Company: WRBY
Filing Date: 2025-02-27
Form Type: 10-K
Source: 0001504776-25-000010
Chunk: 121

Company: Warby Parker Inc.
Filing Date: 2025-02-27
Form: 10-K
Item: Item 1
Chunk 121
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 Try-On program costs, and other initiatives. We expect SG&A to increase in absolute dollars over time and to fluctuate as a percentage of revenue due to the anticipated growth of our business, intentional investments in marketing, and changing prices of goods and services caused by inflation and other macroeconomic factors. SG&A is expensed in the period in which it is incurred.

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Interest and Other Income, Net

Interest and other income, net, consists primarily of interest generated from our cash and cash equivalents balances net of interest incurred on borrowings and fees on our undrawn line of credit, and is recognized as incurred. We expect our interest and other income costs to fluctuate based on our future bank balances, credit line utilization, and the interest rate environment.

Provision for Income Taxes

Provision for income taxes consists of income taxes related to foreign and domestic federal and state jurisdictions in which we conduct business, adjusted for allowable credits, deductions, and valuation allowance against deferred tax assets.

Comparison of the Years Ended December 31, 2024 and 2023

Net Revenue

Year Ended December 31,20242023$ Change% Change($ in thousands)Net revenue$771,315 $669,765 $101,550 15.2 %

Net revenue increased $101.6 million, or 15.2%, for the year ended December 31, 2024 compared to the same period in 2023. Active Customers increased 7.8% and Average Revenue per Customer increased to $307 from $287 in the prior year period. Average Revenue per Customer growth was primarily driven by our glasses business, which saw strong adoption of precision progressives, our highest priced lens option which launched in April 2023, growth in our lens replacement service that was launched in the fourth quarter of 2023, and continued uptake of our higher priced frames, as well as by the impact of customers purchasing contacts or eye exams along with glasses in the same transaction.

Cost of Goods Sold, Gross Profit, and Gross Margin

Year Ended December 31,20242023$ Change% Change($ in thousands)Cost of goods sold$344,481 $304,541 $39,940 13.1 %Gross profit426,834 365,224 61,610 16.9 %Gross margin55.3 %54.5 %0.8 %

Cost of goods sold increased by $39.9 million, or 13.1%, for the year