Warby Parker Inc. (NYSE:WRBY) Q1 2023 Earnings Conference Call May 9, 2023 8:00 AM ET

Company Participants

Neil Blumenthal - Co-Founder, President, Co-CEO & Co-Chair

Dave Gilboa - Co-Founder, Co-CEO & Co-Chair

Steve Miller - Senior Vice President & Chief Financial Officer

Conference Call Participants

Dana Telsey - Telsey Group

Oliver Chen - TD Cowen

Edward Yruma - Piper Sandler

Brooke Roach - Goldman Sachs

Mark Altschwager - Baird

Mark Mahaney - Evercore

Operator

Thank you, and good morning, everyone. Here with me today are Neil Blumenthal and Dave Gilboa, our co-founders and co-CEOs, alongside Steve Miller, Senior Vice President and Chief Financial Officer.

Before we begin we have a couple of reminders. Our earnings release and slide presentation are available on our website at investors.waybyparker.com. During this call and in our presentation we will be – will be making comments on the forward-looking nature. Actual results may differ materially from those expressed or implied as a result of various risks and uncertainties. For more information about some of these risks, please review the company's SEC filings including the session titled, Risk Factors, the company's latest annual report on Form 10-K. These forward-looking statements are based on information as of May 9, 2023, and expect as required by law, we assume no obligation to publicly update or revise our forward-looking statements. Additionally, we will be discussing certain non-GAAP financial measures. These non-GAAP financial measures are in addition to and not a substitute for measures of financial performance prepared in accordance with US GAAP. A reconciliation of these items to the most direct comparable US GAAP measures can be found in this morning's press release and our slide deck available on our IR website.

And with that I will pass it over to Neil to kick us off.

Neil Blumenthal

Welcome, and thank you all for joining this morning to discuss Warby Parkers’ first quarter 2023 results. 2023 is off to an encouraging start as many of the positive trends we experienced across our business late last year accelerated in the first quarter, driving operating results that surpassed expectations.

Q1 revenue increased 12% to $172 million compared to our forecasted range for revenue growth between 7% to 9% and an acceleration in growth compared to the second half of 2022. Q1 results were built off of a strong December, which was highlighted by the return to a more normalized FSA shopping period late in the month. While the optical industry continues to face demand pressures and our growth has been impacted by our pullback in marketing spend, we are capturing market share gains through our focus on the customer experience, product innovation and store expansion.