Cover - shares	9 Months Ended
Cover - shares	Sep. 30, 2021	Nov. 09, 2021
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2021
Document Transition Report	false
Entity File Number	001-40825
Entity Registrant Name	Warby Parker Inc.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	80-0423634
Entity Address, Address Line One	233 Spring Street
Entity Address, Address Line Two	6th Floor East
Entity Address, City or Town	New York
Entity Address, State or Province	NY
Entity Address, Postal Zip Code	10013
City Area Code	646
Local Phone Number	847-7215
Title of 12(b) Security	Class A Common Stock, $0.0001 par value per share
Trading Symbol	WRBY
Security Exchange Name	NYSE
Entity Current Reporting Status	No
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	true
Entity Ex Transition Period	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		113,182,975
Entity Central Index Key	0001504776
Amendment Flag	false
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q3
Current Fiscal Year End Date	--12-31

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Current assets:
Cash and cash equivalents	$ 266,237	$ 314,085
Accounts receivable, net	822	601
Inventory	51,442	38,468
Prepaid expenses and other current assets	34,991	6,779
Total current assets	353,492	359,933
Property and equipment, net	105,332	84,534
Other assets	739	284
Total assets	459,563	444,751
Current liabilities:
Accounts payable	49,621	40,788
Accrued expenses	63,656	34,270
Deferred revenue	16,779	26,550
Other current liabilities	4,299	3,722
Total current liabilities	134,355	105,330
Deferred rent	30,978	27,997
Other liabilities	2,674	3,011
Total liabilities	168,007	136,338
Commitments and contingencies (see Note 9)
Redeemable convertible preferred stock, $.0001 par value, zero and 54,507,243 shares authorized at September 30, 2021 and December 31, 2020, respectively; zero and 54,041,904 shares issued and outstanding as of September 30, 2021 and December 31, 2020, respectively	0	506,510
Stockholders’ equity (deficit):
Common stock, $.0001 par value, 1,050,000,000 and 150,000,000 shares authorized at September 30, 2021 and December 31, 2020, respectively; 111,392,357 and 53,944,305 shares issued and outstanding as of September 30, 2021 and December 31, 2020, respectively	11	5
Additional paid-in capital	738,834	127,179
Accumulated deficit	(447,339)	(325,390)
Accumulated other comprehensive income	50	109
Total stockholders’ equity (deficit)	291,556	(198,097)
Total liabilities, redeemable convertible preferred stock, and stockholders’ equity (deficit)	$ 459,563	$ 444,751

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Sep. 30, 2021	Dec. 31, 2020
Statement of Financial Position [Abstract]
Temporary equity par value (in dollars per share)	$ 0.0001	$ 0.0001
Temporary equity shares authorized	0	54,507,243
Temporary equity shares issued	0	54,041,904
Temporary equity shares outstanding	0	54,041,904
Common stock par value (in dollars per share)	$ 0.0001	$ 0.0001
Common stock shares authorized	1,050,000,000	150,000,000
Common stock shares issued	111,392,357	53,944,305
Common stock shares outstanding	111,392,357	53,944,305

Condensed Consolidated Statements of Operations and Comprehensive Loss - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Income Statement [Abstract]
Net revenue	$ 137,373	$ 104,091	$ 407,906	$ 280,881
Cost of goods sold	57,709	40,111	166,407	114,125
Gross profit	79,664	63,980	241,499	166,756
Selling, general, and administrative expenses	171,643	105,315	339,264	217,271
Loss from operations	(91,979)	(41,335)	(97,765)	(50,515)
Interest and other (loss), net	(146)	(81)	(452)	(626)
Loss before income taxes	(92,125)	(41,416)	(98,217)	(51,141)
Provision for income taxes	(1,052)	196	151	478
Net loss	(91,073)	(41,612)	(98,368)	(51,619)
Deemed dividend upon redemption of redeemable convertible preferred stock	0	0	(13,137)	0
Net loss attributable to common stockholders, basic	(91,073)	(41,612)	(111,505)	(51,619)
Net loss attributable to common stockholders, diluted	$ (91,073)	$ (41,612)	$ (111,505)	$ (51,619)
Net loss per share attributable to common stockholders, basic (in dollars per share)	$ (1.45)	$ (0.78)	$ (1.96)	$ (0.98)
Net loss per share attributable to common stockholders, diluted (in dollars per share)	$ (1.45)	$ (0.78)	$ (1.96)	$ (0.98)
Weighted average shares used in computing net loss per share attributable to common stockholders, basic	62,887,161	53,179,523	56,985,960	52,818,555
Weighted average shares used in computing net loss per share attributable to common stockholders, diluted	62,887,161	53,179,523	56,985,960	52,818,555
Other comprehensive loss
Foreign currency translation adjustment	$ (129)	$ 67	$ (58)	$ (78)
Total comprehensive loss	$ (91,202)	$ (41,545)	$ (98,426)	$ (51,697)

Condensed Consolidated Statements of Changes in Redeemable Convertible Preferred Stock and Stockholders’ Deficit - USD ($) $ in Thousands	Total	Common Stock	Common Stock Class A and Class B Common Stock	Additional Paid-In Capital	Accumulated Other Comprehensive Income (Loss)	Accumulated Deficit
Beginning balance, temporary equity (in shares) at Dec. 31, 2019	42,769,000
Beginning balance, temporary equity at Dec. 31, 2019	$ 262,849
Ending balance, temporary equity (in shares) at Mar. 31, 2020	42,769,000
Ending balance, temporary equity at Mar. 31, 2020	$ 262,849
Beginning balance (in shares) at Dec. 31, 2019		52,627,000
Beginning balance at Dec. 31, 2019	(189,453)	$ 5		$ 79,991	$ 22	$ (269,471)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock option exercises (in shares)		29,000
Stock option exercises	128			128
Stock-based compensation	649			649
Other comprehensive loss	(261)				(261)
Net loss	2,778					2,778
Ending balance (in shares) at Mar. 31, 2020		52,656,000
Ending balance at Mar. 31, 2020	$ (186,159)	$ 5		80,768	(239)	(266,693)
Beginning balance, temporary equity (in shares) at Dec. 31, 2019	42,769,000
Beginning balance, temporary equity at Dec. 31, 2019	$ 262,849
Ending balance, temporary equity (in shares) at Sep. 30, 2020	54,042,000
Ending balance, temporary equity at Sep. 30, 2020	$ 506,535
Beginning balance (in shares) at Dec. 31, 2019		52,627,000
Beginning balance at Dec. 31, 2019	$ (189,453)	$ 5		79,991	22	(269,471)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Tender offer repurchase and share retirement (in shares)	0
Net loss	$ (51,619)
Ending balance (in shares) at Sep. 30, 2020		53,596,000
Ending balance at Sep. 30, 2020	$ (195,492)	$ 5		125,650	(56)	(321,091)
Beginning balance, temporary equity (in shares) at Mar. 31, 2020	42,769,000
Beginning balance, temporary equity at Mar. 31, 2020	$ 262,849
Increase (Decrease) in Temporary Equity [Roll Forward]
Issuance of Preferred Stock, net of issuance costs (in shares)	6,413,000
Issuance of Preferred stock, net of issuance costs	$ 124,717
Ending balance, temporary equity (in shares) at Jun. 30, 2020	49,182,000
Ending balance, temporary equity at Jun. 30, 2020	$ 387,566
Beginning balance (in shares) at Mar. 31, 2020		52,656,000
Beginning balance at Mar. 31, 2020	(186,159)	$ 5		80,768	(239)	(266,693)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock-based compensation	724			724
Other comprehensive loss	116				116
Net loss	(12,786)					(12,786)
Ending balance (in shares) at Jun. 30, 2020		52,656,000
Ending balance at Jun. 30, 2020	$ (198,105)	$ 5		81,492	(123)	(279,479)
Increase (Decrease) in Temporary Equity [Roll Forward]
Issuance of Preferred Stock, net of issuance costs (in shares)	4,860,000
Issuance of Preferred stock, net of issuance costs	$ 118,969
Ending balance, temporary equity (in shares) at Sep. 30, 2020	54,042,000
Ending balance, temporary equity at Sep. 30, 2020	$ 506,535
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock option exercises (in shares)		597,000
Stock option exercises	836			836
Stock-based compensation	42,377			42,377
Proceeds from repayment of related party loans (in shares)		343,000
Proceeds from repayment of related party loans	945			945
Other comprehensive loss	67				67
Net loss	(41,612)					(41,612)
Ending balance (in shares) at Sep. 30, 2020		53,596,000
Ending balance at Sep. 30, 2020	$ (195,492)	$ 5		125,650	(56)	(321,091)
Beginning balance, temporary equity (in shares) at Dec. 31, 2020	54,041,904
Beginning balance, temporary equity at Dec. 31, 2020	$ 506,510
Increase (Decrease) in Temporary Equity [Roll Forward]
Stock repurchases, temporary equity (in shares)	(220,000)
Stock repurchases, temporary equity	$ (790)
Ending balance, temporary equity (in shares) at Mar. 31, 2021	53,822,000
Ending balance, temporary equity at Mar. 31, 2021	$ 505,720
Beginning balance (in shares) at Dec. 31, 2020		53,944,000
Beginning balance at Dec. 31, 2020	(198,097)	$ 5		127,179	109	(325,390)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock option exercises (in shares)		64,000
Stock option exercises	157			157
Stock repurchases (in shares)		(27,000)
Stock repurchases	(5,274)					(5,274)
Stock-based compensation	1,261			1,261
Other comprehensive loss	(224)				(224)
Net loss	3,010					3,010
Ending balance (in shares) at Mar. 31, 2021		53,981,000
Ending balance at Mar. 31, 2021	$ (199,167)	$ 5		128,597	(115)	(327,654)
Beginning balance, temporary equity (in shares) at Dec. 31, 2020	54,041,904
Beginning balance, temporary equity at Dec. 31, 2020	$ 506,510
Ending balance, temporary equity (in shares) at Sep. 30, 2021	0
Ending balance, temporary equity at Sep. 30, 2021	$ 0
Beginning balance (in shares) at Dec. 31, 2020		53,944,000
Beginning balance at Dec. 31, 2020	$ (198,097)	$ 5		127,179	109	(325,390)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock option exercises (in shares)	3,302,973
Net loss	$ (98,368)
Ending balance (in shares) at Sep. 30, 2021			111,392,000
Ending balance at Sep. 30, 2021	$ 291,556		$ 11	738,834	50	(447,339)
Beginning balance, temporary equity (in shares) at Mar. 31, 2021	53,822,000
Beginning balance, temporary equity at Mar. 31, 2021	$ 505,720
Increase (Decrease) in Temporary Equity [Roll Forward]
Stock repurchases, temporary equity (in shares)	(46,000)
Stock repurchases, temporary equity	$ (716)
Tender offer repurchase and share retirement, temporary equity (in shares)	(477,000)
Tender offer repurchase and share retirement, temporary equity	$ (3,561)
Ending balance, temporary equity (in shares) at Jun. 30, 2021	53,299,000
Ending balance, temporary equity at Jun. 30, 2021	$ 501,443
Beginning balance (in shares) at Mar. 31, 2021		53,981,000
Beginning balance at Mar. 31, 2021	(199,167)	$ 5		128,597	(115)	(327,654)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock option exercises (in shares)		402,000
Stock option exercises	$ 1,212			1,212
Restricted stock unit releases (in shares)	73,000
Stock repurchases (in shares)		(37,000)
Stock repurchases	$ (1,305)					(1,305)
Stock-based compensation	10,409			10,409
Proceeds from repayment of related party loans (in shares)		12,000
Proceeds from repayment of related party loans	44			44
Tender offer repurchase and share retirement (in shares)		(362,000)
Tender offer repurchase and share retirement	(17,002)					(17,002)
Other comprehensive loss	294				294
Net loss	(10,305)					(10,305)
Ending balance (in shares) at Jun. 30, 2021		54,069,000
Ending balance at Jun. 30, 2021	$ (215,820)	$ 5		140,262	179	(356,266)
Increase (Decrease) in Temporary Equity [Roll Forward]
Stock option and warrant exercises, temporary equity (in shares)	22,000
Stock option and warrant exercises, temporary equity	$ 75
Conversion of preferred stock, temporary equity (in shares)	(53,321,000)
Conversion of preferred stock, temporary equity	$ (501,518)
Ending balance, temporary equity (in shares) at Sep. 30, 2021	0
Ending balance, temporary equity at Sep. 30, 2021	$ 0
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock option exercises (in shares)		465,000	189,000
Stock option exercises	10,326			10,326
Restricted stock unit releases (in shares)		55,000	937,000
Stock-based compensation	64,332			64,332
Proceeds from repayment of related party loans (in shares)		2,172,000
Proceeds from repayment of related party loans	14,644			14,644
Non-cash charitable contributions (in shares)		179,000
Non-cash charitable contributions	7,757			7,757
Other equity activity	0		$ 5
Conversion of common stock (in shares)		(56,940,000)	56,940,000
Conversion of common stock	0	$ (5)	$ 5
Conversion of preferred stock (in shares)			53,321,000
Conversion of preferred stock	501,519		$ 6	501,513
Other comprehensive loss	(129)				(129)
Net loss	(91,073)					(91,073)
Ending balance (in shares) at Sep. 30, 2021			111,392,000
Ending balance at Sep. 30, 2021	$ 291,556		$ 11	$ 738,834	$ 50	$ (447,339)

Statement of Cash Flows (Statement) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020
Cash flows from operating activities
Net loss	$ (98,368)	$ (51,619)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization	15,322	13,294
Stock-based compensation	76,002	43,749
Non-cash charitable contribution	7,757	0
Change in operating assets and liabilities:
Accounts receivable, net	(221)	671
Inventory	(12,971)	(5,698)
Prepaid expenses and other assets	(775)	(2,117)
Other non-current assets	(548)	(13)
Accounts payable	7,629	1,899
Accrued expenses	11,724	11,174
Deferred revenue	(9,774)	(3,096)
Other current liabilities	578	764
Deferred rent	2,980	1,471
Other liabilities	530	2,907
Net cash (used in) provided by operating activities	(135)	13,386
Cash flows from investing activities
Purchases of property and equipment	(34,018)	(14,748)
Net cash used in investing activities	(34,018)	(14,748)
Cash flows from financing activities
Proceeds from stock option and warrant exercises	10,087	966
Employee tax withholding remitted in connection with exercise or release of equity awards	(29,059)	0
Proceeds from repayment of related party loans	31,513	945
Stock repurchases	(8,085)	0
Payment for Tender Offer	(18,031)	0
Borrowings from Credit Facility	0	30,900
Repayment of Credit Facility	0	(30,900)
Net cash (used in) provided by financing activities	(13,575)	245,597
Effect of exchange rates on cash	(120)	(263)
Net (decrease) increase in cash and cash equivalents	(47,848)	243,972
Beginning of year	314,085	55,424
End of year	266,237	299,396
Supplemental disclosures
Cash paid for income taxes	314	220
Cash paid for interest	94	438
Non-cash investing and financing activities:
Purchases of property and equipment included in accounts payable and accrued expenses	5,246	2,623
Related party loans issued in connection with stock option exercises	13,827	0
Series F Preferred
Cash flows from financing activities
Issuance of Series F redeemable convertible preferred stock, net of issuance costs	0	124,717
Series G Preferred
Cash flows from financing activities
Issuance of Series F redeemable convertible preferred stock, net of issuance costs	$ 0	$ 118,969

Condensed Consolidated Statements of Changes in Redeemable Convertible Preferred Stock and Stockholders’ Deficit (Parenthetical) - USD ($) $ in Thousands	3 Months Ended			9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Jun. 30, 2020	Sep. 30, 2021
Statement of Stockholders' Equity [Abstract]
Issuance costs	$ 23,900	$ 300	$ 300	$ 27,700

Description of Business	9 Months Ended
Description of Business	Sep. 30, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Description of Business	Description of Business Warby Parker Inc., a public benefit corporation founded in 2010 (together with its wholly owned subsidiaries, the “Company”), is a founder-led, mission-driven lifestyle brand that sits at the intersection of technology, design, healthcare, and social enterprise. The Company offers holistic vision care by selling eyewear products and providing optical services directly to consumers through its retail stores and e-commerce platform. For every pair of glasses or sunglasses sold, the Company helps distribute a pair of glasses to someone in need through its Buy a Pair, Give a Pair program. The Company is headquartered in New York, New York. Direct Listing On September 29, 2021, the Company completed a direct listing of its Class A common stock (the “Direct Listing”) on the New York Stock Exchange (“NYSE”). The Company incurred fees related to financial advisory services, audit, and legal expenses in connection with the Direct Listing which are recorded in selling, general, and administrative expenses of $23.9 million and $27.7 million for the three and nine months ended September 30, 2021.

Summary of Significant Accounting Policies

9 Months Ended

Sep. 30, 2021

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

Basis of Presentation

The Company’s unaudited condensed consolidated financial statements have been prepared and are presented in accordance with United States generally accepted accounting principles (“U.S. GAAP”). Certain information and disclosures normally included in consolidated financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to the applicable rules and regulations of the Securities and Exchange Commission. Accordingly, these condensed consolidated financial statements should be read in conjunction with our audited consolidated financial statements for the year ended December 31, 2020 and the related notes. The December 31, 2020 condensed consolidated balance sheet was derived from our audited consolidated financial statements as of that date. Our unaudited interim condensed consolidated financial statements include, in the opinion of management, all adjustments, consisting of normal and recurring items, necessary for the fair presentation of the condensed consolidated financial statements. There have been no significant changes in accounting policies during the nine months ended September 30, 2021 from those disclosed in the annual consolidated financial statements for the year ended December 31, 2020 and the related notes.

Principles of Consolidation

The condensed consolidated financial statements include the financial statements of Warby Parker Inc., and its wholly owned subsidiaries. The Company has consolidated certain entities meeting the definition of a variable interest entity (“VIE”) as the Company concluded that it is the primary beneficiary of the entities. The inclusion of these entities does not have a material impact on its condensed consolidated financial statements. Intercompany balances and transactions have been eliminated in consolidation.

Use of Estimates

The Company prepares its condensed consolidated financial statements in conformity with U.S. GAAP. These principles require management to make certain estimates and assumptions during the preparation of its condensed consolidated financial statements and accompanying notes. Actual results could differ from those estimates.

Management’s estimates are based on historical experience and on various other market-specific and relevant assumptions that management believes to be reasonable under the circumstances. Significant estimates underlying the accompanying condensed consolidated financial statements include, but are not limited to (i) the valuation of inventory, including the determination of the net realizable value, (ii) reserves for sales returns, (iii) the useful lives and recoverability of long-lived assets, (iv) shipment times included in the calculation of deferred revenue, (v) the determination of deferred income taxes, including related valuation allowances, (vi) allowances for doubtful accounts, and (vii) assumptions related to the valuation of common stock and determination of stock-based compensation.

Emerging Growth Company Status

The Company is an emerging growth company, as defined in the Jumpstart Our Business Startups Act of 2012 (the “JOBS Act”). Under the JOBS Act, emerging growth companies can delay adopting new or revised accounting standards issued subsequent to the enactment of the JOBS Act, until such time as those standards apply to private companies.

The Company has elected to use this extended transition period for complying with new or revised accounting standards that have different effective dates for public and private companies. As a result, the Company’s condensed consolidated financial statements may not be comparable to financial statements of issuers who are required to comply with the effective dates for new or revised accounting standards based on public company effective dates.

Segment Information

Operating segments are defined as components of an enterprise for which separate financial information is evaluated regularly by the chief operating decision maker (“CODM”), who makes decisions about allocating resources and assessing performance. The Company defines its CODM as its co-Chief Executive Officers. The Company has identified one operating segment. When evaluating the Company’s performance and allocating resources, the CODM relies on financial information prepared on a consolidated basis.

Concentration of Credit Risk and Major Suppliers

Financial instruments that potentially subject the Company to significant concentrations of credit risk consist principally of cash and cash equivalents. The Company maintains its cash and cash equivalents in various accounts, which, at times, may exceed the federally insured limits. The Company has not experienced any concentration losses related to its cash and cash equivalents to date. The Company seeks to minimize its credit risk by maintaining its cash and cash equivalents with high-quality financial institutions and monitoring the credit standing of such institutions.

The Company’s top five inventory suppliers accounted for approximately 23% and 22% of cost of goods sold for the nine months ended September 30, 2021 and 2020, respectively.

Cash and Cash Equivalents

The Company considers all highly liquid short-term investments with an original maturity of three months or less to be a cash equivalent. Cash and cash equivalents include both deposits with banks and financial institutions and receivables from credit card issuers, which are typically converted into cash within two to four days of capture. As such, these receivables are recorded as a deposit in transit as a component of cash and cash equivalents on the consolidated balance sheets. At September 30, 2021 and December 31, 2020, the balance of receivables from credit card issuers included within cash and cash equivalents was $3.4 million and $7.1 million, respectively.

Inventory

Inventory consists of approximately $12.0 million and $8.9 million of finished goods, including ready-to-wear sun frames, contact lenses, and eyeglass cases, as of September 30, 2021 and December 31, 2020, respectively, and approximately $39.4 million and $29.6 million of component parts, including optical frames and prescription optical lenses, as of September 30, 2021 and December 31, 2020, respectively. Inventory is stated at the lower of cost or net realizable value, with cost determined on a weighted average cost basis.

The Company continuously evaluates the composition of its inventory and makes adjustments when the cost of inventory is not expected to be fully recoverable. The estimated net realizable value of inventory is determined based on an analysis of historical sales trends, the impact of market trends and economic conditions, and a forecast of future demand. Adjustments for damaged inventory are recorded primarily based on actual damaged inventory. Adjustments for inventory shrink, representing the physical loss of inventory, are estimated based on historical experience, and are adjusted based upon physical inventory counts. However, unforeseen adverse future economic and market conditions, such as those resulting from disease pandemics and other catastrophic events, could result in actual results differing materially from estimates.

Revenue Recognition

The Company primarily derives revenue from the sales of eyewear products, optical services and accessories. The Company sells products and services through its stores, website, and mobile apps. Revenue generated from eyewear products includes the sales of prescription and non-prescription optical glasses and sunglasses, contact lenses, eyewear accessories, and expedited shipping charges, which are charged to the customer, associated with these purchases. All revenue is reported net of sales taxes collected from customers on behalf of taxing authorities and variable consideration, including returns and discounts.

Revenue is recognized when performance obligations are satisfied through either the transfer of control of promised goods or the rendering of services to the Company's customers. Control transfers once a customer has the ability to direct the use of, and obtain substantially all of the benefits from the product, generally determined to be when the product is received by the customer or upon rendering of the eye exams in the case of optical services. This includes

the transfer of legal title, physical possession, the risks and rewards of ownership, and customer acceptance. In the normal course of business, payment may be collected from the customer prior to recognizing revenue and such cash receipts are included in deferred revenue until the order is delivered to the customer. Substantially all of the deferred revenue included in the balance sheet at December 31, 2020 was recognized as revenue in the first quarter of 2021 and the Company expects substantially all of the deferred revenue at September 30, 2021 to be recognized as revenue in the fourth quarter of 2021.

The Company’s sales policy allows customers to return merchandise for any reason within 30 days of receipt, generally for an exchange or refund. An allowance is recorded within other current liabilities on the consolidated balance sheets for expected future customer returns which the Company estimates using historical return patterns and its expectation of future returns. Any difference between the actual return and previous estimates is adjusted in the period in which such returns occur. Historical return estimates have not materially differed from actual returns in any of the periods presented. The allowance for returns was $2.0 million and $1.9 million at September 30, 2021 and December 31, 2020, respectively, and is included in other current liabilities on the condensed consolidated balance sheets.

The Company offers non-expiring gift cards to its customers. Proceeds from the sale of gift cards are initially deferred and recognized within deferred revenue on the consolidated balance sheets, and are recognized as revenue when the product is received by the customer after the gift card has been tendered for payment. Based on historical experience, and to the extent there is no requirement to remit unclaimed card balances to government agencies under unclaimed property laws, an estimate of the gift card balance that will never be redeemed is recognized as revenue in proportion to gift cards which have been redeemed. While the Company will continue to honor all gift cards presented for payment, management may determine the likelihood of redemption to be remote for certain card balances due to, among other things, long periods of inactivity.

The following table disaggregates the Company’s revenue by product for the three and nine months ended September 30, 2021 and 2020:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
Eyewear products	$	133,037	$	101,303	$	395,329	$	273,043
Services and other	4,336		2,788		12,577		7,838
Total Revenue	$	137,373	$	104,091	$	407,906	$	280,881

The following table disaggregates the Company’s revenue by channel for the three and nine months ended September 30, 2021 and 2020:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
E-commerce	$	58,199	$	65,556	$	194,859	$	174,369
Retail	79,174		38,535		213,047		106,512
Total Revenue	$	137,373	$	104,091	$	407,906	$	280,881

Recently Issued Accounting Pronouncements

In February 2016, the FASB issued ASC No. 2016-02, Leases (Topic 842) (“ASC 842”). ASC 842 was issued to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. Under the new guidance, lessees are required to recognize a lease liability, which represents the discounted obligation to make future minimum lease payments, and a corresponding right-of-use asset on the balance sheet. The Company elected the extended transition period available to emerging growth companies and as such, the guidance is effective for fiscal periods beginning after December 15, 2021. In July 2018, the FASB issued ASU 2018-10, Leases (Topic 842): Codification Improvements (“ASU 2018-10”) and ASU 2018-11, Leases (Topic 842): Targeted Improvements (“ASU 2018-11”), to provide additional guidance for the adoption of ASC 842. ASU 2018-10 clarifies certain provisions and corrects unintended applications of the guidance. ASU 2018-11 provides an alternative transition method which allows entities the option to present all prior periods under previous lease accounting guidance while recognizing the cumulative effect of applying the new standard as an adjustment to the opening balance of retained earnings in the year of adoption. The Company is currently evaluating the effect of adoption of these standards on the Company’s condensed consolidated financial statements and related

disclosures, but expects to record a material right-of-use asset and liability on the condensed consolidated balance sheet related to its operating leases upon adoption.

In January 2016, the FASB issued ASU 2016-13, Financial Instruments—Credit Losses, and additional changes, modifications, clarifications or interpretations related to this guidance thereafter, which require a reporting entity to estimate credit losses on certain types of financial instruments, and present assets held at amortized cost and available for-sale debt securities at the amount expected to be collected. The guidance is effective for public companies for fiscal years beginning after December 15, 2018. The Company elected the extended transition period available to emerging growth companies and will adopt the guidance as of January 1, 2022. The Company expects the impact of adoption of the standard on the Company’s condensed consolidated financial statements and related disclosures to be immaterial.

Property and Equipment, Net

9 Months Ended

Sep. 30, 2021

Property, Plant and Equipment [Abstract]

Property and Equipment, Net

Property and equipment, net consists of the following:


	September 30, 2021		December 31, 2020
Leasehold improvements	$	104,952	$	88,923
Computers and equipment	19,907		15,694
Furniture and fixtures	16,107		12,156
Capitalized software	10,073		6,054
Construction in process	12,570		7,198
	163,609		130,025
Less: accumulated depreciation and amortization	(58,277)		(45,491)
Property and equipment, net	$	105,332	$	84,534

Depreciation and amortization expense consisted of the following for the three and nine months ended September 30, 2021 and 2020:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
Cost of goods sold	$	4,042	$	3,200	$	11,138	$	9,518
Selling, general, and administrative expenses	1,545		1,195		4,272		3,852
Total depreciation and amortization expense	$	5,587	$	4,395	$	15,410	$	13,370

Prepaid Expenses and Other Current Assets

9 Months Ended

Sep. 30, 2021

Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]

Prepaid Expenses and Other Current Assets

Prepaid expenses and other current assets consists of the following:


	September 30, 2021		December 31, 2020
Tax withholdings	$	22,799	$	—
Receivable from exercised options	4,753		—
Prepaid expenses	4,600		4,368
Other current assets	2,839		2,411
Total prepaid expenses and other current assets	$	34,991	$	6,779

At September 30, 2021, a total of $22.8 million of tax withholdings was remitted to the government in connection with the release of restricted stock units on September 29, 2021, the day of the Company’s Direct Listing. The share sales executed to cover taxes take several days to settle into the Company’s bank account which led to this amount being established as an other asset. Similarly, options exercised on the day of the Direct Listing did not settle by September

30, 2021, resulting in an asset being established. The Company received the full amount of the tax withholdings and option exercises in October 2021.

Accrued Expenses

9 Months Ended

Sep. 30, 2021

Payables and Accruals [Abstract]

Accrued Expenses

Accrued expenses consists of the following:


	September 30, 2021		December 31, 2020
Unvested early exercised stock options	$	16,187	$	8
Payroll related costs	11,675		7,895
Optical laboratory and inventory costs	9,874		1,032
Marketing expenses	6,070		9,585
Charitable contribution	4,738		5,182
Other accrued expenses	15,112		10,568
Total accrued expenses	$	63,656	$	34,270

During the nine months ended September 30, 2021, certain executives repaid related party loans used to exercise stock options. At September 30, 2021, a total of $16.2 million of the amount repaid related to unvested early-exercised stock options is included in accrued expenses.

Income Taxes	9 Months Ended
Income Taxes	Sep. 30, 2021
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes The Company uses the estimated annual effective tax rate approach to determine the provision for income taxes. The estimated annual effective tax rate is based on forecasted annual results and may fluctuate due to differences between the forecasted and actual results, changes in valuation allowances, and any other transactions that result in differing tax treatment. For the three and nine months ended September 30, 2021, the Company recorded a $1.1 million income tax benefit and $0.2 million income tax expense, respectively. For the three and nine months ended September 30, 2020, the Company recorded income tax expense of $0.2 million and $0.5 million, respectively. The Company’s effective tax rates for the three and nine months ended September 30, 2021 were 1.1% and (0.2)%, respectively, and the effective tax rates for the three and nine months ended September 30, 2020 were (0.5)% and (0.9)%, respectively. The Company’s estimated annual effective income tax rate for the three and nine months ended September 30, 2021 and 2020 differed from the statutory rate primarily due to the valuation allowance, non-deductible executive compensation, stock-based compensation, differences in tax rates in state and foreign jurisdictions, and other permanent items.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 21
-URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32857-109319

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SAB Topic 11.C)
-URI http://asc.fasb.org/extlink&oid=122134291&loc=d3e330215-122817

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 17
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32809-109319

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SAB TOPIC 6.I.5.Q1)
-URI http://asc.fasb.org/extlink&oid=122134291&loc=d3e330036-122817

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 14
-URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32705-109319

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 270
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6424409&loc=d3e44925-109338

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-URI http://asc.fasb.org/topic&trid=2144680

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 30
-Section 50
-Paragraph 2
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=6424122&loc=d3e41874-109331

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(h)(2))
-URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690

+ Details

Redeemable Convertible Preferred Stock and Stockholders’ Equity

9 Months Ended

Sep. 30, 2021

Equity [Abstract]

Redeemable Convertible Preferred Stock and Stockholders’ Equity

Common Stock

As of December 31, 2020, the Company’s Tenth Amended and Restated Certificate of Incorporation authorized the issuance of up to 150,000,000 shares of common stock, par value of $0.0001 per share, of which 135,000,000 shares were designated Series A common stock, and 15,000,000 shares were designated Series B common stock. Both Series A and Series B common stock were not redeemable at the option of the holder.

Prior to the Direct Listing, the Company filed its Twelfth Amended and Restated Certificate of Incorporation to (i) authorize 750,000,000 shares of Class A common stock, 150,000,000 shares of Class B common stock, 150,000,000 shares of Class C common stock, and 50,000,000 shares of preferred stock; (ii) effect the reclassification of all shares of Series A and Series B common stock held by the co-founders into Class B common stock, and all other shares of Series A and Series B common stock into Class A common stock; (iii) set the par value of each class of common stock at $0.0001 per share; and (iv) grant one vote per share of Class A common stock, ten votes per share of Class B common stock, and no voting rights for Class C common stock. As of September 30, 2021, the Twelfth Amended and Restated Certificate of Incorporation remained in effect.

As of December 31, 2020, outstanding shares of common stock as well as shares of common stock attributable to stock options and restricted stock units (“RSUs”) were as follows:


	Series A	Series B
Common stock outstanding	52,895,029	1,049,276
Employee stock options – outstanding	5,298,660	2,496,380
Restricted stock units – outstanding	260,878	1,232,244
Employee stock plans – available	734,682	972,450
Shares of Series A common stock issuable upon conversion of all redeemable convertible preferred stock, exercise of all warrants for redeemable convertible preferred stock, outstanding Series B common stock, options, and RSUs	59,813,999	—
Total common stock – outstanding or issuable on exercise of options	119,003,248	5,750,350
Authorized	135,000,000	15,000,000
Common stock available for future issuance	15,996,752	9,249,650

As of September 30, 2021, outstanding shares of common stock as well as shares of common stock attributable to stock options and RSUs were as follows:


	Class A	Class B	Class C
Common stock outstanding	93,353,364	18,038,993	—
Employee stock options – outstanding	1,851,955	2,834,298	—
Restricted stock units – outstanding	1,533,719	1,881,504	—
Employee stock plans – available	11,655,180	222,736	—
Shares of Class A common stock issuable upon conversion of all outstanding Class B common stock, options, and RSUs	22,977,531	—	—
Total common stock – outstanding or issuable on exercise of options	131,371,749	22,977,531	—
Authorized	750,000,000	150,000,000	150,000,000
Common stock available for future issuance	618,628,251	127,022,469	150,000,000

Redeemable Convertible Preferred Stock

All classes of redeemable convertible preferred stock were convertible by the holder into shares of Series A common stock at the then applicable conversion price. In the event of liquidation of the Company (including certain events outside of the Company’s control such as a change in control), the holders of redeemable convertible preferred stock were entitled to a liquidation preference equal to the respective original issue price plus declared and unpaid dividends ahead of the classes of common stock described above. The aggregate preferential amount for all classes of redeemable convertible preferred stock was $510.5 million as of December 31, 2020.

In September 2021, in connection with our Direct Listing, all outstanding shares of redeemable convertible preferred stock were converted to Class A common stock at a one-to-one ratio. As of September 30, 2021, no shares of redeemable convertible preferred stock were outstanding.

Stock Repurchases

In February and June of 2021, the Company repurchased shares of common stock and redeemable convertible preferred stock directly from investors as follows:




	Number of Shares Repurchased	Amount Paid
Series A common stock	63,821	$	1,566
Series AA redeemable convertible preferred stock	160,136	3,928
Series D redeemable convertible preferred stock	60,137	1,475
Series E redeemable convertible preferred stock	45,507	1,116
Total shares repurchased	329,601	$	8,085

The stock was considered constructively retired when repurchased. For the redeemable convertible preferred stock, the $5.0 million excess of repurchase price over carrying value was recorded to accumulated deficit on the condensed consolidated balance sheets. For the common stock, the excess of repurchase price over par value of $1.6 million was recorded to accumulated deficit on the condensed consolidated balance sheet.

In May 2021, the Company and Addition Two, L.P., a related party investor, commenced a cash tender offer (the “Tender Offer”) which was completed in June 2021. The Company authorized the repurchase up to $100 million in shares of common stock, including those issuable upon exercise of stock options, the vesting and settlement of RSUs, and redeemable convertible preferred stock, for a price of $24.5306 per share. The Company waived the performance based vesting condition for current and former employees who elected to tender RSUs for which the service-based vesting condition was satisfied. This was the first widely available tender offer made to employees, former employees, and investors since the Company’s inception. The Company and Addition Two, L.P. each purchased half of the shares tendered.

Shareholders tendered a total of 1,676,534 shares, comprised of 335,847 Series A common shares, 387,163 Series B common shares, 54,484 Series A redeemable convertible preferred stock shares, 293,920 Series AA redeemable convertible preferred stock shares, 3,752 Series B redeemable convertible preferred stock shares, and 601,368 Series D redeemable convertible preferred stock shares, for total consideration of $41.1 million. The Company recorded $9.2 million as stock-based compensation expense related to the Tender Offer.

Addition Two, L.P. purchased 838,267 of the shares tendered for $20.6 million. The Company purchased 838,267 of the shares tendered for $20.6 million and the board of directors approved the immediate retirement of all shares purchased by the Company. The Company received $0.7 million related to the cost to exercise options tendered and $2.5 million related to income taxes withheld from employees and remitted to tax authorities. These items were included in “Tender Offer repurchase and share retirement” on the condensed consolidated statement of changes in redeemable convertible preferred stock and stockholders’ equity (deficit).

During the nine months ended September 30, 2020, the Company did not repurchase common stock or redeemable convertible preferred stock.

Stock Donation

In August 2021, the Company issued 178,572 shares of Series A common stock to the Warby Parker Impact Foundation, a Delaware exempt corporation. The board of directors also authorized up to an additional 1,071,432 shares of Series A common stock, or any shares into which the Series A common stock will be reclassified, for issuance in installments over time and from time to time, in each case, subject to the board of directors’ discretion and approval, to the Warby Parker Impact Foundation or such other nonprofit entity designated by the board of directors. During the three and nine months ended September 30, 2021 the Company recognized $7.8 million of charitable expense, which is recorded in selling, general, and administrative expenses, representing the fair market value of the shares on the date they were issued.

Stock-Based Compensation

9 Months Ended

Sep. 30, 2021

Share-based Payment Arrangement [Abstract]

Stock-Based Compensation

Plans and Awards

The Company’s eligible employees participate in various stock-based compensation plans, which are provided by the Company directly.

At December 31, 2020, under the 2010 Plan, 2011 Plan, 2012 Plan, and 2019 Plan (collectively, the “Plans”), the Company was permitted to grant stock options or RSUs for up to 14,901,474 shares of common stock, made up of 6,439,492 shares of Series A common stock and 8,461,982 shares of Series B common stock.

In June 2021, the Company’s board of directors approved an increase of 6,500,000 shares of Series A common stock authorized for issuance under the 2019 Founder Stock Plan and an increase of 1,200,000 shares of Series B common stock authorized for issuance under the 2011 Plan.

In August 2021, the board of directors approved the 2021 Incentive Award Plan, or the 2021 Plan. The plan became effective on September 28, 2021, the day prior to the Direct Listing of the Company’s Class A common stock, and the Company will no longer grant equity awards under any of the prior equity plans. Upon the 2021 Plan becoming effective, there were 11,076,515 shares of Class A common stock authorized under the 2021 Plan, and the remaining shares available for issuance under the prior equity plans were also made available for issuance under the 2021 Plan. The shares authorized under the 2021 Plan will increase annually, beginning on January 1, 2022 and continuing through 2031, by the lesser of (i) 5% of the then outstanding common stock, or (ii) a smaller amount as agreed by the board of directors.

At September 30, 2021, under the 2021 Plan, the Company may grant stock-based awards for up to 11,877,916 shares of Class A common stock. Awards granted under the 2021 Plan generally vest over four years.

The majority of RSUs issued by the Company prior to the Direct Listing vest upon the satisfaction of both a service and a performance condition. The service-based vesting condition is satisfied so long as the participant remains in service and employed by the Company as of each of the vesting dates. The performance condition was satisfied upon the Company’s Direct Listing on September 29, 2021, and 936,646 RSUs for which the service condition had previously been satisfied vested and were released to holders. RSUs granted subsequent to the Direct Listing vest upon the satisfaction of a service based vesting condition only. The Company will deliver one share of either Class A or Class B common stock, depending on the terms of the grant, for each vested RSU.

In June 2021, the Company granted performance stock units (“PSUs”) to the co-CEOs which vest upon two performance conditions, (i) a qualified public offering, which was satisfied upon the Company’s Direct Listing on September 20, 2021, and (ii) the price of the Company’s Class A common stock reaching stock price hurdles over a period of ten years, as defined by the terms of the award. If the PSUs vest, the Company will deliver one share of Class B common stock on the settlement date. Unvested PSUs expire in ten years from the date of grant. The terms of the PSUs granted are described further below.

In August 2021, the board of directors adopted and the stockholders of the Company approved the 2021 Employee Stock Purchase Plan, or the ESPP. The maximum number of shares of common stock which will be authorized for sale under the ESPP is equal to the sum of (a) 2,215,303 shares of common stock and (b) an annual increase on the first day of each fiscal year beginning in 2022 and ending in 2031, equal to the lesser of (i) 1% of the shares of the Company’s common stock outstanding (on an as converted basis) on the last day of the immediately preceding fiscal year and (ii) such number of shares of common stock as determined by the board of directors; provided, however, no more than 16,614,772 shares of common stock may be issued under the ESPP.

Stock-based Compensation Expense

Stock-based compensation expense consisted of the following for the three and nine months ended September 30, 2021 and 2020:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
Cost of goods sold	$	780	$	—	$	780	$	1
Selling, general, and administrative expenses	63,552		42,377		75,222		43,748
Total stock-based compensation expense	$	64,332	$	42,377	$	76,002	$	43,749

Stock-based compensation expense for the three and nine months ended September 30, 2021 includes $28.8 million related to the 2021 Founders Grant, as described below, and $25.3 million in connection with RSUs with a performance-based vesting condition that was satisfied by the Company’s Direct Listing. The nine months ended September 30, 2021 also includes $9.2 million of stock compensation expense related to the Tender Offer.

The three and nine months ended September 30, 2020 includes $41.7 million of stock-based compensation recorded in connection with shares held by employees that were sold to a third-party investor at the same time as our Series G redeemable convertible preferred stock issuance.

Stock Options

The fair value for options and share awards granted under the Plans are estimated at the date of grant using the Black-Scholes option-pricing model. No options were granted during the nine months ended September 30, 2020. The following assumptions were used for options granted during the three and nine months ended September 30, 2021:


	Three Months Ended September 30, 2021		Nine Months Ended September 30, 2021
Risk-free interest rates	0.1	%	0.1% - 0.6%
Expected dividend yield	—		—
Expected term	0.25 years		0.25 - 6.25 years
Volatility	60	%	60	%

The risk-free interest rates were estimated based on the yield curve in effect at the time of grant for zero-coupon U.S. Treasury notes with terms consistent with the expected term of the option awards. The expected dividend yield is zero as the Company has never declared or paid cash dividends and has no plans to do so in the foreseeable future. The expected term is calculated using the simplified method using the vesting term of four years and the contractual term of ten years, resulting in a holding period of 6.25 years. Stock options expire ten years from the date of the grant. The volatility rate is determined based on an analysis of comparable public company historical volatilities adjusted based on the Company’s stage of development.

Because the Company’s common stock was not yet publicly traded when the options were granted, the Company estimated the fair value of common stock. The board of directors considers numerous objective and subjective factors to determine the fair value of the Company’s common stock at each meeting in which awards are approved. The factors considered include, but are not limited to: (i) the results of contemporaneous independent third-party valuations of the Company’s common stock; (ii) the prices, rights, preferences, and privileges of the Company’s redeemable convertible preferred stock relative to those of its common stock; (iii) the lack of marketability of the Company’s common stock; (iv) actual operating and financial results; (v) current business conditions and projections; (vi) the likelihood of achieving a liquidity event, such as a qualified public offering or sale of the Company, given prevailing market conditions; and (vii) contemporaneous transactions involving the Company’s common shares. The board of directors utilized third-party valuations which were performed in accordance with the guidance outlined in the American Institute of Certified Public Accountants’ Accounting and Valuation Guide, Valuation of Privately Held Company Equity Securities Issued as Compensation.

A summary of stock option activity for the nine months ended September 30, 2021 is as follows:


	Number of Stock Options	Weighted Average Exercise Price		Weighted average contractual term	Aggregate intrinsic value





Balance at December 31, 2020	7,795,040	$	4.88	4.9	$	103,821





Options granted	1,226,277	20.20		—	—
Options exercised	(3,302,973)	7.47		—	101,332
Options forfeited	(5,214)	5.08		—	—
Balance at September 30, 2021	5,713,130	$	6.67	4.7	$	254,712

Exercisable as of September 30, 2021	5,713,130	6.67		4.7	254,712
Vested as of September 30, 2021	4,292,086	3.68		3.4	—
Unvested as of September 30, 2021	1,421,044	15.70		—	—

In August 2021, the board of directors approved a grant of 387,277 fully vested short-term options to purchase 40,766 of Series A common stock and 346,511 of Series B common stock, to certain directors and employees. The options have an exercise price of $24.53 per share and expire 90 days after the grant date. The Company recognized $6.8 million of stock-based compensation on the date of grant which represents the grant date fair value, as measured by the Black-Scholes model. The Company received $9.0 million in cash in connection with the exercise of these options through September 30, 2021.

The total value of unrecognized stock compensation expense related to unvested options granted under the Plans was $10.6 million as of September 30, 2021, and is expected to be recognized over 1.26 years.

Restricted Stock and Performance Stock Units

A summary of RSU activity for the nine months ended September 30, 2021 is as follows:


	Number of Restricted Stock Units	Weighted Average Grant Date Fair Value
Unvested as of December 31, 2020	1,493,122	$	13.14
Granted	3,089,923	33.67
Forfeited	(102,964)	15.05
Released	(1,064,858)	15.51
Vested and not yet released	(60,232)	35.26
Unvested as of September 30, 2021	3,354,991	$	30.84

The total value of unrecognized stock compensation expense related to outstanding RSUs and PSUs granted under the Plans was $81.1 million and $112.9 million as of September 30, 2021, respectively.

On June 15, 2021, the board of directors approved a grant to the Company’s co-CEOs of 4,397,688 PSUs and 1,884,724 RSUs under the 2019 Plan (the “Founders Grant”).

The PSUs will only vest, if at all, in the event of (i) a qualified public offering and (ii) the price of the Company’s Class A common stock reaches stock price hurdles over a period of ten years. The qualified public offering criteria was satisfied with the Direct Listing. The PSUs are subject to the co-CEOs continued employment with the Company through the applicable vesting date. The PSUs are divided into eight substantially equal tranches, each one vesting on the date the 90-day trailing volume-weighted average trading price of our Class A common stock exceeds the stock price hurdle, as set forth in the table below, provided that no PSUs may vest prior to the six month anniversary

of the Direct Listing.


Tranche	Number of PSUs	Stock Price Hurdle
1	549,712	$	47.75
2	549,710	$	55.71
3	549,712	$	63.67
4	549,710	$	71.63
5	549,712	$	79.59
6	549,710	$	87.55
7	549,712	$	95.50
8	549,710	$	103.46

The Company used a Monte Carlo simulation to calculate the grant-date fair value of the PSUs of $128.8 million. Since the PSUs contain a performance and market condition, the stock-based compensation expense will be recognized when it becomes probable that the performance condition will be met using the accelerated attribution method. Stock-based compensation will be recognized over the period of time the market condition for each tranche is expected to be met (i.e., the derived service period). The performance condition was satisfied at September 29, 2021 by the Direct Listing, and the Company recorded $15.9 million of stock-based compensation expense related to the PSUs during both the three and nine months ended September 30, 2021.

The Founders Grant RSUs will vest in equal monthly installments over a period of five years, subject to the co-CEOs continued employment with the Company through the applicable vesting date and conditioned upon the completion of a qualified public offering. The grant-date fair value of the RSUs is $66.9 million. Since the RSUs contain a performance condition, stock-based compensation expense is recognized using the accelerated attribution method when it becomes probable that the performance condition will be met. The performance condition was satisfied at September 29, 2021 by the Direct Listing, and the Company recorded $12.9 million of stock-based compensation expense related to the RSUs during both the three and nine months ended September 30, 2021.

Shares underlying vested PSUs and RSUs will be issued to the CEOs on a specified quarterly date following the second anniversary of the vesting date, except for an amount necessary to cover any taxes due in connection with the vesting, which will be withheld or sold to cover, or issued to offset, such taxes. Any RSUs or PSUs subject to the award that have not vested by the tenth anniversary of the grant date will be forfeited.

Most RSUs granted as of September 30, 2021 vest upon the satisfaction of both a service and a performance condition. The Company had previously concluded that it was not probable that the performance condition would be satisfied as the closing of a qualified public offering or change in control is not deemed probable until consummated. Accordingly, prior to September 29, 2021, the date of the Direct Listing, the Company had not recorded stock-based compensation expense for RSUs with the exception of (i) $1.8 million recognized in June 2021 associated with RSUs that were repurchased in connection with the Tender Offer, and (ii) $2.3 million recognized in August 2021 associated with fully vested RSUs issued to certain directors. Upon the Direct Listing on September 29, 2021, the Company recorded stock-based compensation expense for the service condition satisfied through such date and began recording stock-based compensation expense using the accelerated attribution method as the service conditions are met.

Commitments and Contingencies	9 Months Ended
Commitments and Contingencies	Sep. 30, 2021
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies Credit Facility In August 2013, the Company entered into the Loan and Security Agreement with Comerica Bank, or the Credit Facility, as amended, that consists of a revolving credit line of up to $50.0 million. The revolving credit line has a sub-limit of up to $15.0 million for the issuance of letters of credit. Borrowings under the revolving credit line bear interest on the principal amount outstanding at a variable interest rate based on either LIBOR or the bank’s prime rate (as defined in the credit agreement), with no additional margin. The Company is charged fees on the uncommitted portion of the credit line of approximately 0.2% as long as total borrowings remain less than $15.0 million. In February and March 2020, the Company borrowed a total of $30.9 million under the Credit Facility, which was fully repaid in August 2020. Other than letters of credit used to secure certain leases in lieu of a cash security deposit of $3.6 million and $3.7 million as of September 30, 2021 and December 31, 2020, respectively, there were no other borrowings outstanding under the Credit Facility. Litigation During the normal course of business, the Company may become subject to legal proceedings, claims and litigation. Such matters are subject to many uncertainties and outcomes are not predictable with assurance. Accruals for loss contingencies are recorded when a loss is probable, and the amount of such loss can be reasonably estimated. As of September 30, 2021 and December 31, 2020, the Company is not subject to any currently pending legal matters or claims that could have a material adverse effect on its financial position, results of operations, or cash flows should such litigation be resolved unfavorably.

Net Loss Per Share Attributable to Common Stockholders

9 Months Ended

Sep. 30, 2021

Earnings Per Share [Abstract]

Net Loss Per Share Attributable to Common Stockholders

The computation of net loss per share attributable to common stockholders for the three and nine months ended September 30, 2021 and 2020 is as follows:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
Numerator
Net loss	$	(91,073)	$	(41,612)	$	(98,368)	$	(51,619)
Less: deemed dividend upon redemption of redeemable convertible preferred stock	—		—		(13,137)		—
Net loss attributable to common stockholders - basic and diluted	$	(91,073)	$	(41,612)	$	(111,505)	$	(51,619)
Denominator
Weighted average shares, basic and diluted	62,887,161		53,179,523		56,985,960		52,818,555
Earnings Per Share
Net loss per share attributable to common stockholders, basic and diluted	$	(1.45)	$	(0.78)	$	(1.96)	$	(0.98)

The following potentially dilutive shares were excluded from the computation of diluted net loss per share for the three and nine months ended September 30, 2021 and 2020 because including them would have been antidilutive:


	Three Months Ended September 30,		Nine Months Ended September 30,
	2021	2020	2021	2020
Redeemable convertible preferred stock	—	54,041,904	—	54,041,904
Stock options to purchase common stock	5,713,130	8,142,132	5,713,130	8,142,132
Unvested restricted stock units	3,354,991	1,465,044	3,354,991	1,465,044
Unvested performance stock units	4,397,688	—	4,397,688	—
Warrants to purchase Series B redeemable convertible preferred stock	—	21,745	—	21,745

Related-Party Transactions	9 Months Ended
Related-Party Transactions	Sep. 30, 2021
Related Party Transactions [Abstract]
Related-Party Transactions	Related-Party TransactionsAs a private company, the Company issued secured promissory notes collateralized by the stock purchased by certain Company executives in relation to the exercise of employee stock options. As the promissory notes are secured by the underlying shares they have been treated as non-recourse notes in the condensed consolidated financial statements. The promissory notes are issued with a term of 8.5 years and an interest rate equal to the minimum applicable federal mid-term rate in the month the loan was issued. The secured promissory notes are recorded as a reduction to equity offsetting the amount in additional paid-in-capital related to the exercised options funded by the notes. During the three months ended September 30, 2021, the outstanding loan balance increased by $0.1 million due to interest and $31.5 million of employee loans and accrued interest were repaid. During the nine months ended September 30, 2021, the outstanding loan balance increased by $0.3 million due to interest and $31.5 million of employee loans and accrued interest were repaid. The Company extended loans of $13.8 million to executives during the nine months ended September 30, 2021, and did not extend any loans during the three months ended September 30, 2021. The loans had a balance of $3.2 million at September 30, 2021, and no loans are outstanding with any of our executive officers. In May 2021, the Company and Addition Two, L.P., a related party investor, commenced the Tender Offer which was completed in June 2021. See Note 7, Redeemable Convertible Preferred Stock and Stockholders’ Deficit, for further discussion of the nature of the Tender Offer.

Subsequent Events	9 Months Ended
Subsequent Events	Sep. 30, 2021
Subsequent Events [Abstract]
Subsequent Events	Subsequent Events Lease Obligations Subsequent to September 30, 2021, the Company entered into 4 operating lease agreements for retail space in the U.S., with terms ranging from 5 to 7 years. Total commitments under the new agreements are approximately $2.3 million, payable over the terms of the related agreements. RSU Grants In October 2021, the board of directors approved grants of 235,180 RSUs for Class A common stock to employees under the 2021 Plan. The RSUs vest over a four year service period. The grant date fair value of these awards was $11.7 million.

Summary of Significant Accounting Policies (Policies)	9 Months Ended
Summary of Significant Accounting Policies (Policies)	Sep. 30, 2021
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation The Company’s unaudited condensed consolidated financial statements have been prepared and are presented in accordance with United States generally accepted accounting principles (“U.S. GAAP”). Certain information and disclosures normally included in consolidated financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to the applicable rules and regulations of the Securities and Exchange Commission. Accordingly, these condensed consolidated financial statements should be read in conjunction with our audited consolidated financial statements for the year ended December 31, 2020 and the related notes. The December 31, 2020 condensed consolidated balance sheet was derived from our audited consolidated financial statements as of that date. Our unaudited interim condensed consolidated financial statements include, in the opinion of management, all adjustments, consisting of normal and recurring items, necessary for the fair presentation of the condensed consolidated financial statements. There have been no significant changes in accounting policies during the nine months ended September 30, 2021 from those disclosed in the annual consolidated financial statements for the year ended December 31, 2020 and the related notes.
Principles of Consolidation	Principles of ConsolidationThe condensed consolidated financial statements include the financial statements of Warby Parker Inc., and its wholly owned subsidiaries. The Company has consolidated certain entities meeting the definition of a variable interest entity (“VIE”) as the Company concluded that it is the primary beneficiary of the entities. The inclusion of these entities does not have a material impact on its condensed consolidated financial statements. Intercompany balances and transactions have been eliminated in consolidation.
Use of Estimates	Use of Estimates The Company prepares its condensed consolidated financial statements in conformity with U.S. GAAP. These principles require management to make certain estimates and assumptions during the preparation of its condensed consolidated financial statements and accompanying notes. Actual results could differ from those estimates. Management’s estimates are based on historical experience and on various other market-specific and relevant assumptions that management believes to be reasonable under the circumstances. Significant estimates underlying the accompanying condensed consolidated financial statements include, but are not limited to (i) the valuation of inventory, including the determination of the net realizable value, (ii) reserves for sales returns, (iii) the useful lives and recoverability of long-lived assets, (iv) shipment times included in the calculation of deferred revenue, (v) the determination of deferred income taxes, including related valuation allowances, (vi) allowances for doubtful accounts, and (vii) assumptions related to the valuation of common stock and determination of stock-based compensation.
Segment Information	Segment Information Operating segments are defined as components of an enterprise for which separate financial information is evaluated regularly by the chief operating decision maker (“CODM”), who makes decisions about allocating resources and assessing performance. The Company defines its CODM as its co-Chief Executive Officers. The Company has identified one operating segment. When evaluating the Company’s performance and allocating resources, the CODM relies on financial information prepared on a consolidated basis.
Concentration of Credit Risk and Major Suppliers	Concentration of Credit Risk and Major Suppliers Financial instruments that potentially subject the Company to significant concentrations of credit risk consist principally of cash and cash equivalents. The Company maintains its cash and cash equivalents in various accounts, which, at times, may exceed the federally insured limits. The Company has not experienced any concentration losses related to its cash and cash equivalents to date. The Company seeks to minimize its credit risk by maintaining its cash and cash equivalents with high-quality financial institutions and monitoring the credit standing of such institutions.
Cash and Cash Equivalents	Cash and Cash EquivalentsThe Company considers all highly liquid short-term investments with an original maturity of three months or less to be a cash equivalent. Cash and cash equivalents include both deposits with banks and financial institutions and receivables from credit card issuers, which are typically converted into cash within two to four days of capture. As such, these receivables are recorded as a deposit in transit as a component of cash and cash equivalents on the consolidated balance sheets.
Inventory	Inventory is stated at the lower of cost or net realizable value, with cost determined on a weighted average cost basis. The Company continuously evaluates the composition of its inventory and makes adjustments when the cost of inventory is not expected to be fully recoverable. The estimated net realizable value of inventory is determined based on an analysis of historical sales trends, the impact of market trends and economic conditions, and a forecast of future demand. Adjustments for damaged inventory are recorded primarily based on actual damaged inventory. Adjustments for inventory shrink, representing the physical loss of inventory, are estimated based on historical experience, and are adjusted based upon physical inventory counts. However, unforeseen adverse future economic and market conditions, such as those resulting from disease pandemics and other catastrophic events, could result in actual results differing materially from estimates.
Revenue Recognition	Revenue Recognition The Company primarily derives revenue from the sales of eyewear products, optical services and accessories. The Company sells products and services through its stores, website, and mobile apps. Revenue generated from eyewear products includes the sales of prescription and non-prescription optical glasses and sunglasses, contact lenses, eyewear accessories, and expedited shipping charges, which are charged to the customer, associated with these purchases. All revenue is reported net of sales taxes collected from customers on behalf of taxing authorities and variable consideration, including returns and discounts. Revenue is recognized when performance obligations are satisfied through either the transfer of control of promised goods or the rendering of services to the Company's customers. Control transfers once a customer has the ability to direct the use of, and obtain substantially all of the benefits from the product, generally determined to be when the product is received by the customer or upon rendering of the eye exams in the case of optical services. This includes the transfer of legal title, physical possession, the risks and rewards of ownership, and customer acceptance. In the normal course of business, payment may be collected from the customer prior to recognizing revenue and such cash receipts are included in deferred revenue until the order is delivered to the customer. Substantially all of the deferred revenue included in the balance sheet at December 31, 2020 was recognized as revenue in the first quarter of 2021 and the Company expects substantially all of the deferred revenue at September 30, 2021 to be recognized as revenue in the fourth quarter of 2021. The Company’s sales policy allows customers to return merchandise for any reason within 30 days of receipt, generally for an exchange or refund. An allowance is recorded within other current liabilities on the consolidated balance sheets for expected future customer returns which the Company estimates using historical return patterns and its expectation of future returns. Any difference between the actual return and previous estimates is adjusted in the period in which such returns occur. Historical return estimates have not materially differed from actual returns in any of the periods presented. The allowance for returns was $2.0 million and $1.9 million at September 30, 2021 and December 31, 2020, respectively, and is included in other current liabilities on the condensed consolidated balance sheets. The Company offers non-expiring gift cards to its customers. Proceeds from the sale of gift cards are initially deferred and recognized within deferred revenue on the consolidated balance sheets, and are recognized as revenue when the product is received by the customer after the gift card has been tendered for payment. Based on historical experience, and to the extent there is no requirement to remit unclaimed card balances to government agencies under unclaimed property laws, an estimate of the gift card balance that will never be redeemed is recognized as revenue in proportion to gift cards which have been redeemed. While the Company will continue to honor all gift cards presented for payment, management may determine the likelihood of redemption to be remote for certain card balances due to, among other things, long periods of inactivity.
Recently Issued Accounting Pronouncements	Recently Issued Accounting Pronouncements In February 2016, the FASB issued ASC No. 2016-02, Leases (Topic 842) (“ASC 842”). ASC 842 was issued to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. Under the new guidance, lessees are required to recognize a lease liability, which represents the discounted obligation to make future minimum lease payments, and a corresponding right-of-use asset on the balance sheet. The Company elected the extended transition period available to emerging growth companies and as such, the guidance is effective for fiscal periods beginning after December 15, 2021. In July 2018, the FASB issued ASU 2018-10, Leases (Topic 842): Codification Improvements (“ASU 2018-10”) and ASU 2018-11, Leases (Topic 842): Targeted Improvements (“ASU 2018-11”), to provide additional guidance for the adoption of ASC 842. ASU 2018-10 clarifies certain provisions and corrects unintended applications of the guidance. ASU 2018-11 provides an alternative transition method which allows entities the option to present all prior periods under previous lease accounting guidance while recognizing the cumulative effect of applying the new standard as an adjustment to the opening balance of retained earnings in the year of adoption. The Company is currently evaluating the effect of adoption of these standards on the Company’s condensed consolidated financial statements and related disclosures, but expects to record a material right-of-use asset and liability on the condensed consolidated balance sheet related to its operating leases upon adoption. In January 2016, the FASB issued ASU 2016-13, Financial Instruments—Credit Losses, and additional changes, modifications, clarifications or interpretations related to this guidance thereafter, which require a reporting entity to estimate credit losses on certain types of financial instruments, and present assets held at amortized cost and available for-sale debt securities at the amount expected to be collected. The guidance is effective for public companies for fiscal years beginning after December 15, 2018. The Company elected the extended transition period available to emerging growth companies and will adopt the guidance as of January 1, 2022. The Company expects the impact of adoption of the standard on the Company’s condensed consolidated financial statements and related disclosures to be immaterial.

Summary of Significant Accounting Policies (Tables)

9 Months Ended

Sep. 30, 2021

Accounting Policies [Abstract]

Disaggregation of Revenue

The following table disaggregates the Company’s revenue by product for the three and nine months ended September 30, 2021 and 2020:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
Eyewear products	$	133,037	$	101,303	$	395,329	$	273,043
Services and other	4,336		2,788		12,577		7,838
Total Revenue	$	137,373	$	104,091	$	407,906	$	280,881

The following table disaggregates the Company’s revenue by channel for the three and nine months ended September 30, 2021 and 2020:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
E-commerce	$	58,199	$	65,556	$	194,859	$	174,369
Retail	79,174		38,535		213,047		106,512
Total Revenue	$	137,373	$	104,091	$	407,906	$	280,881

Property and Equipment, Net (Tables)

9 Months Ended

Sep. 30, 2021

Property, Plant and Equipment [Abstract]

Schedule of Property and Equipment

Property and equipment, net consists of the following:


	September 30, 2021		December 31, 2020
Leasehold improvements	$	104,952	$	88,923
Computers and equipment	19,907		15,694
Furniture and fixtures	16,107		12,156
Capitalized software	10,073		6,054
Construction in process	12,570		7,198
	163,609		130,025
Less: accumulated depreciation and amortization	(58,277)		(45,491)
Property and equipment, net	$	105,332	$	84,534

Depreciation and amortization expense consisted of the following for the three and nine months ended September 30, 2021 and 2020:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
Cost of goods sold	$	4,042	$	3,200	$	11,138	$	9,518
Selling, general, and administrative expenses	1,545		1,195		4,272		3,852
Total depreciation and amortization expense	$	5,587	$	4,395	$	15,410	$	13,370

Prepaid Expenses and Other Current Assets (Tables)

9 Months Ended

Sep. 30, 2021

Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]

Schedule of Other Current Assets

Prepaid expenses and other current assets consists of the following:


	September 30, 2021		December 31, 2020
Tax withholdings	$	22,799	$	—
Receivable from exercised options	4,753		—
Prepaid expenses	4,600		4,368
Other current assets	2,839		2,411
Total prepaid expenses and other current assets	$	34,991	$	6,779

Accrued Expenses (Tables)

9 Months Ended

Sep. 30, 2021

Payables and Accruals [Abstract]

Schedule of Accrued Liabilities

Accrued expenses consists of the following:


	September 30, 2021		December 31, 2020
Unvested early exercised stock options	$	16,187	$	8
Payroll related costs	11,675		7,895
Optical laboratory and inventory costs	9,874		1,032
Marketing expenses	6,070		9,585
Charitable contribution	4,738		5,182
Other accrued expenses	15,112		10,568
Total accrued expenses	$	63,656	$	34,270

During the nine months ended September 30, 2021, certain executives repaid related party loans used to exercise stock options. At September 30, 2021, a total of $16.2 million of the amount repaid related to unvested early-exercised stock options is included in accrued expenses.

Redeemable Convertible Preferred Stock and Stockholders’ Equity (Tables)

9 Months Ended

Sep. 30, 2021

Equity [Abstract]

Schedule of Stock by Class

As of December 31, 2020, outstanding shares of common stock as well as shares of common stock attributable to stock options and restricted stock units (“RSUs”) were as follows:


	Series A	Series B
Common stock outstanding	52,895,029	1,049,276
Employee stock options – outstanding	5,298,660	2,496,380
Restricted stock units – outstanding	260,878	1,232,244
Employee stock plans – available	734,682	972,450
Shares of Series A common stock issuable upon conversion of all redeemable convertible preferred stock, exercise of all warrants for redeemable convertible preferred stock, outstanding Series B common stock, options, and RSUs	59,813,999	—
Total common stock – outstanding or issuable on exercise of options	119,003,248	5,750,350
Authorized	135,000,000	15,000,000
Common stock available for future issuance	15,996,752	9,249,650

As of September 30, 2021, outstanding shares of common stock as well as shares of common stock attributable to stock options and RSUs were as follows:


	Class A	Class B	Class C
Common stock outstanding	93,353,364	18,038,993	—
Employee stock options – outstanding	1,851,955	2,834,298	—
Restricted stock units – outstanding	1,533,719	1,881,504	—
Employee stock plans – available	11,655,180	222,736	—
Shares of Class A common stock issuable upon conversion of all outstanding Class B common stock, options, and RSUs	22,977,531	—	—
Total common stock – outstanding or issuable on exercise of options	131,371,749	22,977,531	—
Authorized	750,000,000	150,000,000	150,000,000
Common stock available for future issuance	618,628,251	127,022,469	150,000,000

Class of Treasury Stock

In February and June of 2021, the Company repurchased shares of common stock and redeemable convertible preferred stock directly from investors as follows:




	Number of Shares Repurchased	Amount Paid
Series A common stock	63,821	$	1,566
Series AA redeemable convertible preferred stock	160,136	3,928
Series D redeemable convertible preferred stock	60,137	1,475
Series E redeemable convertible preferred stock	45,507	1,116
Total shares repurchased	329,601	$	8,085

- Definition

Tabular disclosure of an entity's stock, including par or stated value per share, number and dollar amount of share subscriptions, shares authorized, shares issued, shares outstanding, number and dollar amount of shares held in an employee trust, dividend per share, total dividends, share conversion features, par value plus additional paid in capital, the value of treasury stock and other information necessary to a fair presentation, and EPS information. Stock by class includes common, convertible, and preferred stocks which are not redeemable or redeemable solely at the option of the issuer. Includes preferred stock with redemption features that are solely within the control of the issuer and mandatorily redeemable stock if redemption is required to occur only upon liquidation or termination of the reporting entity. If more than one issue is outstanding, state the title of each issue and the corresponding dollar amount; dollar amount of any shares subscribed but unissued and the deduction of subscriptions receivable there from; number of shares authorized, issued, and outstanding.

+ References

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+ Details

Stock-Based Compensation (Tables)

9 Months Ended

Sep. 30, 2021

Share-based Payment Arrangement [Abstract]

Share-based Payment Arrangement, Expensed and Capitalized, Amount

Stock-based compensation expense consisted of the following for the three and nine months ended September 30, 2021 and 2020:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
Cost of goods sold	$	780	$	—	$	780	$	1
Selling, general, and administrative expenses	63,552		42,377		75,222		43,748
Total stock-based compensation expense	$	64,332	$	42,377	$	76,002	$	43,749

Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions

The following assumptions were used for options granted during the three and nine months ended September 30, 2021:


	Three Months Ended September 30, 2021		Nine Months Ended September 30, 2021
Risk-free interest rates	0.1	%	0.1% - 0.6%
Expected dividend yield	—		—
Expected term	0.25 years		0.25 - 6.25 years
Volatility	60	%	60	%

Share-based Payment Arrangement, Option, Activity

A summary of stock option activity for the nine months ended September 30, 2021 is as follows:


	Number of Stock Options	Weighted Average Exercise Price		Weighted average contractual term	Aggregate intrinsic value





Balance at December 31, 2020	7,795,040	$	4.88	4.9	$	103,821





Options granted	1,226,277	20.20		—	—
Options exercised	(3,302,973)	7.47		—	101,332
Options forfeited	(5,214)	5.08		—	—
Balance at September 30, 2021	5,713,130	$	6.67	4.7	$	254,712

Exercisable as of September 30, 2021	5,713,130	6.67		4.7	254,712
Vested as of September 30, 2021	4,292,086	3.68		3.4	—
Unvested as of September 30, 2021	1,421,044	15.70		—	—

Share-based Payment Arrangement, Restricted Stock Unit, Activity

A summary of RSU activity for the nine months ended September 30, 2021 is as follows:


	Number of Restricted Stock Units	Weighted Average Grant Date Fair Value
Unvested as of December 31, 2020	1,493,122	$	13.14
Granted	3,089,923	33.67
Forfeited	(102,964)	15.05
Released	(1,064,858)	15.51
Vested and not yet released	(60,232)	35.26
Unvested as of September 30, 2021	3,354,991	$	30.84

Schedule of Nonvested Performance-based Units Activity


Tranche	Number of PSUs	Stock Price Hurdle
1	549,712	$	47.75
2	549,710	$	55.71
3	549,712	$	63.67
4	549,710	$	71.63
5	549,712	$	79.59
6	549,710	$	87.55
7	549,712	$	95.50
8	549,710	$	103.46

Net Loss Per Share Attributable to Common Stockholders (Tables)

9 Months Ended

Sep. 30, 2021

Earnings Per Share [Abstract]

Schedule of Earnings Per Share, Basic and Diluted

The computation of net loss per share attributable to common stockholders for the three and nine months ended September 30, 2021 and 2020 is as follows:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
Numerator
Net loss	$	(91,073)	$	(41,612)	$	(98,368)	$	(51,619)
Less: deemed dividend upon redemption of redeemable convertible preferred stock	—		—		(13,137)		—
Net loss attributable to common stockholders - basic and diluted	$	(91,073)	$	(41,612)	$	(111,505)	$	(51,619)
Denominator
Weighted average shares, basic and diluted	62,887,161		53,179,523		56,985,960		52,818,555
Earnings Per Share
Net loss per share attributable to common stockholders, basic and diluted	$	(1.45)	$	(0.78)	$	(1.96)	$	(0.98)

Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share

The following potentially dilutive shares were excluded from the computation of diluted net loss per share for the three and nine months ended September 30, 2021 and 2020 because including them would have been antidilutive:


	Three Months Ended September 30,		Nine Months Ended September 30,
	2021	2020	2021	2020
Redeemable convertible preferred stock	—	54,041,904	—	54,041,904
Stock options to purchase common stock	5,713,130	8,142,132	5,713,130	8,142,132
Unvested restricted stock units	3,354,991	1,465,044	3,354,991	1,465,044
Unvested performance stock units	4,397,688	—	4,397,688	—
Warrants to purchase Series B redeemable convertible preferred stock	—	21,745	—	21,745

Description of Business (Details) - USD ($) $ in Thousands	3 Months Ended			9 Months Ended
Description of Business (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Sep. 30, 2020	Jun. 30, 2020	Sep. 30, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Fees related to direct listing	$ 23,900	$ 300	$ 300	$ 27,700

Summary of Significant Accounting Policies - Narrative (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2021 USD ($) segment	Sep. 30, 2020	Dec. 31, 2020 USD ($)
Concentration Risk [Line Items]
Number of operating segments \| segment	1
Cash and cash equivalents	$ 266,237		$ 314,085
Finished goods	12,000		8,900
Component parts	39,400		29,600
Allowance for returns	2,000		1,900
Credit Card Receivable
Concentration Risk [Line Items]
Cash and cash equivalents	$ 3,400		$ 7,100
Cost of Goods and Service Benchmark \| Supplier Concentration Risk \| Top Five Inventory Suppliers
Concentration Risk [Line Items]
Concentration risk percent	23.00%	22.00%

Summary of Significant Accounting Policies - Disaggregation of Revenue (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Disaggregation of Revenue [Line Items]
Net revenue	$ 137,373	$ 104,091	$ 407,906	$ 280,881
E-commerce
Disaggregation of Revenue [Line Items]
Net revenue	58,199	65,556	194,859	174,369
Retail
Disaggregation of Revenue [Line Items]
Net revenue	79,174	38,535	213,047	106,512
Eyewear products
Disaggregation of Revenue [Line Items]
Net revenue	133,037	101,303	395,329	273,043
Services and other
Disaggregation of Revenue [Line Items]
Net revenue	$ 4,336	$ 2,788	$ 12,577	$ 7,838

- Definition

Amount, excluding tax collected from customer, of revenue from satisfaction of performance obligation by transferring promised good or service to customer. Tax collected from customer is tax assessed by governmental authority that is both imposed on and concurrent with specific revenue-producing transaction, including, but not limited to, sales, use, value added and excise.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 30
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8906-108599

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 40
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9031-108599

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 41
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9038-108599

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 4
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130543-203045

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 22
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8736-108599

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 22
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8736-108599

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 42
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9054-108599

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 5
-URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130545-203045

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 924
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SAB Topic 11.L)
-URI http://asc.fasb.org/extlink&oid=6472922&loc=d3e499488-122856

+ Details

Property and Equipment, Net (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020	Dec. 31, 2020
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 163,609		$ 163,609		$ 130,025
Less: accumulated depreciation and amortization	(58,277)		(58,277)		(45,491)
Property and equipment, net	105,332		105,332		84,534
Total depreciation and amortization expense			15,322	$ 13,294
Cost of goods sold
Property, Plant and Equipment [Line Items]
Total depreciation and amortization expense	4,042	$ 3,200	11,138	9,518
Selling, general, and administrative expenses
Property, Plant and Equipment [Line Items]
Total depreciation and amortization expense	1,545	1,195	4,272	3,852
Total depreciation and amortization expense
Property, Plant and Equipment [Line Items]
Total depreciation and amortization expense	5,587	$ 4,395	15,410	$ 13,370
Leasehold improvements
Property, Plant and Equipment [Line Items]
Property and equipment, gross	104,952		104,952		88,923
Computers and equipment
Property, Plant and Equipment [Line Items]
Property and equipment, gross	19,907		19,907		15,694
Furniture and fixtures
Property, Plant and Equipment [Line Items]
Property and equipment, gross	16,107		16,107		12,156
Capitalized software
Property, Plant and Equipment [Line Items]
Property and equipment, gross	10,073		10,073		6,054
Construction in process
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 12,570		$ 12,570		$ 7,198

Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Tax withholdings	$ 22,799	$ 0
Receivable from exercised options	4,753	0
Prepaid expenses	4,600	4,368
Other current assets	2,839	2,411
Prepaid expenses and other current assets	$ 34,991	$ 6,779

Accrued Expenses (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Payables and Accruals [Abstract]
Unvested early exercised stock options	$ 16,187	$ 8
Payroll related costs	11,675	7,895
Optical laboratory and inventory costs	9,874	1,032
Marketing expenses	6,070	9,585
Charitable contribution	4,738	5,182
Other accrued expenses	15,112	10,568
Total accrued expenses	$ 63,656	$ 34,270

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
Income Taxes (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Income Tax Disclosure [Abstract]
Provision (benefit) for income taxes	$ (1,052)	$ 196	$ 151	$ 478
Effective tax rates	(1.10%)	0.50%	0.20%	0.90%

- Definition

Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.

+ References + Details

Redeemable Convertible Preferred Stock and Stockholders’ Equity - Narrative (Details)	1 Months Ended		3 Months Ended				5 Months Ended	9 Months Ended
	Aug. 31, 2021 USD ($) vote shares	May 31, 2021 USD ($) $ / shares shares	Sep. 30, 2021 USD ($) $ / shares shares	Jun. 30, 2021 USD ($)	Mar. 31, 2021 USD ($)	Sep. 30, 2020 USD ($)	Jun. 30, 2021 USD ($) shares	Sep. 30, 2021 USD ($) $ / shares shares	Sep. 30, 2020 USD ($) shares	Dec. 31, 2020 USD ($) $ / shares shares
Temporary Equity [Line Items]
Common stock shares authorized			1,050,000,000					1,050,000,000		150,000,000
Common stock par value (in dollars per share) \| $ / shares			$ 0.0001					$ 0.0001		$ 0.0001
Aggregate preferential amount \| $										$ 510,500,000
Conversion ratio			1					1
Total stock-based compensation expense \| $	$ 6,800,000		$ 64,332,000			$ 42,377,000		$ 76,002,000	$ 43,749,000
Shares repurchased \| $				$ 1,305,000	$ 5,274,000
Proceeds from stock issued \| $		$ 700,000
Proceeds from tax withholding \| $		$ 2,500,000
Stock repurchased (in shares)							329,601		0
Non-cash charitable contribution \| $			$ 7,800,000					7,757,000	$ 0
Addition Two, L.P.
Temporary Equity [Line Items]
Shares tendered		838,267
Shares repurchased \| $		$ 20,600,000
Warby Parker
Temporary Equity [Line Items]
Shares tendered		838,267
Shares repurchased \| $		$ 20,600,000
Tender Offer
Temporary Equity [Line Items]
Share authorized for repurchase \| $		$ 100,000,000
Share authorized for repurchase, price per share (in dollars per share) \| $ / shares		$ 24.5306
Shares tendered		1,676,534
Total consideration \| $		$ 41,100,000
Total stock-based compensation expense \| $		$ 9,200,000						$ 9,200,000
Series A common stock
Temporary Equity [Line Items]
Common stock shares authorized	750,000,000		750,000,000					750,000,000		135,000,000
Common stock par value (in dollars per share) \| $ / shares										$ 0.0001
Number of votes granted \| vote	1
Stock repurchased (in shares)							63,821
Stock issued (in shares)	178,572
Stock authorized (in shares)	1,071,432
Series A common stock \| Tender Offer
Temporary Equity [Line Items]
Shares tendered		335,847
Series B common stock
Temporary Equity [Line Items]
Common stock shares authorized	150,000,000		150,000,000					150,000,000		15,000,000
Common stock par value (in dollars per share) \| $ / shares										$ 0.0001
Number of votes granted \| vote	10
Series B common stock \| Tender Offer
Temporary Equity [Line Items]
Shares tendered		387,163
Series C common stock
Temporary Equity [Line Items]
Common stock shares authorized	150,000,000		150,000,000					150,000,000
Common stock par value (in dollars per share) \| $ / shares										$ 0.0001
Number of votes granted \| vote	0
Redeemable Convertible Preferred Stock
Temporary Equity [Line Items]
Preferred stock shares authorized	50,000,000
Excess of preferred stock repurchase price over carrying value \| $							$ 5,000,000
Common Stock
Temporary Equity [Line Items]
Excess of preferred stock repurchase price over carrying value \| $							$ 1,600,000
Series A Preferred Stock \| Tender Offer
Temporary Equity [Line Items]
Shares tendered		54,484
Series AA Preferred
Temporary Equity [Line Items]
Stock repurchased (in shares)							160,136
Series AA Preferred \| Tender Offer
Temporary Equity [Line Items]
Shares tendered		293,920
Series B Preferred Stock \| Tender Offer
Temporary Equity [Line Items]
Shares tendered		3,752
Series D Preferred
Temporary Equity [Line Items]
Stock repurchased (in shares)							60,137
Series D Preferred \| Tender Offer
Temporary Equity [Line Items]
Shares tendered		601,368

Redeemable Convertible Preferred Stock and Stockholders’ Equity - Common Stock Outstanding (Details) - shares	Sep. 30, 2021	Aug. 31, 2021	Dec. 31, 2020
Class of Stock [Line Items]
Common stock outstanding (in shares)	111,392,357		53,944,305
Employee stock options - outstanding (in shares)	5,713,130		7,795,040
Authorized (in shares)	1,050,000,000		150,000,000
Series A common stock
Class of Stock [Line Items]
Common stock outstanding (in shares)	93,353,364		52,895,029
Employee stock options - outstanding (in shares)	1,851,955		5,298,660
Shares of Series A common stock issuable upon conversion of all redeemable convertible preferred stock, exercise of all warrants for redeemable convertible preferred stock, outstanding Series B common stock, options, and RSUs	22,977,531		59,813,999
Total common stock – outstanding or issuable on exercise of options (in shares)	131,371,749		119,003,248
Authorized (in shares)	750,000,000	750,000,000	135,000,000
Common stock available for future issuance (in shares)	618,628,251		15,996,752
Series A common stock \| Restricted stock units (RSUs)
Class of Stock [Line Items]
Restricted stock units - outstanding (in shares)	1,533,719		260,878
Series A common stock \| Employee Stock
Class of Stock [Line Items]
Employee stock options - available (in shares)	11,655,180		734,682
Series B common stock
Class of Stock [Line Items]
Common stock outstanding (in shares)	18,038,993		1,049,276
Employee stock options - outstanding (in shares)	2,834,298		2,496,380
Shares of Series A common stock issuable upon conversion of all redeemable convertible preferred stock, exercise of all warrants for redeemable convertible preferred stock, outstanding Series B common stock, options, and RSUs	0		0
Total common stock – outstanding or issuable on exercise of options (in shares)	22,977,531		5,750,350
Authorized (in shares)	150,000,000	150,000,000	15,000,000
Common stock available for future issuance (in shares)	127,022,469		9,249,650
Series B common stock \| Restricted stock units (RSUs)
Class of Stock [Line Items]
Restricted stock units - outstanding (in shares)	1,881,504		1,232,244
Series B common stock \| Employee Stock
Class of Stock [Line Items]
Employee stock options - available (in shares)	222,736		972,450
Series C common stock
Class of Stock [Line Items]
Common stock outstanding (in shares)	0
Employee stock options - outstanding (in shares)	0
Shares of Series A common stock issuable upon conversion of all redeemable convertible preferred stock, exercise of all warrants for redeemable convertible preferred stock, outstanding Series B common stock, options, and RSUs	0
Total common stock – outstanding or issuable on exercise of options (in shares)	0
Authorized (in shares)	150,000,000	150,000,000
Common stock available for future issuance (in shares)	150,000,000
Series C common stock \| Restricted stock units (RSUs)
Class of Stock [Line Items]
Restricted stock units - outstanding (in shares)	0
Series C common stock \| Employee Stock
Class of Stock [Line Items]
Employee stock options - available (in shares)	0

Redeemable Convertible Preferred Stock and Stockholders’ Equity - Stock Repurchased (Details) - USD ($) $ in Thousands	3 Months Ended	5 Months Ended	9 Months Ended
	Jun. 30, 2021	Jun. 30, 2021	Sep. 30, 2020
Class of Stock [Line Items]
Number of Shares Repurchased		329,601	0
Amount Paid	$ 17,002	$ 8,085
Series A common stock
Class of Stock [Line Items]
Number of Shares Repurchased		63,821
Amount Paid		$ 1,566
Series AA Preferred
Class of Stock [Line Items]
Number of Shares Repurchased		160,136
Amount Paid		$ 3,928
Series D Preferred
Class of Stock [Line Items]
Number of Shares Repurchased		60,137
Amount Paid		$ 1,475
Series E Preferred
Class of Stock [Line Items]
Number of Shares Repurchased		45,507
Amount Paid		$ 1,116

Stock-Based Compensation - Narrative (Details) $ / shares in Units, $ in Thousands			1 Months Ended			2 Months Ended	3 Months Ended		9 Months Ended
	Sep. 29, 2021 shares	Jun. 15, 2021 tranche shares	Aug. 31, 2021 USD ($) $ / shares shares	Jun. 30, 2021 USD ($) performanceCondition shares	May 31, 2021 USD ($)	Sep. 30, 2021 USD ($) shares	Sep. 30, 2021 USD ($) shares	Sep. 30, 2020 USD ($)	Sep. 30, 2021 USD ($) $ / shares shares	Sep. 30, 2020 USD ($) shares	Dec. 31, 2020 shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Annual increase in shares authorized as a percent of common stock outstanding			1.00%
Total stock-based compensation expense \| $			$ 6,800				$ 64,332	$ 42,377	$ 76,002	$ 43,749
Stock options granted in period (in shares)			387,277						1,226,277
Expected term							3 months
Options granted (in dollars per share) \| $ / shares			$ 24.53						$ 20.20
Cash received from options exercised \| $						$ 9,000
Direct Listing
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation expense \| $							$ 25,300		$ 25,300
Private Placement
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation expense \| $								$ 41,700		$ 41,700
Tender Offer
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation expense \| $					$ 9,200				9,200
Series A common stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock options granted in period (in shares)			40,766
Series B common stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock options granted in period (in shares)			346,511
The Plans
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock options granted in period (in shares)										0
Non-vested option, cost not yet recognized \| $						$ 10,600	10,600		10,600
2021 Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Annual increase in shares authorized, percent			5.00%
2021 Plan \| Series A common stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares authorized			11,076,515
The Founders Grant
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation expense \| $							$ 28,800		$ 28,800
Stock options or restricted stock units (RSUs) \| The Plans
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares authorized											14,901,474
Stock options or restricted stock units (RSUs) \| The Plans \| Series A common stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares authorized											6,439,492
Number of additional shares authorized				6,500,000
Stock options or restricted stock units (RSUs) \| The Plans \| Series B common stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares authorized											8,461,982
Number of additional shares authorized				1,200,000
Stock options or restricted stock units (RSUs) \| 2021 Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares authorized						11,877,916	11,877,916		11,877,916
Award vesting period									4 years
Restricted stock units (RSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Units vested (in shares)									1,064,858
Total stock-based compensation expense \| $							$ 12,900		$ 12,900
Granted (in shares)									3,089,923
Restricted stock units (RSUs) \| The Plans
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Cost not yet recognized, outstanding awards \| $						$ 81,100	81,100		$ 81,100
Restricted stock units (RSUs) \| 2021 Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Units vested (in shares)	936,646
Restricted stock units (RSUs) \| 2021 Plan \| Series A or Series B common stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares receivable per share based payments award (in shares)									1
Restricted stock units (RSUs) \| The Founders Grant
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting period				5 years
Total stock-based compensation expense \| $			$ 2,300	$ 1,800
Granted (in shares)		1,884,724
Grant date fair value \| $									$ 66,900
Performance stock units (PSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of performance conditions \| performanceCondition				2
Terms of award, stock price hurdle period				10 years
Award expiration period				10 years
Total stock-based compensation expense \| $							15,900		15,900
Performance stock units (PSUs) \| Monte Carlo simulation
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Grant date fair value \| $									128,800
Performance stock units (PSUs) \| Series B common stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares receivable per share based payments award (in shares)				1
Performance stock units (PSUs) \| The Plans
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Cost not yet recognized, outstanding awards \| $						$ 112,900	$ 112,900		$ 112,900
Performance stock units (PSUs) \| The Founders Grant
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting period									90 days
Terms of award, stock price hurdle period				10 years
Granted (in shares)		4,397,688
Number of tranches \| tranche		8
Stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of additional shares authorized			2,215,303						16,614,772
Stock options \| The Plans
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting period									4 years
Award expiration period				10 years
Risk free interest rate, coupon rate assumption used									0.00%
Expected dividend yield							0.00%		0.00%
Award contractual period									10 years
Expected term									6 years 3 months
Non-vested award, cost not yet recognized, period for recognition									1 year 3 months 3 days

Stock-Based Compensation - Stock-based Compensation Expense (Details) - USD ($) $ in Thousands	1 Months Ended	3 Months Ended		9 Months Ended
	Aug. 31, 2021	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation expense	$ 6,800	$ 64,332	$ 42,377	$ 76,002	$ 43,749
Cost of goods sold
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation expense		780	0	780	1
Selling, general, and administrative expenses
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation expense		$ 63,552	$ 42,377	$ 75,222	$ 43,748

Stock-Based Compensation - Schedule of Stock Option Assumptions (Details)	3 Months Ended	9 Months Ended
	Sep. 30, 2021	Sep. 30, 2021
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected term	3 months
Stock options \| The Plans
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Risk-free interest rates	0.10%
Expected dividend yield	0.00%	0.00%
Expected term		6 years 3 months
Volatility	60.00%	60.00%
Stock options \| The Plans \| Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Risk-free interest rates		0.10%
Expected term		3 months
Stock options \| The Plans \| Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Risk-free interest rates		0.60%
Expected term		6 years 3 months

Stock-Based Compensation - Schedule of Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands			1 Months Ended	9 Months Ended
	Sep. 30, 2021	Dec. 31, 2020	Aug. 31, 2021	Sep. 30, 2021
Number of Stock Options
Beginning balance (in shares)				7,795,040
Options granted (in shares)			387,277	1,226,277
Options exercised (in shares)				(3,302,973)
Options forfeited (in shares)				(5,214)
Ending balance (in shares)	5,713,130	7,795,040		5,713,130
Exercisable at end of period (in shares)	5,713,130			5,713,130
Vested at end of period (in shares)	4,292,086
Exercisable at end of period (in shares)	1,421,044			1,421,044
Weighted Average Exercise Price
Beginning balance (in dollars per share)				$ 4.88
Options granted (in dollars per share)			$ 24.53	20.20
Options exercised (in dollars per share)				7.47
Options forfeited (in dollars per share)				5.08
Ending balance (in dollars per share)	$ 6.67	$ 4.88		6.67
Exercisable at end of period (in dollars per share)	6.67			6.67
Vested at end of period (in dollars per share)	3.68			3.68
Unvested at end of period (in dollars per share)	$ 15.70			$ 15.70
Weighted average contractual term
Weighted average contractual term	4 years 8 months 12 days	4 years 10 months 24 days
Exercisable at end of period	4 years 8 months 12 days
Vested at end of period	3 years 4 months 24 days
Aggregate intrinsic value
Beginning balance				$ 103,821
Options exercised				101,332
Ending balance	$ 254,712	$ 103,821		254,712
Exercisable at end of period	$ 254,712			$ 254,712

Stock-Based Compensation - Schedule of RSU Activity (Details) - Unvested restricted stock units	9 Months Ended
	Sep. 30, 2021 $ / shares shares
Number of Restricted Stock Units
Unvested beginning balance (in shares) \| shares	1,493,122
Granted (in shares) \| shares	3,089,923
Forfeited (in shares) \| shares	(102,964)
Released (in shares) \| shares	(1,064,858)
Vested and not yet released (in shares) \| shares	(60,232)
Unvested ending balance (in shares) \| shares	3,354,991
Weighted Average Grant Date Fair Value
Unvested beginning balance (in dollars per share) \| $ / shares	$ 13.14
Granted (in dollars per share) \| $ / shares	33.67
Forfeited (in dollars per share) \| $ / shares	15.05
Released (in dollars per share) \| $ / shares	15.51
Veseted and not yet released (in dollars per share) \| $ / shares	35.26
Unvested ending balance (in dollars per share) \| $ / shares	$ 30.84

Stock-Based Compensation - Schedule of PSUs (Details) - Unvested performance stock units	Sep. 30, 2021 $ / shares shares
1
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of PSUs (in shares) \| shares	549,712
Stock price hurdle (in dollars per share) \| $ / shares	$ 47.75
2
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of PSUs (in shares) \| shares	549,710
Stock price hurdle (in dollars per share) \| $ / shares	$ 55.71
3
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of PSUs (in shares) \| shares	549,712
Stock price hurdle (in dollars per share) \| $ / shares	$ 63.67
4
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of PSUs (in shares) \| shares	549,710
Stock price hurdle (in dollars per share) \| $ / shares	$ 71.63
5
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of PSUs (in shares) \| shares	549,712
Stock price hurdle (in dollars per share) \| $ / shares	$ 79.59
6
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of PSUs (in shares) \| shares	549,710
Stock price hurdle (in dollars per share) \| $ / shares	$ 87.55
7
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of PSUs (in shares) \| shares	549,712
Stock price hurdle (in dollars per share) \| $ / shares	$ 95.50
8
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of PSUs (in shares) \| shares	549,710
Stock price hurdle (in dollars per share) \| $ / shares	$ 103.46

Commitments and Contingencies (Details) - USD ($) $ in Thousands	1 Months Ended		2 Months Ended	9 Months Ended
	Aug. 31, 2020	Aug. 31, 2013	Mar. 31, 2020	Sep. 30, 2021	Sep. 30, 2020	Dec. 31, 2020
Debt Instrument [Line Items]
Borrowings from credit facility				$ 0	$ 30,900
Repayment of credit facility				0	$ 30,900
Revolving credit facility \| Comerica Bank \| Line of credit
Debt Instrument [Line Items]
Maximum borrowing capacity		$ 50,000
Revolving credit facility \| Comerica Bank \| Line of credit \| Credit Facility
Debt Instrument [Line Items]
Unused capacity, commitment fee percentage		0.20%
Unused capacity, maximum outstanding amount		$ 15,000
Borrowings from credit facility			$ 30,900
Repayment of credit facility	$ 30,900
Letter of credit \| Comerica Bank \| Line of credit \| Credit Facility
Debt Instrument [Line Items]
Maximum borrowing capacity		$ 15,000
Letters of credit, outstanding amount				$ 3,600		$ 3,700

Net Loss Per Share Attributable to Common Stockholders - Loss per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended						9 Months Ended
	Sep. 30, 2021	Jun. 30, 2021	Mar. 31, 2021	Sep. 30, 2020	Jun. 30, 2020	Mar. 31, 2020	Sep. 30, 2021	Sep. 30, 2020
Numerator
Net loss	$ (91,073)	$ (10,305)	$ 3,010	$ (41,612)	$ (12,786)	$ 2,778	$ (98,368)	$ (51,619)
Less: deemed dividend upon redemption of redeemable convertible preferred stock	0			0			(13,137)	0
Net loss attributable to common stockholders, basic	(91,073)			(41,612)			(111,505)	(51,619)
Net loss attributable to common stockholders, diluted	$ (91,073)			$ (41,612)			$ (111,505)	$ (51,619)
Denominator
Weighted average shares, basic (in shares)	62,887,161			53,179,523			56,985,960	52,818,555
Weighted average shares, diluted (in shares)	62,887,161			53,179,523			56,985,960	52,818,555
Earnings Per Share
Net loss per share attributable to common stockholders, basic (in dollars per share)	$ (1.45)			$ (0.78)			$ (1.96)	$ (0.98)
Net loss per share attributable to common stockholders, diluted (in dollars per share)	$ (1.45)			$ (0.78)			$ (1.96)	$ (0.98)

Net Loss Per Share Attributable to Common Stockholders -Schedule of Antidilutive Shares (Details) - shares	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Redeemable convertible preferred stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive shares excluded from computation of earnings per share (in shares)	0	54,041,904	0	54,041,904
Stock options to purchase common stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive shares excluded from computation of earnings per share (in shares)	5,713,130	8,142,132	5,713,130	8,142,132
Unvested restricted stock units
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive shares excluded from computation of earnings per share (in shares)	3,354,991	1,465,044	3,354,991	1,465,044
Unvested performance stock units
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive shares excluded from computation of earnings per share (in shares)	4,397,688	0	4,397,688	0
Warrants to purchase Series B redeemable convertible preferred stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive shares excluded from computation of earnings per share (in shares)	0	21,745	0	21,745

Related-Party Transactions (Details) - Management $ in Millions	3 Months Ended	9 Months Ended
	Sep. 30, 2021 USD ($)	Sep. 30, 2021 USD ($)
Related Party Transaction [Line Items]
Due from Related Parties	$ 3.2	$ 3.2
Employee Loan Balance Increase
Related Party Transaction [Line Items]
Related Party Transaction, Amounts of Transaction	0.1	0.3
Employee Loans
Related Party Transaction [Line Items]
Related Party Transaction, Amounts of Transaction	$ 31.5	31.5
Employee Loan Extended
Related Party Transaction [Line Items]
Related Party Transaction, Amounts of Transaction		$ 13.8
Secured promissory notes
Related Party Transaction [Line Items]
Notes payable, term		8 years 6 months

- Definition

For an unclassified balance sheet, amounts due from related parties including affiliates, employees, joint ventures, officers and stockholders, immediate families thereof, and pension funds.

+ References

Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(k)(1))
-URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 850
-SubTopic 10
-Section 50
-Paragraph 1
-Subparagraph (d)
-URI http://asc.fasb.org/extlink&oid=6457730&loc=d3e39549-107864

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 10
-Section S99
-Paragraph 1A
-Subparagraph (SX 210.13-01(a)(4)(iv))
-URI http://asc.fasb.org/extlink&oid=124359900&loc=SL124442526-122756

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 10
-Section S99
-Paragraph 1A
-Subparagraph (SX 210.13-01(a)(5))
-URI http://asc.fasb.org/extlink&oid=124359900&loc=SL124442526-122756

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 10
-Section S99
-Paragraph 1B
-Subparagraph (SX 210.13-02(a)(5))
-URI http://asc.fasb.org/extlink&oid=124359900&loc=SL124442552-122756

Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 210
-Section S99
-Paragraph 1
-Subparagraph (SX 210.9-03.10(3))
-URI http://asc.fasb.org/extlink&oid=120398452&loc=d3e534808-122878

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 10
-Section S99
-Paragraph 1B
-Subparagraph (SX 210.13-02(a)(4)(iii)(C))
-URI http://asc.fasb.org/extlink&oid=124359900&loc=SL124442552-122756

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 10
-Section S99
-Paragraph 1B
-Subparagraph (SX 210.13-02(a)(4)(iv))
-URI http://asc.fasb.org/extlink&oid=124359900&loc=SL124442552-122756

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 10
-Section S99
-Paragraph 1A
-Subparagraph (SX 210.13-01(a)(4)(iii)(B))
-URI http://asc.fasb.org/extlink&oid=124359900&loc=SL124442526-122756

Reference 10: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 210
-Section S99
-Paragraph 1
-Subparagraph (SX 210.7-03.3)
-URI http://asc.fasb.org/extlink&oid=120400017&loc=d3e572229-122910

+ Details

Subsequent Events (Details) - Subsequent Event $ in Millions	1 Months Ended
	Oct. 31, 2021 USD ($) shares	Oct. 01, 2021 USD ($) leaseAgreement
Subsequent Event [Line Items]
Operating lease agreements \| leaseAgreement		4
Lease commitments		$ 2.3
Restricted stock units (RSUs) \| Series A common stock
Subsequent Event [Line Items]
Number of shares authorized \| shares	235,180
Award vesting period	4 years
Grant date fair value	$ 11.7
Minimum
Subsequent Event [Line Items]
Operating lease term period		5 years
Maximum
Subsequent Event [Line Items]
Operating lease term period		7 years