Company: WRBY
Filing Date: 2025-02-27
Form Type: 10-K
Source: 0001504776-25-000010
Chunk: 257

Company: Warby Parker Inc.
Filing Date: 2025-02-27
Form: 10-K
Item: Item 1
Chunk 257
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 included in Part II, Item 8 of this Annual Report on Form 10-K).

Interest and Other Income, Net

Year Ended December 31,20242023$ Change% Change($ in thousands)Interest and other income, net$10,597 $9,232 $1,365 14.8 %As a percentage of net revenue1.4 %1.4 %— %

Interest and other income, net increased by $1.4 million, or 14.8%, for the year ended December 31, 2024 compared to the same period in 2023 primarily due to interest on our increased cash and cash equivalents balance.

Provision for Income Taxes

Year Ended December 31,20242023$ Change% Change($ in thousands)Provision for income taxes$875 $433 $442 102.1 %As a percentage of net revenue0.1 %— %0.1 %

Provision for income taxes increased $0.4 million, or 102.1%, for the year ended December 31, 2024 compared to the same period in 2023 primarily due to the change in pre-tax loss in addition to the tax effects of stock-based compensation expense, depreciation expense, and differences in tax rates in state jurisdictions.

Comparison of the Years Ended December 31, 2023 and 2022

Net Revenue

Year Ended December 31,20232022$ Change% Change($ in thousands)Net revenue$669,765 $598,112 $71,653 12.0 %

Net revenue increased $71.7 million, or 12.0%, for the year ended December 31, 2023 compared to the same period in 2022. The growth in net revenue was primarily driven by an increase in Average Revenue per Customer, to $287 from $263 in the prior year period, as well as a 2.5% increase in Active Customers. Average Revenue per Customer growth was driven by an increase in units per order as customers took advantage of our bundling promotions and also purchased contacts or eye exams along with glasses in the same transaction.

65

Cost of Goods Sold, Gross Profit, and Gross Margin

Year Ended December 31,20232022$ Change% Change($ in thousands)Cost of goods sold$304,541 $257,050 $47,491 18.5 %Gross profit365,224 341,