Newly public Warby Parker’s loss doubles in Q3 amid listing and other costs
Warby Parker’s third-quarter revenue rose, but its net loss widened amid costs related to its September public listing and stock-based compensation.
The eyeglass maker reported a net loss of $91.1 million, or $1.45 per share, for the quarter ended Sept. 30, compared with a loss of $41.6 million, or $0.78 cents for the year-ago period. Warby Parker reported $42.4 million in stock-based compensation expense, $23.9 million of costs related to its direct listing expenses and a $7.8 million donation to the company’s foundation
Revenue increased 32% to $137.4 million from $104.1 million. Sales rose 45% on a two-year basis.
Warby Parker made its public debut on September 29. Founded online in 2010, the company opened its first physical store in 2013. It is on track to open 35 stores by the end of the year, bringing its total count to 161 locations.
“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,” said 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.”
Similar to some other DTC brands that have recently filed to go public, Warby Parker has struggled with profitability, reporting a net loss of $55.9 million net loss in 2020. However, it narrowed its loss in the first half of 2021, reporting a $7.3 million loss compared to a loss of $10 million in the year-ago period.
The company said that active customers totaled 2.15 million, up 23% over the same period last year. For the full year, Warby expects revenues to increase 37% to 38% to a range of $539.5 million to $542 million.
“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,” said CFO Steve Miller.