Wayfair Third-Quarter Results Released, Working Toward Meaningful Efficiency

November 3, 2022  by HFBusiness Staff in Business Strategy, Industry   

“We’re continuing the work we set out last quarter to control the controllables and orienting Wayfair in this environment around three key principles: driving cost efficiency, nailing the basics, and earning customer and supplier loyalty every day,” said Niraj Shah, CEO co-founder and co-chairman of Wayfair.

Some of the highlights of the results included:

- Total net revenue of $2.8 billion decreased $281 million, down 9.0% year over year

- U.S. net revenue of $2.4 billion decreased $155 million, down 6.0% year over year

- International net revenue of $0.4 billion decreased $126 million, down 24.0% year over year. International Net Revenue Constant Currency Growth was (22.6)%

- Gross profit was $824 million or 29.0% of total net revenue

- Net loss was $283 million and Non-GAAP Adjusted EBITDA was $(124) million

- Diluted loss per share was $2.66

- Non-GAAP Adjusted Diluted Loss per Share was $2.11

- Net cash flows used in operating activities was $431 million and Non-GAAP Free Cash Flow was $(538) million

- Cash, cash equivalents and short-term investments totaled $1.3 billion

“We are all focused on taking the steps needed to reach adjusted EBITDA profitability and cash flow neutrality in short order,” said Niraj Shah, CEO, co-founder and co-chairman, Wayfair. “We have direct visibility to over half a billion dollars of savings, with work well underway to deliver this target in 2023.”

“However, we are not stopping there and have identified meaningful incremental efficiency opportunities, which we are also actioning as we speak. Our execution against these initiatives is thoughtful and deliberate to ensure that we make progress toward our profitability targets without compromising the long-term growth potential in front of us.”