Warby Parker soars 36% in direct-listing debut, valuing the eyewear retailer at $6 billion

• Warby Parker jumped as much as 36% in its direct listing debut on Wednesday.
• The eyewear retailer's trading debut valued the company at more than $6 billion, well ahead of its last private funding round valuation of $3 billion.
• Warby's direct listing price came in at $54.70, ahead of its reference price of $40 per share.
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Warby Parker soared as much as 36% in its direct listing debut on Wednesday, handing the eyewear retailer a valuation of more than $6 billion.

The firm's direct listing price came in at $54.70 per share on Wednesday, well above its reference price of $40 per share. Warby Parker will have around 111.5 million shares outstanding with 77.7 million available to trade. The firm will not raise any proceeds from the direct listing.

The stock trades on the New York Stock Exchange under the ticker "WRBY."

Warby Parker was founded in 2010 as one of the first direct-to-consumer brands that offers affordable prescription glasses and sunglasses online and at physical store locations. The company also provides eye check-up services at most of its physical locations to help facilitate a one-stop shop for eyecare needs.

Warby Parker recorded net losses of $55.9 million on $393.7 million in revenue in 2020, according to its S-1 filing. The company saw year-over-year revenue growth of 6%. For the six months ended June 30, Warby Parker generated $7.3 million in net losses on $270.5 million in revenue. Warby broke even in 2019.

In 2020, Warby Parker generated 95% of its sales from the sale of glasses, 2% from the sale of contacts, 1% from eye exams, and 2% from the sale of eyewear accessories. The average revenue per customer was $218 in 2020. Warby Parker plans to operate about 160 physical stores by the end of its fiscal year.

Warby Parker has raised more than $500 million from venture capitalists since its founding. In August 2020, the company raised $245 million at a $3 billion valuation from D1 Capital, Baillie Gifford, T. Rowe Price, and Durable Capital Partners.

The company joins a slew of firms that opted for a direct-listing rather than a traditional IPO. Other firms that went public via a direct listing include Roblox, Coinbase, and Spotify.

"We believe a direct listing is a more transparent and inclusive process for lots of fans of the brand who in a traditional IPO wouldn't have the option of getting an allocation. It creates a fair playing field for all," Warby Parker co-founder and CEO Dave Gilboa told Axios.