Wayfair Inc. Reports Third Quarter Financial Results

November 1, 2023  by HFBusiness Staff in Business Strategy, Industry   

Third Quarter 2023 Financial Highlights

Total net revenue of $2.9 billion increased $104 million, up 3.7% year over year

U.S. net revenue of $2.6 billion increased $132 million, up 5.4% year over year

International net revenue of $372 million decreased $28 million, down 7.0% year over year. International Net Revenue Constant Currency Growth was (7.8)%

Gross profit was $917 million, or 31.1% of total net revenue

Net loss was $163 million and Non-GAAP Adjusted EBITDA was $100 million

Diluted loss per share was $1.40 and Non-GAAP Adjusted Diluted Loss Per Share was $0.13

Net cash provided by operating activities was $121 million and Non-GAAP Free Cash Flow was $42 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

"Wayfair is now in a place where we can drive profitability while simultaneously investing for growth," said Niraj Shah CEO, co-founder and co-chairman, Wayfair.

 "Q3 is one more proof point of exactly that – today we're reporting positive Adjusted EBITDA of $100 million, a second consecutive quarter of positive Free Cash Flow and nearly four percent year-over-year revenue growth driven by strength in orders. We also saw steady improvement in our active customer metric, which is well on its way to positive year-over-year growth."

"We executed further in the third quarter to produce consistent profitability – with Adjusted EBITDA now positive on a trailing 12 month basis – while also driving demonstrable market share growth, as evidenced by our gains on customers and orders.”

“Even with a turbulent macro, we remain committed to our profitability goals in good times and bad. We will continue to drive peerless focus and execution into 2024 and beyond, as we push every day to be the number one shopping destination for the home."

Other Third Quarter Highlights 

Active customers totaled 22.3 million as of September 30, 2023, a decrease of 1.3% year over year

LTM net revenue per active customer was $538 as of September 30, 2023, a decrease of 1.6% year over year

Orders per customer, measured as LTM orders divided by active customers, was 1.83 for the third quarter of 2023, compared to 1.82 for the third quarter of 2022

Orders delivered in the third quarter of 2023 were 9.9 million, an increase of 13.8% year over year

Repeat customers placed 79.7% of total orders delivered in the third quarter of 2023, compared to 77.8% in the third quarter of 2022

Repeat customers placed 7.9 million orders in the third quarter of 2023, an increase of 16.2% year over year

Average order value was $297 in the third quarter of 2023, compared to $325 in the third quarter of 2022

61.7% of total orders delivered were placed via a mobile device in the third quarter of 2023, compared to 58.6% in the third quarter of 2022

Webcast and Conference Call

An archive of the webcast conference call will be available shortly after the call ends on Wayfair's Investor website at investor.wayfair.com. Important information may be disseminated initially or exclusively via the Investor website; investors should consult the site to access this information.