Warby Parker stock rises on earnings beat, growing customer base

Warby Parker (WRBY) shares rise as the company's second quarter earnings beat on both the top and bottom line. The company also raised its full year 2023 outlook and saw a rise in its active customer count by 1.2%. Yahoo Finance Live takes a look at the company's results.

Video Transcript

BRAD SMITH: We're also watching shares of Warby Parker today. That stock is on the move this morning as we're tracking shares of WRBY. Do they have an alibi? Seems so. They're up by about 7%. After the eyeglass retailer saw a surprising jump in profit this quarter, Warby Parker saw average revenue per customer increase more than 9% in the last year. They also raised their full-year, 2023, outlook.

There, you're taking a look at some of the actuals versus the estimates. It was a beat on top and bottom line, as we mentioned here. And if you've been keeping tabs of shares of Warby Parker over the course of this year, it's been an interesting one. But all in, they're still higher by about 6.4% year-to-date. That's underperforming, though, some of the US major averages, especially the Nasdaq and the S&P 500.

JULIE HYMAN: A great irony of Warby Parker is when I go to their press release on their Investor Relations web page, man, this font is hard to read. It's faint, it's small--

BRAD SMITH: But they're testing your vision. They're testing your vision.

JULIE HYMAN: I'm not passing that test.

BRAD SMITH: They're trying to make us set up that new optometrist.

JULIE HYMAN: I would like a much more like large--

BRAD SMITH: Like the large font?

JULIE HYMAN: --something.

BRAD SMITH: Top of the pyramid. That is pretty small.

JULIE HYMAN: It's not easy to read. But they raised that forecast, as you mentioned. Now, they're looking for revenue growth of 9.5% to 11% versus last year for this full year. And they're looking for adjusted EBITDA of $52 million.

I mean, I think for any of these startup companies now-- and this goes for something like a Lyft as well, by the way, even though it's more mature in its journey. But I think investors have been focusing, for some time now, more on profitability than they were, whether that's by an EBITDA measure or by an absolute net income measure. And so I think signs of incremental progress are seen as positive by investors right now.

BRAD SMITH: But that contact lens business. I mean, if that continues to be the product and the service that more consumers continue to buy into instead of saying, hey, I want to get some fresh, new, fancy glasses. You've got a lot of fancy frames. I try to keep pace. And more--

JULIE HYMAN: You've got a lot more frames than I do.

BRAD SMITH: I just got to rotate them in and out here because I know you're coming with clean frame game here. So I got to try and keep pace. But at the end of the day, for Warby Parker and all of the different products that they've said that they need to move into and need to continue to drum up, for contact lenses, that's not the same type of margin and profitability that they've been able to see from some frames.