Wayfair Inc. Reports Financial Results for Third Quarter

November 3, 2024  by Karen Parrish in Business Strategy, Industry   

Third Quarter 2024 Financial Highlights

• Total net revenue of $2.9 billion, decreased $60 million, down 2.0% year over year
• U.S. net revenue of $2.5 billion, decreased $60 million, down 2.3% year over year
• International net revenue of $372 million and International Net Revenue Constant Currency Growth remained constant year over year
• Gross profit was $873 million, or 30.3% of total net revenue
• Net loss was $74 million and Non-GAAP Adjusted EBITDA was $119 million
• Diluted loss per share was $0.60 and Non-GAAP Adjusted Diluted Earnings Per Share was $0.22
• Net cash provided by operating activities was $49 million and Non-GAAP Free Cash Flow was ($9) 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

"Q3 marked another proofpoint of resilience for Wayfair with further market share capture in the face of sustained challenges in the category. Once again, we navigated a dynamic consumer environment while driving further discipline on costs to achieve a mid-single-digit Adjusted EBITDA margin for the second quarter in a row. As I've mentioned before, our north star is driving Adjusted EBITDA dollars in excess of equity-based compensation and capital expenditures, and we're pleased to be making noteworthy improvements across each of these fronts," said Niraj Shah, CEO, co-founder and co-chairman, Wayfair.

Shah continued, "We remain laser-focused on delivering healthy profitability while setting ourselves up for success as the category rebounds. The core goal across each of our initiatives in 2024 is to foster customer loyalty and spur repeat business while driving economic value. We're not just aiming for short-term gains but building long-lasting relationships with our customers that will be accretive on both the top and bottom lines."

Other Third Quarter Highlights 

• Active customers totaled 21.7 million as of September 30, 2024, a decrease of 2.7% year over year
• LTM net revenue per active customer was $545 as of September 30, 2024, an increase of 1.3% year over year
• Orders per customer, measured as LTM orders divided by active customers, was 1.85 for the third quarter of 2024, compared to 1.83 for the third quarter of 2023
• Orders delivered in the third quarter of 2024 were 9.3 million, a decrease of 6.1% year over year
• Repeat customers placed 79.9% of total orders delivered in the third quarter of 2024, compared to 79.7% in the third quarter of 2023
• Repeat customers placed 7.4 million orders in the third quarter of 2024, a decrease of 6.3% year over year
• Average order value was $310 in the third quarter of 2024, compared to $297 in the third quarter of 2023
• 63.0% of total orders delivered were placed via a mobile device in the third quarter of 2024, compared to 61.7% in the third 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.