Warby Parker Inc. reported significant financial developments in its 10-Q filing for the quarter ending September 30, 2024. The company achieved net revenue of $192.4 million for Q3 2024, marking a 13.3% increase from $169.8 million in Q3 2023. For the nine months ended September 30, 2024, net revenue reached $580.7 million, up 14.3% from $507.9 million in the same period last year. This growth was driven by a 5.6% increase in active customers and a rise in average revenue per customer, which increased from $284 to $305.

Gross profit for Q3 2024 was $104.9 million, a 13.1% increase compared to $92.7 million in Q3 2023. The gross margin remained stable at 54.5%, slightly down from 54.6% in the prior year. For the nine-month period, gross profit rose to $323.7 million, up 16.4% from $278.2 million, with gross margin improving to 55.7% from 54.8%. The increase in gross profit was attributed to higher sales, particularly in eyewear products, and improved efficiencies in operations.

The company reported a loss from operations of $6.6 million for Q3 2024, a significant reduction from a loss of $19.8 million in Q3 2023. For the nine months, the loss from operations decreased to $20.7 million from $50.4 million in the previous year. The net loss for Q3 2024 was $4.1 million, down from $17.4 million in Q3 2023, while the nine-month net loss improved to $13.5 million from $44.2 million.

Warby Parker's cash and cash equivalents increased to $251.0 million as of September 30, 2024, compared to $216.9 million at the end of 2023. The company generated $78.8 million in net cash from operating activities for the nine months ended September 30, 2024, up from $47.3 million in the same period of 2023.

Strategically, Warby Parker has expanded its retail presence, increasing the number of stores offering eye exams from 183 to 228 over the past year. The company also replaced its previous credit facility with a new $120.0 million revolving credit facility in February 2024, aimed at supporting working capital and general corporate purposes.

Despite these positive developments, Warby Parker continues to face challenges, including an accumulated deficit that increased to $680.3 million as of September 30, 2024. The company is also addressing material weaknesses in its internal controls, which have been identified in its financial reporting processes. Remediation efforts are ongoing, requiring significant time and resources.