89- Warby Parker - Business Design Teardown
d.MBA
Analysis of Company's Profitability and Gross Margins in Q1
Adjusted EBITDA is a widely used metric to make companies look more profitable, but it does not necessarily mean they are actually profitable./nThe company in discussion is not profitable despite using adjusted EBITDA./nReduction in marketing costs, lower stock-based compensation, and adjustments to the cost structure made in the previous year are the main reasons for the company's slight improvement in profitability./nGross margin is a metric that indicates how profitable a product is by subtracting the revenue from product from all costs associated with making and selling the product. The company has a gross margin of 55%, which is considered good.
00:00
Transcript
Play full episode
Remember Everything You Learn from Podcasts
Save insights instantly, chat with episodes, and build lasting knowledge - all powered by AI.
