Wayfair Inc (W, Financial) released its third-quarter earnings report on November 1, 2023. The company reported a positive year-over-year revenue growth with strong order momentum and profitability. The total net revenue of $2.9 billion increased by $104 million, marking a 3.7% growth year over year. The U.S. net revenue of $2.6 billion increased by $132 million, up 5.4% year over year. However, the international net revenue of $372 million decreased by $28 million, down 7.0% year over year.
Financial Highlights
The company's gross profit was $917 million, or 31.1% of total net revenue. The net loss was $163 million, and Non-GAAP Adjusted EBITDA was $100 million. The 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.
CEO Commentary
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."
Key Financial Statement and Operating Metrics
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 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.
Balance Sheet Summary
As of September 30, 2023, Wayfair Inc (W, Financial) had total assets of $3.36 billion, including $1.28 billion in cash and cash equivalents. The company's total liabilities stood at $6.068 billion, resulting in a total stockholders' deficit of $2.708 billion.
Income Statement Summary
For the third quarter of 2023, Wayfair Inc (W, Financial) reported a net loss of $163 million, compared to a net loss of $283 million for the same period in 2022. The company's loss per share for the quarter was $1.40, compared to a loss per share of $2.66 for the third quarter of 2022.
Wayfair Inc (W, Financial) continues to focus on driving profitability while simultaneously investing for growth, as evidenced by its positive Adjusted EBITDA and second consecutive quarter of positive Free Cash Flow.
Explore the complete 8-K earnings release (here) from Wayfair Inc for further details.
