Warby Parker Direct Listing 2021: Shares Open at $54, Valued at $6 Billion

On September 29, 2021, Warby Parker made its debut on the New York Stock Exchange (NYSE) under the ticker symbol WRBY, opening at $54.05 per share—well above the $40 reference price.

Warby Parker Inc. is a consumer-focused eyewear brand that designs, manufactures, and sells premium prescription eyeglasses, sunglasses, contact lenses, and accessories such as cases and lens cleaning kits. The company also provides eye exams, vision tests, and a convenient home try-on program. Additionally, Warby Parker operates a philanthropic initiative donating a pair of glasses to someone in need for every pair sold.

Highlights to Know

• Warby Parker offers a wide range of eyewear products directly to consumers.
• The company went public through a direct listing on the NYSE on September 29, 2021.
• Within its first week, Warby Parker's market capitalization reached approximately $6 billion.
• In its latest quarter, the company posted $131.6 million in net revenue with a net loss of $10.3 million.

Details of the WRBY Direct Listing

Warby Parker chose a direct listing as its route to public markets, which differs from a traditional IPO by not issuing new shares or involving underwriters. The reference price of $40 served as a market guide rather than a set purchase price. At the end of its first month publicly traded, shares stabilized near $50, valuing the company at $5.6 billion based on its 111.5 million shares split between Class A and Class B common stock.

The company's co-founders and co-CEOs, Neil Blumenthal and Dave Gilboa, retain control through Class B shares, holding nearly 48% of voting power, ensuring significant influence over corporate decisions.

Warby Parker's roots trace back to 2010 in New York City, founded to disrupt the eyewear industry by removing middlemen and offering high-quality glasses at accessible prices. Over more than a decade, it has grown into a recognized brand with 145 stores across the U.S. and Canada, complemented by a strong online presence.

Financial Overview

Despite posting net losses—$10.3 million in Q2 2021 and $55.9 million in 2020—Warby Parker has seen impressive revenue growth, with $131.6 million in net revenue in Q2 2021, a 96% increase year-over-year. The company’s assets minus liabilities totaled $285.6 million at the end of Q2, with cash reserves of $260.7 million.

Eyeglasses and sunglasses constitute the majority of revenue, accounting for 95% in 2020. The COVID-19 pandemic temporarily shifted sales from retail stores to online channels, with e-commerce revenue rising to 60% in 2020 before evening out to 50% by mid-2021.

Active customers—defined as unique buyers in the past 12 months—reached nearly 2.1 million by June 2021, marking a 20% increase year-over-year and nearly doubling since 2017.

Valuation and Funding History

Warby Parker has raised $535.5 million over multiple funding rounds, including a $120 million Series G round in August 2020, which valued the company at $3 billion. Earlier rounds include Series E in 2018 led by T. Rowe Price, valuing the firm around $1.7 billion, and Series D in 2015. As of October 1, 2021, the company’s market capitalization reached $6 billion following its direct listing.

Competitive Landscape

Warby Parker competes with major players such as EssilorLuxottica, a global optics giant holding 42% of the corrective lens market, and VSP, a private eye care provider. It also faces competition from independent optometrists and optical retailers.

Conclusion

Warby Parker’s direct listing in 2021 marked a significant milestone, with shares opening well above expectations and establishing a $6 billion valuation. Its innovative direct-to-consumer model and strong brand presence continue to position it as a key player in the eyewear industry.

Explore useful articles in Company News as of 13-10-2021. The article titled " Warby Parker Direct Listing 2021: Shares Open at $54, Valued at $6 Billion " offers in-depth analysis and practical advice in the Company News field. Each article is carefully crafted by experts to provide maximum value to readers.

The " Warby Parker Direct Listing 2021: Shares Open at $54, Valued at $6 Billion " article expands your knowledge in Company News, keeps you informed about the latest developments, and helps you make well-informed decisions. Each article is based on unique content, ensuring originality and quality.