Revenue increased 32.0% to $137.4
million
Raises Fiscal 2021 Outlook
Active customers increased to 2.15 million
Warby Parker Inc. (NYSE: WRBY) (the “Company”), a
direct-to-consumer lifestyle brand focused on vision for all, today
announced financial results for the quarter ended September 30,
2021.
“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.
“We’re incredibly proud of the milestones we achieved in Q3,
from opening our second optical lab to going public via a direct
listing–and being the first public benefit corporation to do so,”
added Co-Founder and Co-CEO Neil Blumenthal. “As we look ahead, we
remain laser focused on executing against our growth strategies by
increasing our active customer base, expanding our retail
footprint, and delivering innovative products and services that
further our mission to inspire and impact the world with vision,
purpose and style.”
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, gross margin for
third quarter 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 expense
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 described above.
- Adjusted EBITDA(1) increased $5.8 million, or 106%, to $11.2
million.
- Adjusted EBITDA margin(1) increased 290 basis points to
8.1%.
- Warby Parker opened nine new stores during the quarter,
bringing year-to-date openings to 28, and ended the quarter with
154 stores.
Due to the impact of COVID-19-related store closures last year,
Warby Parker is making fiscal year 2021 financial comparisons
against fiscal years 2020 and 2019. The consolidated statement of
operations for the third quarter of 2019 is included in the tables
at the end of this release for reference.
For the third quarter of 2021, compared to the third quarter of
2019:
- Net revenue increased $42.6 million, or 45%.
- Gross margin was 58.0%, compared to 60.0% in the prior period,
primarily driven by an increased penetration of contacts in 2021
versus 2019, 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.
- SG&A increased $116.3 million to $171.6 million, primarily
driven by $65.0 million in stock 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, SG&A increased $20.2 million, on an
adjusted basis. On this basis(1), SG&A as a percentage of
revenue improved 320 basis points, from 57.8% 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 $92.5 million to $91.1 million, primarily as
a result of the increase in SG&A described above.
- Adjusted EBITDA(1) increased $4.8 million, or 76% to $11.2
million.
- Adjusted EBITDA margin(1) increased 140 basis points to
8.1%.
“Our journey to becoming a public company has been incredibly
fulfilling and exciting, and we are pleased to report strong
financial performance in our first earnings report” said Chief
Financial Officer Steve Miller. “Our financial model remains
grounded in steady active customer growth, consistent customer
retention, and compelling customer economics, which we believe
provides the framework for sustainable growth with increasing
profitability for years to come.”
Balance Sheet Highlights
Warby Parker ended the third quarter 2021 with $266.2 million in
cash and cash equivalents.
Raises 2021 Outlook
For the fiscal year 2021, Warby Parker now expects:
- Net revenue of $539.5 million to $542.0 million, representing
growth of 37% to 38% versus fiscal year 2020 and growth of 46%
versus fiscal year 2019.
- Adjusted EBITDA margin(1) of approximately 4% to 5%.
- 35 new store openings bringing total store count to 161.
The guidance and forward-looking statements made in this press
release are based on management's expectations as of the date of
this press release and do not incorporate future unknown direct or
indirect impacts from further resurgences in COVID-19, including
the Delta variant.
(1) Please see the reconciliation of non-GAAP financial measures
to the most comparable GAAP financial measure in the section titled
"Non-GAAP Financial Measures" below.
Webcast and Conference
Call
A conference call to discuss Warby Parker’s Q3 2021 financial
results and outlook is scheduled for 8:00 a.m. ET today. To
participate, please dial 844-200-6205 from the U.S. or 929-526-1599
from international locations. The conference passcode is 386560. A
live webcast of the conference call will be available on the
investors section of the Company’s website at
investors.warbyparker.com where presentation materials will also be
posted prior to the conference call. A replay will be made
available online approximately two hours following the live call
for a period of 90 days.
Forward-Looking
Statements
This press release and the related conference call, webcast and
presentation contain forward-looking statements within the meaning
of Section 27A of the Securities Act of 1933, as amended, and
Section 21E of the Securities Exchange Act of 1934, as amended.
These statements may relate to, but are not limited to,
expectations of future operating results or financial performance,
including expectations regarding achieving profitability and our
GAAP and non-GAAP guidance for the years ending December 31, 2021
and December 31, 2022; management’s plans, priorities, initiatives
and strategies; and expectations regarding growth of our business.
Forward-looking statements are inherently subject to risks and
uncertainties, some of which cannot be predicted or quantified. In
some cases, you can identify forward-looking statements because
they contain words such as “anticipate,” “believe,” “contemplate,”
“continue,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,”
“potential,” “predict,” “project,” “should,” “target,” “toward,”
“will,” or “would,” or the negative of these words or other similar
terms or expressions. You should not put undue reliance on any
forward-looking statements. Forward-looking statements should not
be read as a guarantee of future performance or results and will
not necessarily be accurate indications of the times at, or by,
which such performance or results will be achieved, if at all.
Forward-looking statements are based on information available at
the time those statements are made and are based on current
expectations, estimates, forecasts, and projections as well as the
beliefs and assumptions of management as of that time with respect
to future events. These statements are subject to risks and
uncertainties, many of which involve factors or circumstances that
are beyond our control, that could cause actual performance or
results to differ materially from those expressed in or suggested
by the forward-looking statements. In light of these risks and
uncertainties, the forward-looking events and circumstances
discussed in this press release may not occur and actual results
could differ materially from those anticipated or implied in the
forward-looking statements. These risks and uncertainties include
our ability to manage our future growth effectively; our
expectations regarding cost of goods sold, gross margin, channel
mix, customer mix, and selling, general, and administrative
expenses; planned new retail stores in 2021 and going forward;
increases in component and shipping costs and changes in supply
chain; our ability to compete successfully; our ability to manage
our inventory balances and shrinkage; our ability to engage our
existing customers and obtain new customers; the growth of our
brand awareness; the effects of the ongoing COVID-19 pandemic; the
effects of seasonal trends on our results of operations; our
ability to stay in compliance with extensive laws and regulations
that apply to our business and operations; our ability to
adequately maintain and protect our intellectual property and
proprietary rights; our reliance on third parties for our products,
operation and infrastructure; our duties related to being a public
benefit corporation; the ability of our Co-Founders and Co-CEOs to
exercise significant influence over all matters submitted to
stockholders for approval; the effect of our multi-class structure
on the trading price of our Class A common stock; and the increased
expenses associated with being a public company. Additional
information regarding these and other risks and uncertainties that
could cause actual results to differ materially from the Company's
expectations is included in our Registration Statement on Form S-1,
as filed with, and declared effective by, the Securities and
Exchange Commission (the “SEC”), and will be included in our
Quarterly Report on Form 10-Q for the third quarter ended September
30, 2021. Except as required by law, we do not undertake any
obligation to publicly update or revise any forward-looking
statement, whether as a result of new information, future
developments, or otherwise.
Additional information regarding these and other factors that
could affect the Company’s results is included in the Company’s SEC
filings, which may be obtained by visiting the SEC's website at
www.sec.gov. Information contained on, or that is referenced or can
be accessed through, our website does not constitute part of this
document and inclusions of any website addresses herein are
inactive textual references only.
Glossary
Active Customer is defined as a unique customer that has made at
least one purchase of any product or service in the preceding
12-month period.
Non-GAAP Financial
Measures
We use Adjusted EBITDA, Adjusted EBITDA margin, Adjusted net
income, Adjusted earnings per share, Adjusted cost of goods sold
(“Adjusted COGS”), Adjusted gross profit, and Adjusted selling,
general, and administrative expenses (“Adjusted SG&A”) as
important indicators of our operating performance. Collectively, we
refer to these non-GAAP financial measures as our “Non-GAAP
Measures.” The Non-GAAP Measures, when taken collectively with our
GAAP results, may be helpful to investors because they provide
consistency and comparability with past financial performance and
assist in comparisons with other companies, some of which use
similar non-GAAP financial information to supplement their GAAP
results.
Adjusted EBITDA is defined as net income (loss) before interest
and other income (loss), taxes, and depreciation and amortization
as further adjusted for stock-based compensation expense, non-cash
charitable donations, and non-recurring costs such as direct
listing or other transaction costs. Adjusted EBITDA margin is
defined as Adjusted EBITDA divided by net revenue.
Adjusted net income is defined as net income (loss) adjusted for
stock-based compensation expense, non-cash charitable donations,
and non-recurring costs such as direct listing or other transaction
costs, and as further adjusted for estimated income tax on such
adjusted items.
Adjusted earnings per share is defined as Adjusted net income
(loss) divided by adjusted weighted average shares outstanding.
Adjusted COGS is defined as cost of goods sold adjusted for
stock-based compensation expense.
Adjusted gross profit is defined as net revenue minus Adjusted
COGS.
Adjusted SG&A is defined as SG&A adjusted for
stock-based compensation expense, non-cash charitable donations,
and non-recurring costs such as direct listing or other transaction
costs.
The Non-GAAP Measures are presented for supplemental
informational purposes only. A reconciliation of historical GAAP to
Non-GAAP financial information is included under “Selected
Financial Information” below.
We have not reconciled our Adjusted EBITDA margin guidance to
GAAP net income (loss) margin, or Net Margin, because we do not
provide guidance for GAAP Net Margin due to the uncertainty and
potential variability of stock-based compensation and taxes, which
are reconciling items between GAAP Net Margin and Adjusted EBITDA
margin. Because such items cannot be reasonably provided without
unreasonable efforts, we are unable to provide a reconciliation of
the Adjusted EBITDA Margin guidance to GAAP Net Margin. However,
such items could have a significant impact on GAAP Net Margin.
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.
Selected Financial Information
Warby Parker Inc. and
Subsidiaries
Condensed Consolidated Balance
Sheets (Unaudited)
(Amounts in thousands, except
share data)
September 30,
2021
December 31, 2020
Assets
Current assets:
Cash and cash equivalents
$
266,237
$
314,085
Accounts receivable, net
822
601
Inventory
51,442
38,468
Prepaid expenses and other current
assets
34,991
6,779
Total current assets
353,492
359,933
Property and equipment, net
105,332
84,534
Other assets
739
284
Total assets
$
459,563
$
444,751
Liabilities, Redeemable Convertible
Preferred Stock, and Stockholders’ Equity (Deficit)
Current liabilities:
Accounts payable
$
49,621
$
40,788
Accrued expenses
63,656
34,270
Deferred revenue
16,779
26,550
Other current liabilities
4,299
3,722
Total current liabilities
134,355
105,330
Deferred rent
30,978
27,997
Other liabilities
2,674
3,011
Total liabilities
168,007
136,338
Commitments and contingencies
Redeemable convertible preferred stock,
$.0001 par value, zero and 54,507,243 shares authorized at
September 30, 2021 and December 31, 2020, respectively; zero and
54,041,904 shares issued and outstanding as of September 30, 2021
and December 31, 2020, respectively
—
506,510
Stockholders’ equity (deficit):
Common stock, $.0001 par value,
1,050,000,000 and 150,000,000 shares authorized at September 30,
2021 and December 31, 2020, respectively; 111,392,357 and
53,944,305 shares issued and outstanding as of September 30, 2021
and December 31, 2020, respectively
11
5
Additional paid-in capital
738,834
127,179
Accumulated deficit
(447,339
)
(325,390
)
Accumulated other comprehensive income
50
109
Total stockholders’ equity (deficit)
291,556
(198,097
)
Total liabilities, redeemable convertible
preferred stock, and stockholders’ equity (deficit)
$
459,563
$
444,751
Warby Parker Inc. and
Subsidiaries
Condensed Consolidated
Statements of Operations (Unaudited)
(Amounts in thousands, except
share and per share data)
Three Months Ended September
30,
Nine Months Ended September
30,
2021
2020
2019
2021
2020
2019
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
Gross profit
79,664
63,980
56,861
241,499
166,756
169,776
Selling, general, and administrative
expenses
171,643
105,315
55,382
339,264
217,271
157,916
(Loss) income from operations
(91,979
)
(41,335
)
1,479
(97,765
)
(50,515
)
11,860
Interest and other (loss) income, net
(146
)
(81
)
58
(452
)
(626
)
1,560
(Loss) income before income taxes
(92,125
)
(41,416
)
1,537
(98,217
)
(51,141
)
13,420
Provision for income taxes
(1,052
)
196
154
151
478
1,562
Net (loss) income
$
(91,073
)
$
(41,612
)
$
1,383
$
(98,368
)
$
(51,619
)
$
11,858
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
)
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
Warby Parker Inc. and
Subsidiaries
Condensed Consolidated
Statements of Cash Flows (Unaudited)
(Amounts in thousands)
Nine Months Ended September
30,
2021
2020
Cash flows from operating activities
Net loss
$
(98,368
)
$
(51,619
)
Adjustments to reconcile net loss to net
cash provided by operating activities:
Depreciation and amortization
15,322
13,294
Stock-based compensation
76,002
43,749
Non-cash charitable contribution
7,757
—
Change in operating assets and
liabilities:
Accounts receivable, net
(221
)
671
Inventory
(12,971
)
(5,698
)
Prepaid expenses and other assets
(775
)
(2,117
)
Other non-current assets
(548
)
(13
)
Accounts payable
7,629
1,899
Accrued expenses
11,724
11,174
Deferred revenue
(9,774
)
(3,096
)
Other current liabilities
578
764
Deferred rent
2,980
1,471
Other liabilities
530
2,907
Net cash (used in) provided by operating
activities
(135
)
13,386
Cash flows from investing activities
Purchases of property and equipment
(34,018
)
(14,748
)
Net cash used in investing activities
(34,018
)
(14,748
)
Cash flows from financing activities
Proceeds from stock option and warrant
exercises
10,087
966
Employee tax withholding remitted in
connection with exercise or release of equity awards
(29,059
)
—
Proceeds from repayment of related party
loans
31,513
945
Stock repurchases
(8,085
)
—
Issuance of Series F redeemable
convertible preferred stock, net of issuance costs
—
124,717
Issuance of Series G redeemable
convertible preferred stock, net of issuance costs
—
118,969
Payment for Tender Offer
(18,031
)
—
Borrowings from Credit Facility
—
30,900
Repayment of Credit Facility
—
(30,900
)
Net cash (used in) provided by financing
activities
(13,575
)
245,597
Effect of exchange rates on cash
(120
)
(263
)
Net (decrease) increase in cash and cash
equivalents
(47,848
)
243,972
Cash and cash equivalents
Beginning of year
314,085
55,424
End of year
$
266,237
$
299,396
Supplemental disclosures
Cash paid for income taxes
$
314
$
220
Cash paid for interest
94
438
Non-cash investing and financing
activities:
Purchases of property and equipment
included in accounts payable and accrued expenses
$
5,246
$
2,623
Related party loans issued in connection
with stock option exercises
13,827
—
Warby Parker Inc. and Subsidiaries
Reconciliation of GAAP to Non-GAAP Measures (Unaudited)
The following table reflects a reconciliation of Adjusted EBITDA
to net loss, the most directly comparable financial measure
prepared in accordance with GAAP:
Three Months Ended September
30,
Nine Months Ended September
30,
2021
2020
2019
2021
2020
2019
(unaudited, in
thousands)
(unaudited, in
thousands)
Net loss
$
(91,073
)
$
(41,612
)
$
1,383
$
(98,368
)
$
(51,619
)
$
11,858
Adjusted to exclude the following:
Interest and other (loss), net
(146
)
(81
)
58
(452
)
(626
)
1,560
Provision for income taxes
(1,052
)
196
154
151
478
1,562
Depreciation and amortization expense
5,587
4,395
4,262
15,410
13,370
10,989
Stock-based compensation expense(1)
65,929
42,377
615
77,599
43,749
4,081
Non-cash charitable donation(2)
7,757
—
—
7,757
—
—
Transaction costs(3)
23,893
—
—
28,262
—
—
Adjusted EBITDA
$
11,187
$
5,437
$
6,356
$
31,263
$
6,604
$
26,930
Adjusted EBITDA margin
8.1
%
5.2
%
6.7
%
7.7
%
2.4
%
9.7
%
(1) Represents expenses related to the
Company’s equity-based compensation programs, which may vary
significantly from period to period depending upon various factors
including the timing, number, and the valuation of awards granted,
vesting of awards including the satisfaction of performance
conditions, and the impact of repurchases of awards from employees.
For the period ending September 30, 2021, the amount includes $1.6
million of employer payroll costs associated with the release of
RSUs in connection with our Direct Listing.
(2) Represents charitable expense recorded
in connection with the donation of 178,572 shares of Series A
common stock to the Warby Parker Impact Foundation in August
2021.
(3) Represents (i) costs directly
attributable to the preparation for our Direct Listing and (ii)
expenses incurred in connection with the cash tender offer
completed in June 2021 (the “Tender Offer”).
The following table presents our non-GAAP, or adjusted,
financial measures for the three and nine months ended 2021, 2020,
and 2019 as a percentage of revenue. Each cost and operating
expense is adjusted for transaction costs, stock-based compensation
expense, which includes payroll tax expense related to stock-based
compensation, and a charitable stock donation.
Reported
Adjusted
Reported
Adjusted
Three Months Ended September
30,
Three Months Ended
September 30,
Nine Months Ended September
30,
Nine Months Ended September
30,
2021
2020
2019
2021
2020
2019
2021
2020
2019
2021
2020
2019
(unaudited, in
millions)
(unaudited, in
millions)
(unaudited, in
millions)
(unaudited, in
millions)
Cost of goods sold
$
57.7
$
40.1
$
37.9
$
56.8
$
40.1
$
37.9
$
166.4
$
114.1
$
107.1
$
165.5
$
114.1
$
107.1
% of Revenue
42.0
%
38.5
%
40.0
%
41.3
%
38.5
%
40.0
%
40.8
%
40.6
%
38.7
%
40.6
%
40.6
%
38.7
%
Gross profit
$
79.7
$
64.0
$
56.8
$
80.6
$
64.0
$
56.8
$
241.5
$
166.8
$
169.7
$
242.4
$
166.8
$
169.7
% of Revenue
58.0
%
61.5
%
60.0
%
58.7
%
61.5
%
60.0
%
59.2
%
59.4
%
61.3
%
59.4
%
59.4
%
61.3
%
Selling, general, and administrative
expenses
$
171.6
$
105.3
$
55.4
$
75.0
$
62.9
$
54.8
$
339.3
$
217.3
$
157.9
$
226.6
$
173.5
$
153.8
% of Revenue
124.9
%
101.2
%
58.5
%
54.6
%
60.4
%
57.9
%
83.2
%
77.4
%
57.0
%
55.6
%
61.8
%
55.6
%
Net (loss) income
$
(91.1
)
$
(41.6
)
$
1.4
$
3.9
$
0.7
$
1.5
$
(98.4
)
$
(51.6
)
$
11.9
$
11.0
$
(5.3
)
$
12.6
% of Revenue
(66.3
)
%
(40.0
)
%
1.5
%
2.8
%
0.7
%
1.6
%
(24.1
)
%
(18.4
)
%
4.3
%
2.7
%
(1.9
)
%
4.6
%
The following table reflects a reconciliation of each non-GAAP,
or adjusted, financial measure to its most directly comparable
financial measure prepared in accordance with GAAP:
Three Months Ended September
30,
Nine Months Ended September
30,
2021
2020
2019
2021
2020
2019
(unaudited, in
thousands)
(unaudited, in
thousands)
Cost of goods sold
$
57,709
$
40,111
$
37,874
$
166,407
$
114,125
$
107,066
Adjusted to exclude the following:
Stock-based compensation expense(1)
923
—
3
923
1
11
Adjusted cost of goods sold
$
56,786
$
40,111
$
37,871
$
165,484
$
114,124
$
107,055
Gross profit
$
79,664
$
63,980
$
56,861
$
241,499
$
166,756
$
169,776
Adjusted to exclude the following:
Stock-based compensation expense(1)
923
—
3
923
1
11
Adjusted gross profit
$
80,587
$
63,980
$
56,864
$
242,422
$
166,757
$
169,787
Selling, general, and administrative
expenses
$
171,643
$
105,315
$
55,382
$
339,264
$
217,271
$
157,916
Adjusted to exclude the following:
Stock-based compensation expense(1)
65,006
42,377
612
76,676
43,748
4,070
Non-cash charitable donation(2)
7,757
—
—
7,757
—
—
Transaction costs(3)
23,893
—
—
28,262
—
—
Adjusted selling, general, and
administrative expenses
$
74,987
$
62,938
$
54,770
$
226,569
$
173,523
$
153,846
Net (loss) income
$
(91,073
)
$
(41,612
)
$
1,383
$
(98,368
)
$
(51,619
)
$
11,858
Provision for income taxes
(1,052
)
196
154
151
478
1,562
(Loss) income before income taxes
(92,125
)
(41,416
)
1,537
(98,217
)
(51,141
)
13,420
Adjusted to exclude the following:
Stock-based compensation expense(1)
65,929
42,377
615
77,599
43,749
4,081
Non-cash charitable donation(2)
7,757
—
—
7,757
—
—
Transaction costs(3)
23,893
—
—
28,262
—
—
Adjusted provision for income taxes(4)
(1,542
)
(272
)
(609
)
(4,355
)
2,090
(4,949
)
Adjusted net income (loss)
$
3,912
$
689
$
1,543
$
11,046
$
(5,302
)
$
12,552
Less: undistributed adjusted net income
attributable to participating securities
(1,648
)
(340
)
(694
)
(5,221
)
—
(5,858
)
Adjusted net income (loss) attributable to
common stock
$
2,264
$
349
$
849
$
5,825
$
(5,302
)
$
6,694
Adjusted weighted average shares -
diluted(5)
69,189,226
59,515,607
59,299,298
63,717,358
52,818,555
58,974,645
Adjusted diluted earnings per share
$
0.03
$
0.01
$
0.01
$
0.09
$
(0.10
)
$
0.11
(1) Represents expenses related to the
Company’s equity-based compensation programs, which may vary
significantly from period to period depending upon various factors
including the timing, number, and the valuation of awards granted,
vesting of awards including the satisfaction of performance
conditions, and the impact of repurchases of awards from employees.
For the period ending September 30, 2021, the amount includes $1.6
million of employer payroll costs associated with the release of
RSUs in connection with our Direct Listing, of which $0.1 million
is included in COGS and $1.5 million is included in SG&A.
(2) Represents charitable expense recorded
in connection with the donation of 178,572 shares of Series A
common stock to the Warby Parker Impact Foundation in August
2021.
(3) Represents (i) costs directly
attributable to the preparation for our Direct Listing and (ii)
expenses incurred in connection with the cash tender offer
completed in June 2021 (the “Tender Offer”).
(4) The adjusted provision for income
taxes is based on long-term estimated annual effective tax rates of
28.28%. The Company may adjust its adjusted tax rate as additional
information becomes available or events occur which may materially
affect this rate, including impacts from the rapidly evolving
global tax environment, significant changes in our geographic mix,
merger and acquisition activity, or changes in our business
outlook.
(5) Includes an additional 6.3 million,
6.3 million, and 6.8 million dilutive securities for the three
months ended September 30, 2021, 2020, and 2019, respectively, and
an additional 6.7 million, 0, and 6.6 million dilutive securities
for the nine months ended September 30, 2021, 2020, and 2019,
respectively, that are excluded from a GAAP perspective due to the
Company’s net loss position.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20211112005544/en/
Investor Relations: Tina Romani Investors@Warbyparker.com
Media: Lena Griffin lena@derris.com
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