Warby Parker Inc. (NYSE:WRBY) Q4 2022 Earnings Call Transcript

Steve Miller: Sure. There’s certainly an impact to top line growth as it relates to marketing spend. It’s tough to quantify with specific science dollar for dollar what that is. What we do know is this year, we dropped total marketing spend by 15%, but we still grew revenue by 10.6% year-over-year. And our focus is to really make sure that we’re driving incremental profitability while we’re bringing marketing spend back to pre-pandemic levels, closer to the low teens from where it had been at almost 20%. In terms of what we’re seeing reflected in our customer acquisition costs, as Neil talked about previously, we’ve seen a nice deleverage or drop in our customer acquisition costs that’s coincided with our drop in marketing spend and what we’re focused on is making sure that we can continue to grow.

But while we’re growing, growing profitably and a big part of our incremental adjusted EBITDA story really is bringing marketing spend in line with pre-pandemic levels to that low-teens percentage basis.

Brandon Cheatham: Got it. Thank you, and good luck.

Operator: Thank you. I would like to turn it back to Dave for any final remarks.

David Gilboa: Thank you all for listening in this morning and for the thoughtful questions. We continue to be excited about the opportunity in front of us and look forward to sharing progress against our strategic priorities on our next call.

Operator: Thank you all for joining. That does conclude today’s call. You may now disconnect your lines, and have a lovely day.