Wayfair Posts Narrower-Than-Expected Loss & Gain in Active Customers

February 22, 2024  by HFBusiness Staff in Business Strategy, Industry   

"Even in a difficult macro environment, we generated a 3% Adjusted EBITDA Margin and had our third consecutive quarter of positive Adjusted EBITDA and Free Cash Flow. In fact, on a revenue base that largely mirrored 2022, our Free Cash Flow in 2023 improved by more than one billion dollars."

Full Year 2023 Financial Highlights

• Total net revenue of $12.0 billion decreased $215 million, down 1.8% year over year
• U.S. net revenue of $10.5 billion increased $18 million, up 0.2% year over year
• International net revenue of $1.5 billion decreased $233 million, down 13.3% year over year. International Net Revenue Constant Currency Growth was (11.6)%
• Gross profit was $3.7 billion or 30.6% of total net revenue
• Net loss was $738 million and Non-GAAP Adjusted EBITDA was $306 million
• Diluted loss per share was $6.47 and Non-GAAP Adjusted Diluted Loss Per Share was $1.13
• Net cash provided by operating activities was $349 million and Non-GAAP Free Cash Flow was ($2) million

"Our efforts over 2023 led to large improvements in our core recipe across availability, speed and price competitiveness,” continued Shah. “These improvements were directly responsible for our robust share expansion throughout the year and for the step-up we saw in customer loyalty, including year-over-year growth in our active customer count by the fourth quarter."

Other Fourth Quarter Highlights 

• Active customers totaled 22.4 million as of December 31, 2023, an increase of 1.4% year over year
• LTM net revenue per active customer was $537 as of December 31, 2023, a decrease of 3.0% year over year
• Orders per customer, measured as LTM orders divided by active customers, was 1.84 for the fourth quarter of 2023, compared to 1.81 for the fourth quarter of 2022
• Orders delivered in the fourth quarter of 2023 were 11.3 million, an increase of 2.7% year over year
• Repeat customers placed 79.4% of total orders delivered in the fourth quarter of 2023, compared to 77.4% in the fourth quarter of 2022
• Repeat customers placed 9.0 million orders in the fourth quarter of 2023, an increase of 5.9% year over year
• Average order value was $276 in the fourth quarter of 2023, compared to $283 in the fourth quarter of 2022
• 62.8% of total orders delivered were placed via a mobile device in the fourth quarter of 2023, compared to 61.7% in the fourth quarter of 2022