Warby Parker Inc. (NYSE:WRBY) Q1 2024 Earnings Conference Call May 9, 2024 8:00 AM ET

Company Participants

Jaclyn Berkley - Head of IR
Neil Blumenthal - Co-Founders and Co-CEO
Dave Gilboa - Co-Founders and Co-CEO
Steve Miller - Senior Vice President and CFO

Conference Call Participants

Oliver Chen - TD Cowen
Dana Telsey - Telsey Group
Amy Teske - Baird
Mark Mahaney - Evercore ISI
Janine Stichter - BTIG
Dylan Carden - William Blair
Evan Dorschner - Goldman Sachs

Operator

Hello, and welcome to today's Warby Parker First Quarter 2024 Conference Call. My name is Bailey and I will be the moderator for today. All lines will be muted during the presentation portion of the call with an opportunity for questions-and-answers at the end. [Operator Instructions]

I'd now like to pass the conference over to Jaclyn Berkley, Head of the Investor Relations. Please go ahead.

Jaclyn Berkley

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 investor.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 May 09, 2024, 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 our non-GAAP measures to the most directly comparable U.S. GAAP measures can be found in this morning's press release and our slide deck available on our IR website.

With that, I'll pass it over to Neil to kick us off.

Neil Blumenthal

Thank you, Jacqueline, and good morning, everyone. The momentum in our business continued to build throughout the first quarter, primarily driven by strength in our retail channel and glasses business. We are pleased to have delivered record high quarterly revenue and adjusted EBITDA in Q1, along with improvements to gross margin. Our Q1 net revenue of $200 million was up 16.3% year-over-year and adjusted gross margin was 56.9%, up from 55.2% in Q1 last year. We also delivered adjusted EBITDA of $22.4 million, representing an 11.2% margin.