Warby Parker Inc. (NYSE:WRBY) Q3 2022 Earnings Conference Call November 10, 2022 8:00 AM ET

Company Participants

Neil Blumenthal - Co-Founder and Co-CEO

Dave Gilboa - Co-Founder and Co-CEO

Steve Miller - SVP and CFO

Conference Call Participants

Edward Yruma - Piper Sandler

Brandon Cheatham - CITI

Dana Telsey - Telsey Advisory Group

Operator

Thank you and good morning everyone. Here with me today are Neil Blumenthal, 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.warbyparker.com. During this call, and in our presentation, we will be making comments of a 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 section titled “Risk Factors” in the company's latest annual report on Form 10-K. These forward-looking statements are based on information as of November 10, 2022, and except 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 U.S. GAAP.

A reconciliation of these items to the most directly comparable U.S. GAAP measure can be found in this morning's press release and our slide deck available on our IR website.

And with that I'll pass it over to Neil to kick us off. Neil, please go ahead.

Neil Blumenthal

Welcome and thank you all for joining this morning to discuss Warby Parker’s third quarter 2022 results. I’m pleased to share that in the third quarter we achieved results moderately above the high end of our guidance range. Despite an increasingly difficult and uncertain macro environment we delivered net revenue of approximately $149 million an increase of 8.3% over the same period last year and nearly $3 million above the high end of our revised guidance. We believe this is because of our brand, our value proposition, our omni channel model that continues to resonate with consumers and drive incremental demand even as consumer’s wallets remain pressured.

We ended the quarter with 2.26 million active customers, an increase of 5.1% versus last year as we continue to gain share of the $44 billion vision care market and the nearly 200 million adults in the U.S. using some form of vision correction. Equally important as we expand our product and service offering customers are spending more with us than ever. Average revenue per customer increased nearly 7% year-over-year, reaching a new high of $258 in the third quarter.