Warby Parker Inc. (NYSE:WRBY) Q2 2022 Earnings Conference Call August 11, 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
Oliver Chen - Cowen
Mark Altschwager - Baird
Edward Yruma - Piper Sandler
Brooke Roach - Goldman Sachs
Brandon Cheatham - Citi
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.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 August 11, 2022, and 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 nearest 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 Dave to kick us off.
Dave Gilboa
Welcome and thank you all for joining this morning.
To start, we'd like to thank team Warby for their continued commitment to creating exceptional products and customer experiences that help people see. In Q2, we brought our corporate teams back to the office, and it's been overwhelmingly positive to collaborate in person after two plus years of remote work. Q2 was another quarter where Warby Parker delighted customers, gained market share and made strong progress against our core strategic growth initiatives. We delivered net revenue of $149.6 million in line with our guidance range and generated $5.9 million in adjusted EBITDA ahead of our guidance.
But it was also a quarter where the normally steady and predictable shopping behavior in our category continue to deviate from historical trends. During our last earnings call in mid-May, we discussed the impact of Omicron on our business, which resulted in lost sales and a decline in retail productivity below 80% of 2019 levels in early Q1 before a steady recovery reached approximately 90% retail productivity levels in April. This positive trend extended into mid-May at the time of our last call, which led us to share optimism about a continued recovery like we had seen after previous COVID ways.