WAYFAIR Reports Second Quarter Financial Results

August 1, 2024  by Karen Parrish in Business Strategy, Industry   

Second Quarter 2024 Financial Highlights

• Total net revenue of $3.1 billion, decreased $54 million, down 1.7% year over year
• U.S. net revenue of $2.7 billion, decreased $55 million, down 2.0% year over year
• International net revenue of $387 million, increased $1 million, up 0.3% year over year. International Net Revenue Constant Currency Growth was 1.3%
• Gross profit was $941 million, or 30.2% of total net revenue
• Net loss was $42 million and Non-GAAP Adjusted EBITDA was $163 million
• Diluted loss per share was $0.34 and Non-GAAP Adjusted Diluted Earnings Per Share was $0.47
• Net cash provided by operating activities was $245 million and Non-GAAP Free Cash Flow was $183 million
• Cash, cash equivalents and short-term investments totaled $1.3 billion and total liquidity was $1.9 billion, including availability under our revolving credit facility

"Q2 was a dynamic quarter that resulted in another period of share gain, amid continued macro headwinds that are pressuring the ways customers are shopping the category. Customers remain cautious in their spending on the home, and our credit card data suggests that the category correction now mirrors the magnitude of the peak to trough decline the home furnishing space experienced during the great financial crisis," said Niraj Shah, CEO, co-founder and co-chairman, Wayfair.

Shah continued, "Every action we've taken, every goal we've prioritized, and every dollar we've spent has been considered under the intense scrutiny of our high expectations for return-on-investment. Even with the challenging macro, this was our best quarter of Adjusted EBITDA and Free Cash Flow generation in three years, clear evidence of our strict operating discipline. We are running the business with the goal of demonstrating substantial growth in profitability this year, even as the top line remains challenging. And that will be our mindset every year going forward as well."

Other Second Quarter Highlights 

• Active customers totaled 22.0 million as of June 30, 2024, an increase of 0.9% year over year
• LTM net revenue per active customer was $540 as of June 30, 2024, a decrease of 0.9% year over year
• Orders per customer, measured as LTM orders divided by active customers, was 1.85 for the second quarter of 2024, compared to 1.82 for the second quarter of 2023
• Orders delivered in the second quarter of 2024 were 10.0 million, a decrease of 2.9% year over year
• Repeat customers placed 81.7% of total orders delivered in the second quarter of 2024, compared to 80.1% in the second quarter of 2023
• Repeat customers placed 8.1 million orders in the second quarter of 2024, a decrease of 2.4% year over year
• Average order value was $313 in the second quarter of 2024, compared to $307 in the second quarter of 2023
• 63.7% of total orders delivered were placed via a mobile device in the second quarter of 2024, compared to 61.6% in the second quarter of 2023

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.