Warby Parker grapples with profitability despite spike in 2021 revenues, active customers

By

Benjamin Fitzgerald

Published
Mar 18, 2022

Warby Parker announced on Thursday total revenues lifted 37% for the full year 2021, on the back of a 22% spike in active customers, taking the eyewear brand's consumer base to 2.2 million for the twelve months.

New York-based Warby Parker said ​full-year net revenue increased 37.4% to $540.8 million, compared to 2020, and increased 46% on 2019. For the fourth quarter ending December 31, the firm said revenues increased 17.8% to $132.9 million, compared to the prior year's quarter, equating to an increase of 41.9% compared to the fourth quarter 2019.

Despite the stellar sales result, net losses widened to $45.9 million during the fourth quarter, primarily as a result of the increase in selling, general administrative expenses relating to ​stock-based compensation expense and related employer payroll taxes. For the full year, net losses grew to $144.3 million on the same SG&A expenses faced in the fourth quarter, said the company in a press release.

In 2021, the company increased its active customer based by 21.5% to 2.2 million year over year, with average revenue per customer increasing 13% to $246.

“We operate in a large and growing category and are emerging from the pandemic in a position of strength. During 2021, our business grew significantly, expanded profitability, and gained share,” said Warby Parker co-founder and co-CEO Dave Gilboa.

“From broadening our glasses, contacts, and exam offerings to opening 40 new stores and introducing first-to-market digital tools, this year we look forward to solving more problems, delighting more customers, and creating even more value and impact for our stakeholders.”

Looking ahead, Warby Parker said it expects 2022 net revenues of $650 to $660 million, representing growth 20% to 22% versus 2021.