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NEW YORK - Warby Parker Inc. (NYSE:WRBY), a lifestyle brand in the vision care market generating nearly $800 million in annual revenue with impressive 14% year-over-year growth, has announced a partnership with tech giant Google to develop artificial intelligence (AI)-powered eyewear. According to InvestingPro data, the company maintains a strong financial position with more cash than debt on its balance sheet. The collaboration aims to merge Warby Parker’s design prowess with Google’s technological ecosystem, marking a significant step for both companies in the wearable technology space.
The partnership’s initial product line, which is expected to launch post-2025, will feature smart glasses that integrate multimodal AI technology with both prescription and non-prescription lenses. The collaboration represents Google’s first foray into the eyewear industry through its Android XR platform.
Warby Parker’s co-founder and co-CEO, Dave Gilboa, expressed enthusiasm about the partnership, highlighting the potential of AI to augment real-time context and intelligence for users. Co-founder and co-CEO Neil Blumenthal emphasized the shared commitment to innovation and design between the two companies.
Google has pledged up to $150 million to the joint venture, with half earmarked for product development and commercialization and the other half as an equity investment in Warby Parker, contingent on achieving certain milestones. The investment comes as Warby Parker, currently valued at $2.1 billion, trades at a premium valuation with an EV/EBITDA multiple of 80x. InvestingPro analysis suggests the stock is currently trading near its Fair Value, with 12 additional exclusive insights available to subscribers.
The press release also contains forward-looking statements regarding the companies’ expectations for the partnership’s future products and success. However, these statements are subject to the usual risks and uncertainties associated with new ventures and technological innovation.
This partnership leverages Warby Parker’s history of integrating technology into customer experiences and product design, positioning the brand to expand its offerings in the burgeoning smart eyewear market. The collaboration with Google underscores Warby Parker’s strategic focus on innovation and growth within the optical industry. With analysts projecting profitability this year and a robust gross margin of 55%, detailed analysis of Warby Parker’s growth potential is available in the comprehensive Pro Research Report, part of the InvestingPro subscription covering 1,400+ US equities.
The information in this article is based on a press release statement from Warby Parker Inc.
In other recent news, Warby Parker Inc. reported its first-quarter 2025 financial results, revealing an 11.9% year-over-year revenue increase to $223.8 million. Despite this growth, the company’s earnings per share (EPS) fell short of expectations, coming in at $0.03 compared to the forecasted $0.11. UBS analyst Mark Carden adjusted Warby Parker’s stock target to $20, maintaining a Neutral rating, citing the impact of tariff policies on profitability and lowering EPS forecasts for the upcoming fiscal years. Telsey Advisory Group also revised its price target to $22 while retaining an Outperform rating, recognizing Warby Parker’s market share growth despite revenues and gross margins slightly missing expectations.
Evercore ISI followed suit, reducing the price target to $22 and maintaining an In Line rating, acknowledging the company’s mixed first-quarter results and conservative fiscal year outlook. Warby Parker’s first-quarter revenue of $223.8 million, with a gross profit of $126.0 million, fell slightly below market expectations, but the EBITDA margin exceeded predictions. The company is actively working to mitigate tariff impacts, anticipating a 200-300 basis point gross margin impact for fiscal year 2025. Warby Parker continues to focus on expanding its customer base and diversifying its supply chain, with plans to open 45 new stores this year, including shop-in-shops within Target locations.
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