Warby Parker Inc.’s net losses more than doubled in the third quarter on costs tied to its September listing on the New York Stock Exchange.
The eyewear disruptor’s net losses totaled $91 million in the quarter and included $42.4 million in stock-based compensation expense, $23.9 million in direct-listing expenses and a $7.8 million donation to the company’s foundation. A year earlier, losses tallied $41.4 million, while the company eked out a $1.4 million profit in the third quarter of 2019.
Revenues for the three months ended Sept. 30 grew 32 percent to $137.4 million from $104.1 million as Warby’s active customer count expanded by 23 percent to 2.2 million.
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Shares of the company rose 3.3 percent to $55.27 in morning trading.
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Neil Blumenthal, cofounder and co-chief executive officer, said: “We’re incredibly proud of the milestones we achieved in the third quarter, from opening our second optical lab to going public via a direct listing — and being the first public benefit corporation to do so. As we look ahead, we remain laser focused on executing against our growth strategies by increasing our active customer base, expanding our retail footprint and delivering innovative products and services that further our mission to inspire and impact the world with vision, purpose and style.”
Steve Miller, chief financial officer, added: “Our financial model remains grounded in steady active customer growth, consistent customer retention, and compelling customer economics, which we believe provides the framework for sustainable growth with increasing profitability for years to come.”
For the full year, Warby expects revenues to increase by 37 percent to 38 percent to a range of $539.5 million to $542 million. Thirty-five new stores are slated to be added, bringing the total to 161.
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