Wayfair Inc. Reports Fourth Quarter and Year End Financial Results

February 23, 2023  by HFBusiness Staff in Business Strategy, Industry   

Wayfair had a total net revenue of $3.1 billion that decreased $151 million, which was down 4.6% year over year. The U.S. net revenue of $2.7 billion decreased $49 million, down 1.8% year over year.

Wayfair’s International net revenue of $415 million decreased $102 million, down 19.7% year over year. Gross profit was $893 million or 28.8% of total net revenue. Net loss was $351 million and Non-GAAP Adjusted EBITDA was ($71) million.

Diluted loss per share was $3.26 and Non-GAAP adjusted diluted loss per share was $1.71. Net cash provided by operating activities was $98 million and Non-GAAP free cash flow was ($19) million. Cash, cash equivalents and short-term investments totaled $1.3 billion.

"We are excited to see customers respond positively to improvements in our core recipe - with compelling pricing, faster delivery times and increasing availability bearing fruit in the form of market share gains," said Niraj Shah, CEO, co-founder and co-chairman, Wayfair.

Highlights for the full year of 2022 included the total net revenue of $12.2 billion decreased $1.5 billion, down 10.9% year over year. The U.S. net revenue of $10.5 billion decreased $785 million, down 7.0% year over year and the international net revenue of $1.8 billion decreased $705 million, down 28.7% year over year.

Gross profit was $3.4 billion or 28.0% of total net revenue, and net loss was $1.3 billion and Non-GAAP adjusted EBITDA was ($416) million. The diluted loss per share was $12.54 and Non-GAAP adjusted diluted loss per share was $7.71. Net cash used in operating activities was $674 million and Non-GAAP free cash flow was ($1.1) billion.

Shah continued, "We enter 2023 as a lean, focused team driven by the same key priorities that defined much of 2022 - driving cost efficiency, nailing the basics, and earning customer and supplier loyalty every day.”

Active customers totaled 22.1 million as of Dec. 31, a decrease of 19.0% year over year. LTM net revenue per active customer was $553 as of Dec. 31, an increase of 10.4% year over year. Orders per customer, measured as LTM orders divided by active customers, was 1.81 for the fourth quarter of 2022, compared to 1.89 for the fourth quarter of 2021.

Orders delivered in the fourth quarter of 2022 were 11.0 million, a decrease of 9.1% year over year. Repeat customers placed 77.4% of total orders delivered in the fourth quarter of 2022, compared to 76.3% in the fourth quarter of 2021. Repeat customers placed 8.5 million orders in the fourth quarter of 2022, a decrease of 7.6% year over year.

Average order value was $283 for the fourth quarter of 2022, compared to $269 for the fourth quarter of 2021. In the fourth quarter of 2022, 61.7% of total orders delivered were placed via a mobile device, compared to 59.0% in the fourth quarter of 2021.

Shah concluded, “Although the short-term macroeconomic picture is unpredictable, we are confident in our ability to navigate its challenges and are reiterating our commitment to quickly reaching adjusted EBITDA profitability and then to positive free cash flow."