We feel now is a pretty good time to analyse Warby Parker Inc.'s (NYSE:WRBY) business as it appears the company may be on the cusp of a considerable accomplishment. Warby Parker Inc. provides eyewear products in the United States and Canada. With the latest financial year loss of US$63m and a trailing-twelve-month loss of US$33m, the US$3.1b market-cap company alleviated its loss by moving closer towards its target of breakeven. Many investors are wondering about the rate at which Warby Parker will turn a profit, with the big question being "when will the company breakeven?" We've put together a brief outline of industry analyst expectations for the company, its year of breakeven and its implied growth rate.

Warby Parker is bordering on breakeven, according to the 14 American Specialty Retail analysts. They anticipate the company to incur a final loss in 2024, before generating positive profits of US$20m in 2025. The company is therefore projected to breakeven just over a year from today. In order to meet this breakeven date, we calculated the rate at which the company must grow year-on-year. It turns out an average annual growth rate of 126% is expected, which signals high confidence from analysts. If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.

Underlying developments driving Warby Parker's growth isn't the focus of this broad overview, though, keep in mind that generally a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.

One thing we'd like to point out is that Warby Parker has no debt on its balance sheet, which is rare for a loss-making growth company, which typically has high debt relative to its equity. This means that the company has been operating purely on its equity investment and has no debt burden. This aspect reduces the risk around investing in the loss-making company.

Next Steps:

There are too many aspects of Warby Parker to cover in one brief article, but the key fundamentals for the company can all be found in one place – Warby Parker's company page on Simply Wall St. We've also put together a list of important aspects you should further examine:

1. Valuation: What is Warby Parker worth today? Has the future growth potential already been factored into the price? The intrinsic value infographic in our free research report helps visualize whether Warby Parker is currently mispriced by the market.
2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Warby Parker's board and the CEO's background.
3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.