NEW YORK—Warby Parker Inc. (NYSE: WRBY), a direct-to-consumer lifestyle brand focused on vision for all, announced financial results for the fourth quarter and full year ending Dec. 31, 2023. Fourth quarter net revenue increased $15.4 million, or 10.5 percent, to $161.9 million compared with fourth quarter 2022. Full year net revenue increased $71.7 million, or 12.0 percent, to $669.8 million compared with full year 2022. The average revenue per customer increased 9.3 percent year over year to $287.

“2023 marked our second full year as a public company and one in which we executed on our commitment to growing sustainably, delivering double-digit revenue growth each quarter while improving margins and creating exceptional customer experiences,” said co-founder and co-CEO Neil Blumenthal.

“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,” added co-founder and co-CEO Dave Gilboa.

GAAP net loss improved $1.2 million to $19.0 million in Q4, primarily as a result of an increase in gross profit. For full-year 2023, GAAP net loss improved $47.2 million to $63.2 million, primarily as a result of the increase in gross profit and the decrease in SG&A.

Gross margin in the fourth quarter was 53.8 percent compared with 55.1 percent 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 as a percent of revenue as the company grew its store base from 200 stores as of Dec. 31, 2022, to 237 stores as of Dec. 31, 2023.

Gross margin for full-year 2023 was 54.5 percent compared to 57.0 percent 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 as a percent of revenue as the company grew its store base from 200 stores as of Dec. 31, 2022, to 237 stores as of Dec. 31, 2023. 

Warby Parker ended 2023 with $216.9 million in cash and cash equivalents. The company also entered into a new $120 million revolving credit facility with JPMorgan Chase Bank, N.A., Citibank, N.A., and other lenders from time to time party thereto, which remains undrawn, the company said.

In February 2024, Warby Parker expanded its relationship with Versant Health, Inc., a wholly-owned subsidiary of MetLife, Inc., and one of the nation’s leading administrators of managed vision care. This expansion will bring an additional 15 million lives in-network with Warby Parker, nearly doubling the number of lives with in-network access to Warby Parker to more than 34 million. The company expects members under these plans to be able to access their in-network benefits later this year.

For the full year 2024, Warby Parker provided guidance with expected revenue of $748 million to $758 million, representing approximately 12 percent to 13 percent growth versus full year 2023. The company also anticipates 40 new store openings.

“As a leadership team, we remain focused on delivering strong topline and bottom-line results that speak to Warby Parker’s brand strength, disciplined cost management, and strategic vision as a holistic vision care company,” said chief financial officer Steve Miller.