Wayfair, Inc. Reports First Quarter Financial Results

May 7, 2023  by HFBusiness Staff in Business Strategy, Industry   

First Quarter 2023 Financial Highlights

~  Total net revenue of $2.8 billion decreased $219 million, down 7.3% year over year

~  U.S. net revenue of $2.4 billion decreased $127 million, down 5.0% year over year

~  International net revenue of $359 million decreased $92 million, down 20.4% year over year. International Net Revenue Constant Currency Growth was (14.4)%

~  Gross profit was $821 million or 29.6% of total net revenue

~  Net loss was $355 million and Non-GAAP Adjusted EBITDA was ($14) million

~  Diluted loss per share was $3.22 and Non-GAAP Adjusted Diluted Loss Per Share was $1.13

~  Net cash used in operating activities was $147 million and Non-GAAP Free Cash Flow was ($234) million

~  Cash, cash equivalents and short-term investments totaled $1.0 billion and total liquidity was $1.6 billion including availability under our revolving credit facility

"This was a strong quarter for Wayfair, and we are pleased to be seeing consistent market share gains and a significant improvement in cost structure versus last quarter that gets us to nearly Adjusted EBITDA breakeven in Q1,” said Niraj Shah CEO, co-founder and co-chairman, Wayfair.

“Most exciting is that we expect to have positive Adjusted EBITDA in the second quarter. We have always known, and now we are clearly demonstrating that the Wayfair model is inherently profitable and that there is considerable opportunity in front of us to rapidly drive further margin expansion."

Shah continued, "Last August, we shared a roadmap laying out our path to profitability and we have been executing against that plan.”

“Through a focus on our three core initiatives of driving customer and supplier loyalty, nailing the basics, and cost efficiency, we have made significant strides in improving our offering and customer experience, simultaneously reducing our cost structure while investing for future growth," Shah concluded.

Other First Quarter Highlights 

~  Active customers totaled 21.7 million as of March 31, 2023, a decrease of 14.6% year over year

~  LTM net revenue per active customer was $552 as of March 31, 2023, an increase of 6.2% year over year

~  Orders per customer, measured as LTM orders divided by active customers, was 1.81 for the first quarter of 2023, compared to 1.87 for the first quarter of 2022

~  Orders delivered in the first quarter of 2023 were 9.7 million, a decrease of 6.7% year over year

~  Repeat customers placed 79.1% of total orders delivered in the first quarter of 2023, compared to 77.7% in the first quarter of 2022

~  Repeat customers placed 7.6 million orders in the first quarter of 2023, a decrease of 6.2% year over year

~  Average order value was $287 in both the first quarter of 2023 and the first quarter of 2022

~  In the first quarter of 2023, 62.1% of total orders delivered were placed via a mobile device, compared to 59.4% in the first quarter of 2022