Warby Parker Inc. (NYSE:WRBY) Q1 2022 Earnings Conference Call May 16, 2022 8:00 AM ET

Company Participants

Neil Blumenthal – Co-Founder and Co-Chief Executive Officer

Dave Gilboa – Co-Founder and Co-Chief Executive Officer

Steve Miller – Senior Vice President and Chief Financial Officer

Tina Romani – Vice President of Investor Relations

Conference Call Participants

Oliver Chen – Cowen & Co.

Paul Lejuez – Citigroup

Dana Telsey – Telsey Advisory Group

Mark Altschwager – Robert W. Baird & Co.

Brooke Roach – Goldman Sachs

Mark Mahaney – Evercore ISI

Tina Romani

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 our company’s SEC filings, including the section titled Risk Factors in the company's latest annual forms on Form 10-K.

These forward-looking statements are based on the information as of May 16th, 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 to substitute for measures of financial performance prepared in accordance with GAAP. A reconciliation of these items to our nearest U.S. GAAP measure can be found in this morning's press release and on our slide deck available on our IR website. I will now like to pass over to host, Neil Blumenthal to begin. Please go ahead.

Neil Blumenthal

Good morning, everyone. And thank you for starting your day with us. This is probably the first meeting many of you are having this week, so we'll try and do our best to make an engaging, and productive. And with that, I'll dive right into Q1 performance. Our team has continued to make strong progress throughout the quarter in executing on our key objectives and driving sustainable growth. In particular, we grew our active customer base, expanded our products and services offerings, opened eight new retail stores and further enhance our digital capabilities. As we walk through our last earnings call, Omicron was particularly impactful for us in Q1 given the unique seasonality of our business. We believe Omicron resulted in approximately $15 million worth of lost sales in Q1. Revenue for the first quarter was $153.2 million up 10.3% versus the first quarter of 2021 and up 18% on a three-year CAGR basis. And while Q1 was the lowest growth in profitability quarter we expect to have this year, we are proud of the milestones we achieved despite the challenging backdrop.