Shares of Warby Parker (WRBY 2.84%) were gaining today after the disruptive eyewear company posted better-than-expected top-line results in its first-quarter earnings report and raised its guidance for the year.
As a result, the stock was up 14.6% as of 11:27 a.m.
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Warby Parker is looking sharp
Revenue in the quarter rose 16.3% to $200 million, which beat the analyst consensus at $196.3 million and marked its fastest revenue growth since 2021, as demand is accelerating after a post-pandemic slowdown.
Warby saw growth in both its customer base and in average revenue per customer, which was up 9.6% to $296.
That revenue growth translated into profitability improvements as well, as gross margin rose 160 basis points to 56.7% due to stronger growth in glasses, its highest-margin product, efficiencies in its optical labs, and lower shipping costs.
It also gained leverage on selling, general, and administrative expenses, and adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) rose from $17.8 million to $22.4 million.
On the bottom line, its generally accepted accounting principles (GAAP) loss narrowed from $0.09 to $0.02, taking a significant step toward GAAP profitability.
What's next for Warby Parker
Investors were also pleased with Warby Parker's guidance, as the eyewear specialist raised its revenue forecast from $748 million-$758 million to $753 million-$761 million, calling for 12.5%-13.5% growth.
It also hiked its adjusted EBITDA guidance from $67 million to $70 million and continues to expect to open 40 new stores, continuing an aggressive expansion as it looks to consolidate a historically fragmented market.
With strong revenue growth, significant steps to profitability, and improved guidance, it's not surprising the stock is trading higher today.
