The market response to Warby Parker's first earnings report since going public on Sept. 29 may knock your eyeglasses straight off your face.
Shares surged more than 10% to $59.33 on Friday following the company's third quarter earnings release. At one point, the stock was up greater than 34%.
To be sure, there was a lot to like in the numbers.
Warby's third quarter sales increased 32% from a year ago to $137.4 million. Active customers rose 23% to 395,000. Adjusted operating profits improved 106% from the prior year to $11.2 million.
For the full year, Warby guided to revenue growth of 37% to 38%. Adjusted operating margins are pegged in a range of 4% to 5%.
Warby's co-founders Neil Blumenthal and Dave Gilboa struck an upbeat tone with analysts on a conference call. The pair said it's not seeing significant pressures from supply chain bottlenecks gripping manufacturers of all kind. They added, meanwhile, customers are spending more per visit.
So far, public company life has been a positive experience for Warby Parker.
The stock skyrocketed out of the gate on its IPO day, rising 34% to $54 by the close of trading. Shares in the direct listing on the New York Stock Exchange had a reference price of $40.
Blumenthal and Gilboa told Yahoo Finance Live on IPO day they are focused on capitalizing the market opportunity of people needing glasses.
"The incidents of refractive error to the percentage of the population that needs glasses is increasing over time. That's due to people spending more time looking at screens, and also more people entering into the category where they need progressive lenses. That's another huge opportunity for us at Warby Parker, where we are offering progressive lenses for $295. At most retailers of comparable quality they might be $1,000 or more. It's a newer part of our business, it's going to create tailwinds for us going forward," Gilboa explained.
Brian Sozzi is an editor-at-large and anchor at Yahoo Finance. Follow Sozzi on Twitter @BrianSozzi and on LinkedIn.
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