Warby Parker Inc. (NYSE:WRBY) Q2 2024 Earnings Conference Call August 8, 2024 8:00 AM ET

Company Participants

Jaclyn Berkley - Head Investor Relations
Dave Gilboa - Co-Founders & Co-Chief Executive Officer
Neil Blumenthal - Co-Founders & Co-Chief Executive Officer
Steve Miller - Senior Vice President & Chief Financial Officer

Conference Call Participants

Mark Altschwager - Baird
Oliver Chen - TD Cowen
Janine Stichter - BTIG
Dylan Carden - William Blair
Brooke Roach - Goldman Sachs
Alex Straton - Morgan Stanley

Operator

Hello, everyone, and welcome to the Warby Parker Second Quarter 2024 Earnings Call. My name is Seb and I will be the operator for your call today. [Operator Instructions]

I will now hand the floor over to Jaclyn Berkley to begin. 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 August 8, 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 Dave to kick us off.

Dave Gilboa

Thank you, Jaclyn, and good morning, everyone. We're pleased to share that our team executed another strong quarter in Q2 delivering net revenue and adjusted EBITDA ahead of the high end of our guidance, while making strong progress against our key long-term strategic initiatives.

On a year-over-year basis, we grew net revenue 13.3% to $188.2 million and improved gross margin 140 basis points to approximately 56%. We also grew adjusted EBITDA nearly 40% to $19.6 million, representing a 10.4% margin and generated $14 million of free cash flow in the quarter.