Warby Parker’s IPO is approaching. The company recently announced its intention to go public via direct listing.
Investors should start preparing for WRBY stocks. Here are the latest updates …
Warby Parker’s IPO: About the Company
Warby Parker is a direct-to-consumer eyewear retailer. It offers high-quality, affordable glasses, sunglasses and contact lenses to its customers. Four students at The Wharton School at the University of Pennsylvania founded the company in 2010.
It all started with a simple problem: glasses are too expensive. One of the founders spent the first semester of graduate school with blurry eyes after losing his glasses on a backpacking trip. He couldn’t afford to replace them and discovered that others shared similar experiences. Was it difficult to find good glasses that don’t empty their pockets?
The founders set out to create an alternative. From there, Warby Parker was born. On his website, the company declares …
By bypassing traditional channels, designing eyewear in-house, and interacting directly with customers, we are able to provide better, better-looking eyeglasses at a fraction of the list price. We believe buying glasses should be easy and fun. It should leave you happy and beautiful, with some money in your pocket.
Today, Warby Parker offers a full line of eye care products and services. These include quality contact lenses and glasses starting at $ 95. The company offers free home trials. The service allows customers to choose five eyeglass / sunglasses frames free of charge to be examined at home.
Customers can also request eye examination services in stores. As of August 18, there were 154 Warby Parker locations. The company sells its products primarily in the United States and also serves Canada.
Program Buy a pair, gift a pair
Warby Parker’s mission goes beyond its paying customers. The company works with non-profit partners to provide glasses to people in need in more than 50 countries. In filing the prospectus, Warby Parker stated …
We also believe that everyone has the right to see. 2.5 billion people worldwide need glasses but do not have access to them; of these, 624 million cannot learn or work effectively due to the severity of their visual impairment. To help address this issue, we are working with a handful of partners around the world to ensure that for every pair of glasses sold, a pair is distributed to someone in need. To date, over eight million pairs of glasses have been distributed through our Buy a Pair, Give a Pair program.
In an interview in 2018, a co-founder said Inc that the company “was only scratching the surface, with less than a 1% market share in the United States.” There is still huge potential in our core market, and we believe there is potential globally as well.
Eyewear e-commerce is still in its infancy. In Warby Parker’s IPO filing, the company noted that eyewear e-commerce accounted for 5% of sales in 2019 and had grown to 8% in 2020. But the online eyewear market is lagging behind. Most people who use glasses or contact lenses buy them from their prescriber.
Warby Parker represented only 2% of American adults who used some form of vision correction in 2020. The company’s market share in terms of net revenue is only 1%.
This presents significant opportunities for Warby Parker to grow in the future. Let’s look at the company’s finances for Warby Parker’s IPO…
Warby Parker’s IPO: finances
Detailed financial information can be found in Warby Parker’s IPO prospectus. This can give you a better understanding of the finances of the business. If you’re looking for WRBY stocks, let’s take a look at the details.
Warby Parker highlights some key information for investors. I have extracted some highlights from the company’s income statement and balance sheet below …
Net revenue: The company recorded an increase in its turnover. Warby Parker reported 2019 revenue of $ 370 million. In 2020, Warby Parker reported an increase to $ 394 million, a 6.5% year-over-year growth.
Gross profit: The company’s gross profit increased slightly. Warby Parker reported gross profit of $ 223 million for fiscal 2019. In 2020, the company reported gross profit of $ 232 million.
Species: Warby Parker recorded $ 55.4 million in cash as of December 2019. The company’s cash flow has grown to over $ 314 million in December 2020. But as of June 31, 2021, the company’s cash has fallen to $ 260.7 million in cash. In the S-1 file, the company declares …
We anticipate that operating losses may continue for the foreseeable future as we continue to invest in the expansion of our business and our sales and marketing activities. We believe that our existing cash and cash equivalents, funds available under our existing credit facility and cash flow from operating activities will be sufficient to fund our operations for at least the next 12 months.
Total assets and liabilities: As of June 30, 2021, the company reported total assets of $ 411.6 million. And just over $ 126 million in total liabilities.
Last year, the company raised $ 245 million from private investors. The G-Series funding gave Warby Parker a valuation of $ 3 billion at the time.
For a better overview of the company’s finances, you can check out Warby Parker’s IPO prospectus. And for those interested in the repository, let’s take a look at the details.
Warby Parker plans to go public via direct registration
Warby Parker announced on August 24 its intention to go public via a direct listing instead of a traditional IPO. There has been no official announcement on the release date. He plans to register on the New York Stock Exchange (NYSE) under the symbol WRBY.
Due to the nature of the direct listing, the offer will not raise new funds for the company or issue new shares. But investors will be able to sell their existing shares on the open market.
There are no underwriters involved. Instead of, Goldman Sachs, Morgan stanley and Allen & Company will serve as financial advisers. There is no official date for Warby Parker’s IPO, but you can come back here to find the latest updates.
As always, be sure to do your research before investing. IPOs can be volatile for the first few months. And stock prices can change quickly. But if you are interested in IPO investing, check out our recent top IPOs and our IPO calendar. We update it daily to give you the latest news on upcoming and filed IPOs.
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About Aimée Bohn
Aimee Bohn is a graduate of the College of Business and Economics at Towson University. Her experience in marketing research helps her uncover interesting trends. Researching IPOs and other trends has been his main focus over the past year. When Aimee isn’t writing for Investment U, you can usually find her doing graphics or traveling with friends.