Warby Parker (WRBY) 8 Nov 232023 Q3 Earnings call transcript

Hello, and welcome to today's Warby Parker Inc. 3Q '23 Earnings Conference Call. My name is Bailey, and I'll be your moderator for today. All lines will be muted during the presentation portion of the call with an opportunity for questions and answers at the end. [Operator Instructions] I'd now like to pass the conference over to our host, Jaclyn Berkley, Head of Investor Relations. you're when ahead go ready. Please

good Thank everyone. you, and morning,

Neil Dave Steve Gilboa, with Officer. Senior me co-Founders and are today Financial Chief alongside Here our Blumenthal and President and Vice Miller, co-CEOs,

have we a Before we couple reminders. of begin,

available Our at our investors.warbyparker.com. presentation website on earnings slide release and are

on materially result During this from uncertainties. or as a comments those various our nature. risks Actual will be presentation, expressed call forward-looking we results of and and making in the may differ implied

these latest risks, on including These forward-looking publicly to of we review on more the Risk XXXX filings, revise some For or are information update information XX-K. SEC please the X, law, November assume Factors and, company's about no based Form of statements statements. our forward-looking in annual except obligation titled as by section as the company's report required

financial the measures found be press GAAP. measures of non-GAAP to I'll GAAP morning's not a it that, non-GAAP Additionally, substitute in in we with this slide measures And Neil can certain prepared and addition measures to measures. kick our will us website. directly non-GAAP to are most over reconciliation our performance of accordance and These for discussing financial A financial U.S. IR in available release comparable deck pass be with off. on to our U.S.

fiscal updated for forward the drivers discussing outlook to of Jaclyn, you, look performance everyone. good and and QX we Thank our Today, morning, our XXXX.

We're full-year to multichannel historical of long-term optical marketing our has vision our quarterly and and us believe industry Based adjusted million approach care driver, overall holistic on sustainable growth. our been proposition because consumers, environment, every our and how that, into backdrop Starting recent of relationship our to we value to our outperformance industry proposition net the and X.X% represents $XX lower Dave value business, and of growth and our revenue to we feedback for when outlook million year. and year; investments each our with time first our will our broader both our particularly strategic this drivers and norms. the report innovation, strong through Regardless shopping the in Our quickly our revenue unmatched EBITDA direct than our innovation, growth the unmatched and XX.X% for customer of design pleased $XXX.X position I of during experience. customer-centric remainder these to the the from a the for within have up the data with manufacturing contributed eyewear we're incorporate ability margin. strongest of results of guidance. With aspect raising was results of QX outlook year-over-year, a QX, go

channel, led broad response innovation where retail approach our call, frame a from introduced and portfolio side, to Progressive's has to revenue called constructions we the that to we is particularly the our this that lens On higher. a Progressives. We offering demand, consumer-centric Precision premium customer. support QX penetration introduced shared progressives On average lens customer product in novel per

elsewhere. overall. all XX.X% Progressives Precision at given We response and XX.X% of which In from as Metal up launched customers, prescription eyewear $XXX in starts glasses all was of represent market Progressives space the XX% quality believe cost and significant and collection, In at our up average products total white developed there growth is we margin for September, future overall approximately our order to value provide QX Memory similar Our lift customer frames. return flexible like and of our We $X,XXX frame, their bend to both more the innovative $XXX made and and exceptional value lighter for Progressives often for of start to Precision original delivering of nose including material lenses arms last QX, that the more while Progressives all-in, glasses, titanium use is coatings. superior and, bridge frames frames to and alloy to price in than that the our year. a demand and shape. gross allows these sold, weight

collaboration several stores. Memory other brand McFetridge, addition we artist Fall to of In the longtime find and Metal, this quarter, our a Geoff whose our you X collection can Circa a of launched including collections our friend collection, in LA-based second already with

have seen was and of at part pricing at maintained more have structure an assortment more been up proposition, we've exceptional We're we and revenue frames, with to our core customers affordable Parker's has of Warby customers our to customers. customer as believe single-vision average XX% than trust In more per price price ever continues we for to encouraged and $XXX. price we've come quality. And integral pricing while that we assortment, higher our $XX constructions expanded our coatings, new ever. X, innovative and before. resistance, it year-over-year Since lenses us now day and Our designs simple, introduced complex spending little points, currently that, offer we've value QX, our attract than are

to addition innovation, continually investments to make enhance we In our technology experience. product customer

areas. X on focused we quarter, key This

that automates tool conversion broadly which efficiency enhance use roll productivity. our drives previously example is great The manual turn and required and measurements can to optician leveraging in feedback the to seen first was in-store higher pilot heard plan time-consuming the gains coming that optical opticians in-house more technology stores the out they've from quarters. processes. efficiency, this in about our We've One

in Another rolling with improved tool to prescriptions early AI of transcription the speed and facilitate out uses the we accuracy. stage of are that

our the try-on we customer into parts journey. tool incorporated of Second, in virtual additional QX,

help frame. find We process As developed their more e-commerce a on a to convert. are face, our see technology find fitting pair customers first-of-its-kind leverages reminder, virtual try-on in-house the that, perfect to likely they if customers of

more to invest virtual customers try-on introduce to than We capabilities. our ever its are continue to future and excited to in

booking lead to of We've higher experience online customer, stores. nearby which more Warby the time. support exams to finding expect eye online, retail and per seen bookings Parker conversion improved eye and over exam we already average revenue improvements generate these we Third,

of the Franklin expanding of Knoxville in new and coupled The Michigan stores, in we with Tennessee, quarter. current expanded stores states the our environment. revenue QX addition an e-commerce Grand last second invest strong recent with further and In year, year-over-year, Retail growth store XX% continued improving to XX and most by even was entered since productive have QX, including new driven consistently we base, We in markets, in our which channel. our the economics driver like highly unit stores. Rapids, delivered including demand of Florida, XX Gainesville, our the additions of increased

suburban outside our more New York, like locations Jersey We also to continue Northern largest and Philadelphia. New infill just markets some

target X-wall Our generate in investing our new pay stores EBITDA line months XX continue with strong adjusted XX%, we to margins growth. continue plan and back to so of within store in

conversion the efficient of non-exam In our an exam exam addition our stores care. location to advancing We holistic nearly and, exam customer highly in XX% sales prescription are that stores than goal takes find drive eye that in eye capabilities. QX with providing at in-store acquisition integral saw ASP same vehicles, a have the trends higher and XXXX Every of Stores consistent stores we've are place. store includes purchased being retail glasses traffic In industry-wide, opened new successful spite QX, are XXX% in our of we customer. we versus of also our highest been to leaders early margin driving Progressives, in other macro XXXX, shared productivity gateway highest and headwinds, continued August. revenue product. per the recent In scaling and higher store

the shared opened see new pleased contacts we growth that we to return to penetration for of business, at come to was we we expected in As of online. a and the in year-over-year, Last U.S., XX e-commerce of X% year-to-date. the a Longer-term, our XXXX, positive further which revenue optical report on existing the comping and point representing HX. while majority we we shops significant believe for can growth the look add open small already year, total track markets In XXX e-commerce remainder still opportunity U.S. a are by our in in having fraction stores that XX,XXX marketing is least to we're channel QX, XX driven quarter, some of at stores years to of of up the the to

near-term, While we be QX, to are saw in including we and linear, periods the by of the encouraged see e-commerce expect lower growth QX. in in we growth recovery may higher or we don't

it of is product believe we and towards e-commerce our I'll ahead, overall sustainable other now, And to business take on over the customer is us positive that categories and to metrics. Dave our Looking some line growth. trend path hand through the

Neil. Thanks,

customer and our was results attracting QX strong care value. lifetime our of which customers holistic driver higher offering, new is key third The expanded vision driving

revenue, Our points contacts record QX below strong quarter, delivering year business up future growth. of of well a meaningful for had average XX% XXX is the X.X% and and still This basis versus ago. a represents industry opportunity growth a representing

glasses-only and and customer seamless, contacts and also for to and of spent XX discussing a cycle QX additional their and subscription-like of invest gross these and us been the an more driver last to compared e-commerce gross first in versus tend our prescription customer care new a continue have deliver buy X.X% customers exams, more drive business, purchase skew upside key deliver our to To new Scaling holistic frequency added first-ever with ability and care. eyewear get exams to experience percentage and be how we to team us average, other in holistic have are purchases engagement customers margin lower lenses In higher their X.X% this optometrists spend with in provide subsequent provide purchase their On their where priority best-in-class together strategic Contacts given our X.Xx business, a contacts One that our contacts customer brought and leaders margin in patient lifetime to eye frequently years. purchase continues value. our contact and, a forward, to in we online.Eye While more development, offerings, and Vision year. to looking which continue dollars. gateway exceptional to to patient customers their continue and purchases, revenue product represented order support year higher optometrists to store quarter, October, are glasses we spend and professional our for accretive versus vision experiences. leaders exam time net Summit, to

physical more convenient In efficient. to more opening by more with accessible, care make optometrists, opportunity hiring to eye addition stores and excited be we and the to continue to exam use suites telehealth

scale channel. this prescriptions patients see number their through vision strong minutes, home virtual we video-assisted In in continue also and of small we eye this to health suites. engage testing using Our exam believe to in PC under that the a remotely to to from test or are efficiently capacity stores, efforts app offer to patients XX live technology renew directly our exam engagement telehealth model. enables in our offers with exams who and growth with combination optometrists stores add opportunity comprehensive doctors examine our evaluations sitting through our We

disease continue imaging out dilation, retinal exam to in which a pupil diagnostics without in we and resulting roll Finally, retention. to drive advanced patient experience, we expect loyalty more suites, better enabling

are the contacts expect value significant and seeing to we front both long-term progress these We the exam investments pleased on time. with over deliver are and

us. their to vision QX, our base to higher in-network insurance use to it customers customers we than benefits. insurance the of in XX% of insurance. saw usage out-of-network More We make addition of And customer in vision efforts invest in continue easier also with our utilization continued across to benefits have benefits for

even possible. reimbursement, services Parker our While ensure affordable that, their in-network as want as elsewhere, Warby than lower our without that are spend products recognize is we customers at purchasing to out-of-pocket and

partnerships Looking while our it and in capabilities reinvestment our additional making their make ahead, with we fourth investments brand. in driver us. easier The for leverage continue customers to longer-term marketing to out-of-network to benefits in-network and explore our was

marketing expense following highlighted, and the low year-over-year a our to dollars XXXX. spend of channel Neil in of this as e-commerce a marked expect between quarter that With the second rebalance of began remain third teens. percent increase the in in pre-pandemic levels, the revenue As mix back quarter return to to our marketing we stores

QX. up active the of at marketing are we X.X%, growth and to active we and from QX seeing in of growth. customer expect would inflect marketing spend comped with in as line X.X% QX, expectation the levels customer a customer drive year-over-year steady are pleased saw new with In XX-month positively our sustainable our trailing end growth these up and We that efficiency

on reminder, is still metric, XX% is our a basis. As XX-month spend marketing down this a a LTM trailing and

XX-month expect from a to increases growth and As customer see basis, trailing marketing spend active current improve continue year-over-year on levels. further to rates we

to continue over metrics including most XX of patterns we and and XXX% recent XX% Importantly, roughly retention a see revenue cohorts, with history. across retention purchasing months of cohort months strong over X the years for repeat rate customer purchase XX

you in In to to engagement long-term growth, and transactions, the not platforms awareness more the to top-of-funnel and future a and customer drive boost third to efforts, campaign updating coming We've in addition in fuel strong throughout represents during different our to forward seen brand brands to near-term quarters. acquisition core awareness investing is acquisition the we campaign commitment necessarily campaign designed media efforts our customer to our look our demographics. drive is growth. distinct from primary launched across that it This quarter

campaign, Select featured Marvel to X optical Spider-Man an expand Marvel Sony worked recent addition fits helping of back example Marvel, only and Entertainment others, giving we which brand frames, character-inspired launch cultural align highly-anticipated video of to Insomniac of Insomniac moments strategically Parker with and Parker with X itself. capsule Entertainment, products, Parker and release our supporting a frames. Interactive Warby brand audience, a we've collection to further our was in-game that launched game. continued X and Games the of billboards our are with was tied Sony in the the Warby long-time to that the Warby Interactive brands, unique collaboration Games In with mission exciting and perfectly brand, to with a working Working storefront real-world and Spiderman. And with Marvel, the game commitment to the

a impact most our the program. broader outcomes recent of we're Pair rewarding Buy is our having a of through the one Give Finally, performance Pair,

now pair review better reminder, XX that they globally of our our work and to to And as business it distributed someone a in of XX glasses people been I'll we grows more turn details over learn, to share be and As We're meaningful our Warby, for excited now than is outcomes. the that program, Parker Steve meaning distributed Team pairs the performance. economic continue now glasses feels need the achieve have sold, scales, million ever. need. more have that, Warby every of financial a pair Across to proud impact via to glasses to million

XX.X% Thanks, X% our $XXX of revenue or XX% of we revenue Neil XXXX. and From increased increased above year-over-year Dave. Starting end versus to with $XXX e-commerce year-over-year revenue, to perspective, a XX%. and up high generated XX.X% retail revenue guidance range of $XXX.X while QX QX million million, up of the channel million,

with represented compared XX% XXXX overall business the mix. For quarter, e-commerce channel in of third in to and line our XX% pre-pandemic our

our of contact which is in inflection of scaling and mentioned, growth, continued e-commerce returning the the revenue business, positive by online. Neil driven to As marketing the spend, was majority

saw lower the growth QX, the periods by we see expect mentioned, linear we Neil near-term, the QX. some in encouraged As may in be growth to we e-commerce were don't recovery including higher of and or in while

QX finishing we over Looking the XX QX months, growth. overall that a XX our the XX e-commerce stores. positive the sustainable line period in QX ahead, XXX in and is was stores business path versus last productivity trend and new towards past same is Retail We believe opened on year. with XXX%

as the opened reminder, retail in per define period. of a As average number sales we productivity stores

million to stores as XX into quarter in we eye ago, continue the to of offering capabilities, four were and XXX, to stores locations. of locations finished a of the XX% more QX cohorts total the stores increase the we markets as mature customer of perform exam with number X increased XX All add stores or revenue of versus within an fleet average $XXX. newer markets. those the per our same our average our new a ramp. perspective, X.X year-over-year were quarter existing an and new of customer eye expansions in period XXX X.X% which continue entries So exams customers, From to year, year even include active XX% per new brought

As growth. for increase our XX.X% in runway approximately few prescription by of highest product, with per and a from as XXXX, glasses average Progressives we're to compared Neil percentage of a third customer, an at factors, was also mentioned, pleased price the well represented This our mix the XX.X% of average Progressives point leaving market which starting QX driven quarter gross in still revenue eye in category product lens including substantial our business ramping increase up XX%, sold Progressives a margin continued of of sales. both when contact below and XXXX. highest is exam total are $XXX. and

We our as have From we brand our business to offers that X.X% lenses into 'XX a care vision to QX eye customers. glasses, also one increased continue move QX 'XX, to to on exams contacts evolve make progress and mix. glasses-only of X.X% from into holistic from contact

of the opportunities period, billion versus each and eye the accounting business retailers. care $XX optical both same future these Contacts a has large our well-underpenetrated other percent X.X% of industry. $XX revenue U.S. eye We mix. national portions X.X% billion-plus increased Over for remain from products growth, optical of for exams represent as for to sales of

gross on margin. Moving to

customer of rents a frames, optometrist of costs, margin a depreciation our build-outs. store and labs, lenses, including gross optical shipping, range store As reminder, salaries, accounts for the

for also optometrists compensation optical employees. expense margin stock-based gross and includes lab Our our

comparability, excludes speaking compensation. gross to be will adjusted I which stock-based For margin,

eye than year but, to expanding of by evolve into our we compared decrease gross year-over-year QX expand vision growing of accretive average these over as to revenue of gross a our all and customers' segments and XX.X% contact have was of and medium lenses key in per last exams optical XX.X% is Eye care of dollars and needs. vision margin strong was and and margin core driver eye profiles this in our the of a contacts eyeglasses holistic scaling contacts customer. Third holistic industry. margin The XX.X% Furthermore, care company the serve us driven lower allow a part long-term, quarter large into to gross offering year. growth exams adjusted are and care offering QX of

addition, purchase purchase frequency a contact cycle. higher have and In subscription-like lenses

continued gross deleverage areas portion the X care. represent experienced cost also are in margin retail to of goods, year-over-year our salaries, and linked We that which into fixed directly eye our expansion of more optometrist occupancy

an new growth to store In stores. count XX in specifically, Our in from store led we depreciation naturally rents opened store and build-outs. increase has QX

quarter represents As of partially with XXXX, exams business We or directly optometrist of result in this salaries. rates. with QX exam a investment to the effects. control an optometrist are This end greater engage both tailwinds experience, stores operated recognized margin capabilities from employed as believe stores XXX the XXX long-term revenue offset increase where locations we benefit higher at the we ongoing these that of accretive of a act and, There end from customer and revenue PC the year. conversion an over exam few will last third and to the in-store of therefore, XX new eye additional XX%, and exam

margin of a XX.X% priced scale quarter, our ago. prescription and the highest basis In business. our up highest for units, XXX Progressives First, which versus eyeglass is points Progressives accounted to year gross we continue third

our York we prescription the orders Secondly, to labs New owned scale Nevada. portion at in we that of and X continue in-source optical glasses

with Shifting facilities and result rates margin our gross Scores, continued Net lower to expect benefits faster We to along in Promoter times. higher gears continued turnaround at SG&A. refund these scaling

Adjusted in point of and a of compared in depreciation business revenue and XX expense, adjusted SG&A structure XX% our due the August cost in for quarter of last we in As or primarily salary general corporate adjusted X charitable by and expense, began like by SG&A a SG&A a marketing including including marketing includes year, The revenue. retail main year, salary program; QX million, spend. equity of donations. experience spend was in we SG&A costs lower in of particular. compensation overhead of driven million, and employees; basis corporate these XX.X% as partially our XXXX was SG&A headquarters, increase spend SG&A In noncash spend, reductions salary planned expenses, and this adjustments home decrease $XX.X marketing to offset covering expenses. reminder, made $XX.X excludes try-on components: anniversary-ing in percentage our revenue to pullbacks Adjusted general to customer our QX stock-based or

Marketing percent revenue. For period XXX XX.X% the a in last the at $XX.X for first Warby up was adjusted revenue brand versus same part of in SG&A driving revenue This million in of decrease as X months for the of XX% spend campaign of year, XX.X% year, of is driven this of a XX.X% quarter year, and period longer-term basis awareness came $XX.X spend last points. million, Parker. at the new from or aimed same our by

adjusted In adjusted representing EBITDA third now X% to which revenue X.X%, EBITDA EBITDA quarter, EBITDA. or of of adjusted period. the we million, year-ago adjusted margin of $XX.X of to compares an generated million, in $XX Turning the

million adjusted adjusted we margin period XXX adjusted $XX.X months EBITDA year. basis, margin generated compared this $XX.X For year. last year, X.X% and September adjusted million last by compared and adjusted EBITDA same to to the the EBITDA points X.X% we a basis increased for EBITDA of ended EBITDA year-to-date of of X of of margin On

operations. We $XXX now support finished balance with deliberately in sheet. million which Turning reflecting cash, to and quarter the position, continue our will we to our to growth a sheet deploy strong balance

of credit $XXX credit for to can upsize $X letters million we other undrawn than an that of have facility $XXX also million, We million.

August. year-to-date and we the raising Based our guidance of of Now the updated XXXX, our full-year strong on rest view performance outlook. call on QX in to outlined we're our

in expect we've to of normalize our anticipate Dave take compensation guidance. $XXX net November, the fourth that, million, Through our to XXXX. of adjusted midpoint week XXX%. midpoint approximately From our EBITDA the of range. EBITDA at to with of representing revenue of approximately revenue mid-XXs adjusted line we to now net prior as in expect million still compensation XX% we're a stock-based growth gross of of percent Operator, revenue of X% approximately co-CEOs $XXX revenue for I of growth margin in in the approximately guiding million, range XX-day XXXX to at year. XX Q&A. margin XX%. to net still midpoint result at first following: XXXX line retail perspective, with Adjusted to XXXX. which We both trailing the roughly X% With new to X% our or top X% we're of still of grants equates X.X%, million, the $XXX We observed XX.X% XXXX, the bottom revenue $XX.X of of guidance, to range. pleased stock-based For With guidance in is as open XX% $XXX revenue to your Neil, guiding as of compared XXXX. compensation net EBITDA versus and million above the the percentage to our forecast Stock-based the to revenue this a the line productivity late a forecasting in line to We're open quarter, for questions. a to an respect multiyear are of and margin stores years of please be equity long-term

Mark Our line comes from [Operator from first the of Evercore. Instructions] Mahaney today question

please. questions, Two Okay.

that on rates that the levels. customer of we in customer that the quarter? set or from about your so you Is forward? to XXX qualify I expansion, bit, September pace the little bps referred the think have And cadence a improve to maybe bit? how on double-click expect? you'll margins, in current continue end going we is then, continue should should think the active to to the that proxy quantify should up EBITDA that that either this What's saw XXX just EBITDA of a for business still Is Dave, a growth margin Steve, Could forward? that you good we of growth comments it, going active little

is This Dave.

growth touching Just customer active the on first.

metric. is a trailing XX-month As this a reminder,

it easier year, even the multiple as call for customer new to report we of seeing and though a on, people into functionality for that point. we a marketing to factor store that we so, the active our last XX% made investments expecting other the our our mentioned given And QX marketing active in customer one customer kind transact will in to accounts. us customer had over continue next And that we're single we trends the to we're QX trailing as result, returns of members we account. the call, we're marketing a that few our as make seeing year-over-year X we're be and the count We're in XX-month now, we the to expected. of with reporting growth what QX a we walk household cuts is classes expected And expect account, that way a continue under family basis the impacting that, number we the have low seen to introduced half account. might kids at And continue efficiency growth under the noted where trend is as multi-person multiple increase beyond.The into from quarters, more and on we're to our with customer accounts that under that and marketing and that's serving Right active positively. pleased husband, purchase same spend wife on of back point,

see in the that, we coming And expecting together, so, growth also we impacting spite the purchasing as quarters are to households of general. see these that's in continued of more metric But in positive

an our it wanted on of adjusted the X.X% out of as increase from this time, QX adjusted off look as this annual an Mark, call would on X.X% adjusted that number we're really updated points benchmark, year HX from X.X% year. next early to this of to be provide for what of XXX for to improvement guided We'll margins X.X% year.I be annual add just And should year increase incremental relates to basis of incremental basis, year to At perspective that the year. each we in an EBITDA year. on we we that EBITDA basis still this point the adjusted of at level EBITDA margin your EBITDA were last XXX to If last year going planning on to last which question HX XXX an the margins used improvement. HX points of

improvement is benchmarked on points, annual is roughly against basis just XXX So basis the basis, an HX. XXX which the versus points

line The comes Sandler. Edward from the next of from Pipa question today Yruma

I some some gross growth offset within on know of And a the bit. help the I'd click time know guys And higher where frames, some in mix? recent quarters, mixed stand does a in the kind Understand private pretty of has of driver? of introduced of guess price materials margin gross that terms point drag. the second, been percent you've product? assortment. the that that interesting like that will then, I you contacts. margin you I guess little that of spent maybe what's vehicles label product to I about a talking down the success have lot of

to known always and we which important contacts, was brand, would the the the fact have market. and ones a constitute brands, other the overall look than label sell. our that contact contacts percent be prescriptions you launched to we we're customers years other and and (indiscernible) just particularly of brand our you that because direct-to-consumer first And we with, right thought need the others. sort higher overall sales as lens valid our vast and a we a be own written use have private When when was it was the launch a Neil. of a we relatively majority that J&J we'll on the contact gross way to option, ago, said, generally it is Alcon with at being just big vast will to prescription, is introduce fact that, couple That of Scout a from sell that This contacts world. purchase overall that of majority But lifestyle or margin those and as knew to thought the contacts, contacts prescription.So third-party it of that that and the contracts our we brand market continue the small

sort right sort to us to invest that and a out continue broader our higher are frames higher-priced frame in are of You see of assortment. you'll point margin,

to seen not from exceptional customers, resistance delivering really important have We we're and it's our price us value. that

always So while or And deliver $XXX sold to several over pricing for $XXX, ethos if $XXX exceptional starting our would we core at they value. not strategies for in $X,XXX. that's locations hundred, now be have frames just to and our other at or

today line The next Roach Goldman Sachs. from question from the Brooke of comes

and could today I trends XQ that XQ elaborate the traffic through market future outlook of you've provided growth on in basis? was quarter does marketplace that's your you fourth as you've in How moved hoping terms into of your you're seeing on the and this view conservative a conversion the in total more guide. driving comparable inform

for productivity and the fluctuate our traffic and to course before report our store as thus is store now trailing of a the the number we XXX% far question. on thanks most quarter. XX-day that relates XX-day basis. consistent is number of trends it earnings will the We're productivity metric conversion. as week that recent The trailing quarter each seeing for That over call,

higher So we've will several as is we've we that the so customer relates quarters. to to per we'll experiencing for have industry it's XX-day seen for and the productivity. been not AOV a from that stores that's store I revenue consistent conversion given trailing period.And our as has a relates evolves quarter necessarily quantification basis ramp traffic as busy holiday the offset on perspective it that's see the lower up and the number color it higher as What trends in that higher say average and trends consistent

And the yet months the and uncertainty. significant demand there's at been the flowing few of in over to we as disruption years, still over category continued and seen last from of category. around weather XXXX some stability couple levels. behavior a couple choppiness remains trends, back-to-school of macro through level, we've pent-up we've below evidence have customer high the In-store see including traffic some throughout more And periods seen in like signs of than years. we've last last the But seen predictable

a outlook while so we're encouraged the And by conservative in maintaining some recent trends, we're of general.

just an dynamics. on network update I if to you you And the in could more Can on that of on ask be had one customers recently insurance provide wins industry amount the have Parker? new follow-up Warby getting with

Yes.

out-of-network are customers strong by continued usage front. in-network utilization and progress usage, of insurance our the saw encouraged higher from We In of QX, that on we're making reimbursement. insurance both the we

we've there, new encouraging. large bigger stronger more and be store to to large understand at eligibility to And with scale, the Warby are them ourselves some encouraged We're continue large as over of and doctors, of seeing believe relationships unlock so carriers utilization the also our our partner that's a last functionality like and we Parker us that, the customers better it we over for check, easier introduced continue to footprint, that the and benefits we've their we carriers much year. to introduced, as a use position universal relationships we makes to hire Some to time. that potential for employers then expand we employers as and how by

question Cowen. line Oliver of The from the from TD next Chen today comes

guidance your second, are ahead and Dave then of you this is as zoom what will consumer Neil, in we how number, forecasting the on on mixed store of and regarding opportunity basis XXX-store that play? And what's target, And the of why longer-term is terms And you sort how right what a year-over-year role terms in out And environment? you ahead. new and promotions picture, target? productivity opticians inform about of in are promotions? XXX the see? thinking helping also, What lots that Steve, longer-term

This is Neil.

Progressives consumer business pair Progressives of the given sort promotions. elsewhere, elsewhere.And glasses to of we've offering, of cost that that that's On would whether the or over $XXX to cost $X,XXX $XXX offer promotions at need at general, felt $XX our the run and Progressive standard typically that or our tried whether exceptional would $XXX Precision that's all-in front in to our right, exceptional value, tons haven't value, we provide a always

introducing that us spend and holiday and is that currently and to UPT the buy the continue Add-a-Pair selling unmatched. and So you we'll more that and drives a ratio value, AOV, see do expect with have to that ensure be us, exceptional running promotions promotion. that of to will That's everything price-to-quality and sort been more season. you But Save you continue the encourages while, save. we're an during now more us, folks from We to shouldn't for

similar year. As continue about we of XX continue we a stores track to be we sort this and think on our to rollout, on retail trend next year, to open plan

shops we've over As that worked optical analysis identified done sort with us. and right, XXX ahead the white plenty There's of U.S., there's and we've of third XX,XXX parties, number. of in space

and to hiring been license continue opticians. challenges in talent have profession no states, internally. Opticianry most and a a We of develop we've able to training lot is

or we that to of we the preferred as hiring optometrists every amazing store. experiences not around our other have optometrists, optometrists. competency in and a and Parker some set of culture So expertise while so continue graduate sort a challenges And year, lenses, not often and finding glasses walking making walking that also be around optometrists we're X,XXX still customer only to. do customer but sure with about they companies think great the And skill patient around hiring feels fitting ingrained out employer are and only and Warby every speak

to that we'll retention on an and their than amazing of optometrists So we they also optometrists. recruitment can in the And on the best care for way, that clinical the in brightest to continue so field. focus expertise and environment hire invest to And so, us tasks. leverages we'll continue continue work administrative that technology rather create helps

from today the Altschwager The next Mark line from Baird. comes of question

quarter-to-date guess, of could demand more [lift] you the readings that You marketing you you the hoping off, there. I would mentioned was to signals in linear. Wondering talk campaign I the a the takeaways little of spend. and and seeing bit from that are marketing the not just new first some are re-ramp about choppiness there? kind broader guess expect also some if growth what maybe e-commerce line your more be expect would you

response In Yes. in returns general. more that we've pleased from in we've general, been seen investing and with the the marketing

effort and As marketing our is awareness fallen our there's that designed this where that categories noted and last to into kind of X brand campaign. investment increasing brand of kind separate effort have brand core that awareness our not the that and long-term to of really quarter, that's from extended there into brand necessarily in there's in QX, to campaign, efforts The pleased commitment and drive last quarter, marketing we transactions, we're with awareness.And some then the engagement where the goal we're a the convert current in and period. our reflects response really move in the metrics seeing

on it. in few we seen much returns previously, back and how look that kind platforms so engagement months moved to achieved we've all And haven't wait the TikTok, of need right, but on awareness e-comm up relates go seen there, that trend doing the to some been from we're general, overall to as marketing much brand goals we've so then to far. we've we volatility a But we've at and that like our the to see and YouTube for there confident be engagement it line continuing pleased with quarter-to-quarter. e-com, so to the and expect our do some are And I in

won't, volatility to the but in will some one those to be a or goal started spend there, business so and, That quarters business of reflected growth to in when kind year-over-year more our our we growth, experimentation of new to to is are and may believe be media rates as few may e-com recognize more part looking And we're of deceleration on near-term did sensitive focus is allocate we've there we we certainly so and prior budget returning on sustainable shots that things plan some at quarters, channels, another. over and long-term some than our some to that. work, on more few acceleration to that overall path from that take period marketing the next and of in ensuring

talked We this Steve. is this about little a bit Mark, And before.

during back half and busy e-com as we particular. we season. the a take year There's occurs December, of amount that in impacting of making every fair orders consumer this sure factor capturing other about December, we're The demand talk growth, the in that holiday

of revenue the in of that deliver but a and are there following some and actually January majority recognize And in revenue of those year. actually, recognized December, in we'll vast number the them, we as QX QX on

in in pace of So course and there's the within of the element particular. December also involved of orders e-commerce timing QX that over growth

plans from there's here? And typical we called actually Steve, see And growth dovetails quarter-over-quarter that shouldn't nicely I share typically, you gain can QX. reason views your guess, as initial I do follow-up. any the you if revenue as QX seasonality Any few biggest you next guess XXXX. months look sales wondering into for expect my to on we out, that same at I'm

pattern seen has in year. expect It's assume QX previous similar looking business that we that assume step-up trend from to from the safe follow same many to next should years. a just to to QX what ahead we've many, to exhibited the the for will years, our step-up QX QX line we and That's

of question The Lejuez today from line from Paul Citigroup. the comes next

And of This we've drag was next could lapped to I quarters? couple reduction from for people Paul. is just wondering, on going account? in spend, Cheatham assume active one that then active forward? was customer on ordering household multiple I now you customer we think how accelerate about wondering, marketing change the to is much can the Brandon And a the growth growth of how quantify also we that, should over

active that accelerate. continue yes, expect customer start, we To will growth do to

XX-month mentioned, trailing I this metric. is a As

coming some quarter [can't] to we expect have currently comping return on then less of we're additional marketing the spend continue moderately color marketing, in that and we where move metric were that and a investment to in the multi-person where period able metric we've so is one we quarters.And we've seen spending X coming year-over-year it right marketing the one And reintroduced positively quarters now, that on kind to may provide any growth. of impacting seen some visibility be that a And materially but into against quarters. we as is factor the additional and provide accounts, that

online a quick entirely help direct your I core follow-up. that? can is has that, your outlook if ex-contacts, what understanding almost So if just And And just to penetration returned frame and I'm growth. business? you I that's The for increased wondering, the guess is direct business is can, there? my what

greater purchase to of a We're that importantly, more say purchase using channel, portion broken and continue split a our of Haven't e-commerce blended both glasses, second glasses. the glasses to, versus excited contacts selling online contact we're our e-com account a for channel. the out that new seeing are business. and as also on really to we'll and Suffice customers it progress at or online excited report to pair return we're to about how third making of

your all today's question-and-answer you Thank session, and for this today's concludes concludes call. participation. This

now may your You disconnect lines.