Warby Parker Inc. (NYSE: WRBY), the New York-based direct-to-consumer lifestyle brand renowned for its affordable designer eyewear, has announced a promising start to 2024 with its financial results for the first quarter ending March 31, reflecting a robust uptick in growth and profitability. The company reported a significant 16.3% increase in net revenue, amounting to $200 million, compared to the same period last year, marking its highest revenue quarter growth since 2021.

The company’s co-founders and co-CEOs, Neil Blumenthal and Dave Gilboa, highlighted the strategic steps taken to bolster growth including efficient marketing strategies and a focus on the high-margin products such as single-vision glasses. This approach has not only driven revenue but also enhanced average revenue per customer, which rose by 9.6% year over year to $296.

Operational efficiency was also evident in the company’s adjusted EBITDA, which increased from $17.7 million in Q1 2023 to $22.4 million this quarter. The adjusted EBITDA margin rose as well, from 10.3% last year to 11.2%. This was partly fueled by a gross margin increase of 1.6 points to 56.7%, driven by higher-margin glasses sales and efficiencies within Warby Parker’s owned optical laboratories, despite some cost increases due to expanded in-store eye exam services and growth in the lower-margin contact lenses segment.

The first quarter of 2024 also saw Warby Parker continuing its physical expansion with the opening of eight new stores, taking the total count to 245 outlets. This expansion is part of a more extensive store rollout plan with the company aiming to open a total of 40 new stores throughout the year.

Financially, Warby Parker remains firmly positioned with $220.4 million in cash and cash equivalents and a notable improvement in free cash flow, which stood at $5.5 million, compared to a negative free cash flow in the prior-year period.

Looking ahead, Warby Parker has raised its full-year guidance for 2024, projecting net revenues in the range of $753 to $761 million, which would represent year-over-year growth of approximately 12.5% to 13.5%. The company anticipates an adjusted EBITDA of $70 million at the midpoint of the revenue range, reflecting an adjusted EBITDA margin of approximately 9.2%.

This optimistic outlook is predicated on continued revenue growth, further retail expansion, and sustained improvements in operational efficiency. As Warby Parker navigates through 2024, it balances growth aspirations with strategic operational scaling, positioning itself not only as a market leader in affordable, stylish eyewear but also as a robust financial performer in the retail sector.