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Wayfair Reports Financial Results 2023 Second Quarter

August 3, 2023  by HFBusiness Staff in Business Strategy, Industry   

Second Quarter 2023 Financial Highlights

~ Total net revenue of $3.2 billion decreased $113 million, down 3.4% year over year
~ U.S. net revenue of $2.8 billion decreased $11 million, down 0.4% year over year
~ International net revenue of $386 million decreased $102 million, down 20.9% year over year. International Net Revenue Constant Currency Growth was (18.2)%
~ Gross profit was $985 million, or 31.1% of total net revenue
~ Net loss was $46 million and Non-GAAP Adjusted EBITDA was $128 million
~ Diluted loss per share was $0.41 and Non-GAAP Adjusted Diluted Earnings Per Share was $0.21
~ Net cash provided by operating activities was $217 million and Non-GAAP Free Cash Flow was $128 million
~ Cash, cash equivalents and short-term investments totaled $1.3 billion and total liquidity was $1.8 billion, including availability under our revolving credit facility

"Last year, we laid out a plan to strengthen our business that included a path to sustainable and growing profitability with several key milestones. For the past few quarters, you've seen us execute against that plan - to lower our costs, focus on the basics and earn more customer and supplier loyalty,” said Niraj Shah CEO, co-founder and co-chairman, Wayfair.

“And you've seen the tangible impact of this plan as our performance has continued to improve. I'm pleased to share today that we've passed one of our key milestones and we are reporting positive adjusted EBITDA and positive free cash flow,"

"This is in combination with a return to momentum in our top line with positive year-over-year order growth, and sequentially higher active customer count, all while investing into initiatives for future growth.”

Shah concluded, “This is how we ran the business for our first decade and how we'll continue to do so going forward - profitable, while investing for growth. We think we are now in a very exciting place - having scale while remaining ambitious and entrepreneurial - and we plan to take full advantage of this."

Other Second Quarter Highlights 

~ Active customers totaled 21.8 million as of June 30, 2023, a decrease of 7.6% year over year
~ LTM net revenue per active customer was $545 as of June 30, 2023, an increase of 1.5% year over year
~ Orders per customer, measured as LTM orders divided by active customers, was 1.82 for the second quarter of 2023, compared to 1.85 for the second quarter of 2022
~ Orders delivered in the second quarter of 2023 were 10.3 million, an increase of 3.0% year over year
~ Repeat customers placed 80.1% of total orders delivered in the second quarter of 2023, compared to 78.6% in the second quarter of 2022
~ Repeat customers placed 8.3 million orders in the second quarter of 2023, an increase of 6.4% year over year
~ Average order value was $307 in the second quarter of 2023, compared to $330 in the second quarter of 2022
~ 61.6% of total orders delivered were placed via a mobile device in the second quarter of 2023, compared to 59.0% in the second quarter of 2022