BOSTON–(BUSINESS WIRE)–Wayfair Inc. (NYSE: W), one of the world’s largest online destinations for the home, today reported financial results for its second quarter ended June 30, 2022.
Second Quarter 2022 Financial Highlights
- Total net revenue of $3.3 billion decreased $573 million, down 14.9% year over year
- U.S. net revenue of $2.8 billion decreased $302 million, down 9.7% year over year
- International net revenue of $0.5 billion decreased $271 million, down 35.7% year over year. International Net Revenue Constant Currency Growth was (34.4)%
- Gross profit was $896 million or 27.3% of total net revenue
- Net loss was $378 million and Non-GAAP Adjusted EBITDA was $(108) million
- Diluted loss per share was $3.59
- Non-GAAP Adjusted Diluted Loss per Share was $1.94
- Net cash flows used in operating activities was $115 million and Non-GAAP Free Cash Flow was $(244) million
- Cash, cash equivalents and short-term investments totaled $1.7 billion
“During a difficult macroeconomic environment, we remain squarely focused on our customers and our suppliers, and on making sure Wayfair is their preferred platform for the Home. We are tightly controlling our many levers and steering Wayfair in a financially responsible manner through this period,” said Niraj Shah, CEO, co-founder and co-chairman, Wayfair.
“Consumers remain engaged and responsive to the right combination of wide selection, great deals, and satisfying service, while suppliers are leaning in with Wayfair, extending us more product and better wholesale costs, while using more of our service offerings. Simultaneously, we are actively maneuvering Wayfair to generate cash consistently and to control our own destiny. Underpinning this plan is a broad prioritization exercise intended to balance continued investment in long-term growth while ensuring tight day-to-day execution across a range of macro scenarios.”
Other Second Quarter Highlights
- Active customers reached 23.6 million as of June 30, 2022, a decrease of 24.1% year over year
- LTM net revenue per active customer was $537 as of June 30, 2022, an increase of 12.3% year over year
- Orders per customer, measured as LTM orders divided by active customers, was 1.85 for the second quarter of 2022, compared to 1.96 for the second quarter of 2021
- Orders delivered in the second quarter of 2022 were 10.0 million, a decrease of 28.2% year over year
- Repeat customers placed 78.6% of total orders in the second quarter of 2022, compared to 75.6% in the second quarter of 2021
- Repeat customers placed 7.8 million orders in the second quarter of 2022, a decrease of 25.7% year over year
- Average order value was $330 for the second quarter of 2022, compared to $278 for the second quarter of 2021
- In the second quarter of 2022, 59.0% of total orders delivered were placed via a mobile device, compared to 59.4% in the second quarter of 2021
Key Financial and Operating Metrics
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Three months ended June 30, |
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Six months ended June 30, |
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2022 |
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2021 |
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2022 |
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2021 |
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(in millions, except LTM Net Revenue per Active Customer, Average Order Value and per share data) |
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Key Financial Statement Metrics: |
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Net revenue |
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$ |
3,284 |
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$ |
3,857 |
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$ |
6,277 |
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$ |
7,335 |
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Gross profit |
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$ |
896 |
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$ |
1,128 |
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$ |
1,699 |
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$ |
2,131 |
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(Loss) income from operations |
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$ |
(372 |
) |
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$ |
146 |
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$ |
(682 |
) |
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$ |
172 |
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Net (loss) income |
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$ |
(378 |
) |
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$ |
131 |
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$ |
(697 |
) |
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$ |
149 |
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(Loss) earnings per share: |
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Basic |
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$ |
(3.59 |
) |
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$ |
1.26 |
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$ |
(6.62 |
) |
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$ |
1.44 |
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Diluted |
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$ |
(3.59 |
) |
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$ |
1.14 |
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$ |
(6.62 |
) |
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$ |
1.33 |
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Net cash (used in) provided by operating activities |
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$ |
(115 |
) |
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$ |
275 |
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$ |
(341 |
) |
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$ |
452 |
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Key Operating Metrics: |
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Active customers (1) |
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24 |
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31 |
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24 |
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31 |
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LTM net revenue per active customer (2) |
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$ |
537 |
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$ |
478 |
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$ |
537 |
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$ |
478 |
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Orders delivered (3) |
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10 |
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14 |
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20 |
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29 |
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Average order value (4) |
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$ |
330 |
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$ |
278 |
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$ |
308 |
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$ |
257 |
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Non-GAAP Financial Measures: |
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Adjusted EBITDA |
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$ |
(108 |
) |
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$ |
311 |
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$ |
(221 |
) |
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$ |
517 |
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Free Cash Flow |
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$ |
(244 |
) |
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$ |
206 |
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$ |
(575 |
) |
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$ |
319 |
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Adjusted Diluted (Loss) Earnings per Share |
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$ |
(1.94 |
) |
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$ |
1.89 |
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$ |
(3.90 |
) |
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$ |
2.89 |
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(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. |
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(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 |
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(3) |
Orders delivered represents the total orders delivered in that 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. |
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(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. |
About Wayfair
Wayfair is the destination for all things home: helping everyone, anywhere create their feeling of home. From expert customer service, to the development of tools that make the shopping process easier, to carrying one of the widest and deepest selections of items for every space, style, and budget, Wayfair gives everyone the power to create spaces that are just right for them.
The Wayfair family of brands includes:
- Wayfair – Everything home — for a space that’s all you.
- Joss & Main – The ultimate style edit for home.
- AllModern – All of modern, made simple.
- Birch Lane – A fresh take on the classics.
- Perigold – An undiscovered world of luxury design.
- Wayfair Professional – Just right for Pros.
Wayfair generated $12.6 billion in net revenue for the twelve months ended June 30, 2022. Headquartered in Boston, Massachusetts with operations throughout North America and Europe, Wayfair employs approximately 18,000 people.
