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Warby Parker (NYSE:WRBY) reported revenue rose 10.5% year-over-year to $161.9M in Q4. Average revenue per customer increased 9.3% to $287. The company's total count of active customers increased 2.5% to 2.33M.
Gross margin was 53.8% compared to 55.1% in the prior year. The decrease in gross margin was primarily driven by the sales growth of contact lenses which are sold at a lower margin than glasses, increased doctor salaries, as the number of stores offering eye exams grew, and increases in store occupancy costs. Those impacts were partially offset by increased progressives penetration, increased efficiencies in owned labs, and lower outbound customer shipping costs as a percent of revenue.
Adjusted EBITDA was $9.4M vs. $8.6M a year ago. EPS came in at -$0.16 vs. -$0.12 consensus and -$0.18 a year ago. On the balance sheet, Warby Parker (WRBY) ended the quarter with $217M in cash holdings.
Warby Parker (WRBY) issued guidance for full-year revenue of $748M to $758M vs. $751M consensus and adjusted EBITDA of $67M vs. $65.6M consensus.
"Looking to 2024, we’re excited to meet millions of customers where and how they want to shop as we expand our retail presence, deploy disciplined marketing spend to support growth across our omnichannel experiences, and nearly double the number of insured lives who can use their in-network vision benefits with Warby Parker to over 34 million individuals," noted Co-Founder and Co-CEO Dave Gilboa.
Shares of Warby Parker (WRBY) fell 3.59% in postmarket trading to $14.50 vs. the 52-week trading range of $9.50 to $16.49.