatives we laid out at the beginning of 2024,” Blumenthal said on an earnings call. “In particular, the momentum we’ve seen in active customers and glasses growth.”

Gross margin was 54.5 percent in the third quarter of 2024 compared with 54.6 percent in the prior-year period. The decrease in gross margin was primarily driven by the sales growth of contact lenses and increased doctor headcount, according to the company.

Selling, general and administrative expenses in the third quarter of 2024 were reported as $111.5 million, down $1.0 million from the  prior-year period, and represented 57.9 percent of revenue, down from 66.2 percent in the  prior-year period.

Adjusted EBITDA during the third quarter increased $6.3 million to $17.3 million, and adjusted EBITDA margin increased 2.5 points to 9.0 percent. Warby Parker said it ended the third quarter of 2024 with $251.0 million in cash and cash equivalents.

For the full year 2024, Warby Parker raised its net revenue guidance to a range of $765 million to $768 million, representing growth of approximately 14 percent to 15 percent compared with full year 2023. The company also stated that it is on track to open 40 new stores in 2024. For the fourth quarter of 2024, net revenue has been adjusted to expected new revenue of $184.3 million to $187.3 million, a net revenue increase of approximately 14 percent to 16 percent.

“We’re pleased that we delivered continued revenue growth and adjusted EBITDA margin expansion in the third quarter. Given outperformance year-to-date, we are raising our full-year revenue and adjusted EBITDA guidance, which we anticipate will set the stage for a strong 2025,” said Warby Parker chief financial officer Steve Miller.

Warby Parker currently operates 269 retail stores across the U.S. and Canada. The company was ranked ninth on Vision Monday’s 2024 list of Top U.S. Optical Retailers. Full-year net revenue in 2023 totaled $669.8 million, including both online sales and those from North American storefronts.