Q3 Net Revenue of $2.9 billion with 21.7 million Active Customers
BOSTON, Nov. 1, 2024 -- Wayfair Inc. ("Wayfair," "we," or "our") (NYSE: W), one of the world's largest destinations for the home, today reported financial results for its third quarter ended September 30, 2024.
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
Key Financial Statement and Operating Metrics | ||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||
2024 | 2023 | 2024 | 2023 | |||||
(in millions, except LTM net revenue per active customer, average order value and per share data) | ||||||||
Key Financial Statement Metrics: | ||||||||
Net revenue | $ 2,884 | $ 2,944 | $ 8,730 | $ 8,889 | ||||
Gross profit | $ 873 | $ 917 | $ 2,633 | $ 2,723 | ||||
Loss from operations | $ (74) | $ (152) | $ (344) | $ (641) | ||||
Net loss | $ (74) | $ (163) | $ (364) | $ (564) | ||||
Loss per share: | ||||||||
Basic | $ (0.60) | $ (1.40) | $ (2.98) | $ (4.99) | ||||
Diluted | $ (0.60) | $ (1.40) | $ (2.98) | $ (4.99) | ||||
Net cash provided by operating activities | $ 49 | $ 121 | $ 155 | $ 191 | ||||
Key Operating Metrics: | ||||||||
Active customers (1) | 22 | 22 | 22 | 22 | ||||
LTM net revenue per active customer (2) | $ 545 | $ 538 | $ 545 | $ 538 | ||||
Orders delivered (3) | 9 | 10 | 29 | 30 | ||||
Average order value (4) | $ 310 | $ 297 | $ 303 | $ 297 | ||||
Non-GAAP Financial Measures: | ||||||||
Adjusted EBITDA | $ 119 | $ 100 | $ 357 | $ 214 | ||||
Free Cash Flow | $ (9) | $ 42 | $ (19) | $ (64) | ||||
Adjusted Diluted Earnings (Loss) per Share | $ 0.22 | $ (0.13) | $ 0.38 | $ (1.02) | ||||
(1) | The number of active customers represents the total number of individual customers who have purchased at least once directly from our sites during the preceding twelve-month period. The change in active customers in a reported period captures both the inflow of new customers as well as the outflow of existing customers who have not made a purchase in the last twelve months. We view the number of active customers as a key indicator of our growth. |
(2) | LTM net revenue per active customer represents our total net revenue in the last twelve months divided by our total number of active customers for the same preceding twelve-month period. We view LTM net revenue per active customer as a key indicator of our customers' purchasing patterns, including their initial and repeat purchase behavior. |
(3) | Orders delivered represent the total orders delivered in any period, inclusive of orders that may eventually be returned. As we ship a large volume of packages through multiple carriers, actual delivery dates may not always be available, and as such we estimate delivery dates based on historical data. We recognize net revenue when an order is delivered, and therefore orders delivered, together with average order value, is an indicator of the net revenue we expect to recognize in a given period. We view orders delivered as a key indicator of our growth. |
(4) | We define average order value as total net revenue in a given period divided by the orders delivered in that period. We view average order value as a key indicator of the mix of products on our sites, the mix of offers and promotions and the purchasing behavior of our customers. |
Webcast and Conference Call
Wayfair will host a conference call and webcast to discuss its third quarter 2024 financial results today at 8 a.m. (ET). Investors and participants should register for the call in advance by visiting https://bit.ly/3AjK2fc. After registering, instructions will be shared on how to join the call. The call will also be available via live webcast at https://bit.ly/4hfCcE7. 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.
About Wayfair
Wayfair is the destination for all things home, and we make it easy to create a home that is just right for you. Whether you're looking for that perfect piece or redesigning your entire space, Wayfair offers quality finds for every style and budget, and a seamless experience from inspiration to installation.
The Wayfair family of brands includes:
- Wayfair: Every style. Every home.
- AllModern: All of modern made simple.
- Birch Lane: Classic style for joyful living.
- Joss & Main: The ultimate style edit for home.
- Perigold: The destination for luxury home.
- Wayfair Professional: A one-stop Pro shop.
Wayfair generated $11.8 billion in net revenue for the twelve months ended September 30, 2024 and is headquartered in Boston, Massachusetts with global operations.
Media Relations
This News is brought to you by Qube Mark, your trusted source for the latest updates and insights in marketing technology. Stay tuned for more groundbreaking innovations in the world of technology.
