1. Investment Snapshot
2. Thesis
3. Valuation & Price Target
4. Business & Product Moat
5. People & Governance
6. Market & Macro
7. Financial Quality
8. Risk Register
9. Prediction Market
10. 𝕏 Posts
Discussion
1. Investment Snapshot
2. Thesis
3. Valuation & Price Target
4. Business & Product Moat
5. People & Governance
6. Market & Macro
7. Financial Quality
8. Risk Register
9. Prediction Market
10. 𝕏 Posts
Discussion
1. Investment Snapshot
2. Metrics vs Peers
3. Valuation
4. Offer Terms
5. Financial Statements
Discussion
Research report, target price, DCF and forensic scores are for subscribers. View plans
Symbol
WRBY
Listed on
2021-09-29
Sector
Health Care
Subsector
Health Care Equipment & Supplies
Offer Price
$40.00
Shares Offered
77.74M
$6.1B
Implied Upside vs Midpoint
Description
Note: This is NOT an IPO. This is a direct listing on the New York Stock Exchange. The company’s stock sold for $24.53 in private transactions this year, the prospectus says. **NOTE: The NYSE set a $40 reference price for Warby Parker’s stock on Tuesday, Sept. 28, 2021, after the U.S. stock market’s close. The reference price is offered as a guide. This price does not predict the opening price of the stock on Wednesday, when Warby Parker shares are expected to start trading on the NYSE. Goldman Sachs, Morgan Stanley and Allen & Co. will serve as the financial advisors on the direct listing. The Wall Street Journal reported on Aug. 24, 2021: “Warby Parker, which counts investment firm Tiger Global Management LLC and private equity firm Durable Capital Partners among its bigger backers, raised $245 million from private investors last fall, snagging a $3 billion valuation.” Neil Blumenthal and Dave Gilboa are our co-founders and co-CEOs. We’ve built a seamless shopping experience that meets customers where and how they want to shop, whether that’s on our website, on our mobile app, or in our more than 145 retail stores. We started Warby Parker 11 years ago to solve our own problems as frustrated consumers and to make a positive impact. Since our founding in 2010, we have pioneered ideas, designed products and developed technologies that help people see. We offer everything our customers need for happier eyes at a price that leaves them with money in their pocket, from designer-quality glasses (starting at $95, including prescription lenses) and contacts, to eye exams and vision tests—and they can meet us online, at our retail stores, or even at home. Wherever and whenever they need it, we’re there to make exceptional vision care simple and accessible. Delightful, too. Note: Net revenue and net loss figures are for the 12 months that ended on June 30, 2021, according to the prospectus. Note: Warby Parker updated its SEC filings on Sept. 21, 2021, by incorporating its press release dated Sept. 21, 2021, with its guidance for third-quarter and full-year financial performance.
| Metric | Value | Peer median | Among peers | Trend |
|---|---|---|---|---|
EV / revenue | 14.8x | 17.4x | ||
Revenue growth | 6.3% | 44.3% | ||
Gross margin | 58.9% | 66.7% | ||
Operating margin | -14.1% | -48.7% | ||
Net margin | -14.2% | -63.5% | ||
Free cash flow margin | 3.2% | -65.9% | ||
Rule of 40 | -3.2% | 9.9% | ||
Net cash / market cap | 5.1% | 1.9% | ||
Debt / equity | 0.00 | 0.00 | ||
Current ratio | 3.42 | 2.90 | ||
Stock comp / revenue | 11.4% | 5.3% | ||
9 premium metrics: DCF value / price, Growth the price needs: how common, Last 12 months vs full year and 6 more Unlock | ||||
Each filing is plotted ahead of the first trading day on the price chart.
| Filed | Form | Price range | Price | Shares offered | Deal size |
|---|---|---|---|---|---|
| 2021-08-24 | S-1 | — | — | 1,925,352 | — |
| 2021-09-09 | S-1/A | — | — | 77,741,942 | — |
| 2021-09-15 | S-1/A | — | — | 77,741,942 | — |
| 2021-09-29 | 424B4 | — | — | 77,741,942 | — |
Warby Parker Inc. income statement and balance sheet, FY Dec 2022 to FY Dec 2025, as reported in SEC filings.
| Metric | FY Dec 2022after listing | FY Dec 2023after listing | FY Dec 2024after listing | FY Dec 2025after listing |
|---|---|---|---|---|
| Revenue | $598M | $670M | $771M | $872M |
| Gross profit | $341M | $365M | $427M | $471M |
| Operating income | ($111M) | ($72.0M) | ($30.1M) | ($5.3M) |
| Net income | ($110M) | ($63.2M) | ($20.4M) | $1.6M |
| Revenue growth | — | 12.0% | 15.2% | 13.0% |
| Gross margin | 57.0% | 54.5% | 55.3% | 54.0% |
| Operating margin | −18.6% | −10.7% | −3.9% | −0.6% |
| Net margin | −18.5% | −9.4% | −2.6% | 0.2% |
| Metric | FY Dec 2022after listing | FY Dec 2023after listing | FY Dec 2024after listing | FY Dec 2025after listing |
|---|---|---|---|---|
| Total assets | $569M | — | $676M | $721M |
| Total liabilities | $282M | — | $336M | $353M |
| Total equity | $287M | $302M | $340M | $368M |
| Cash & equivalents | $209M | $217M | $254M | $286M |