Wayfair (W) reported third-quarter 2024 non-GAAP earnings of 22 cents per share, beating the Zacks Consensus Estimate by 46.67%. The company reported a loss of 13 cents per share in the year-ago quarter.Net revenues of $2.88 billion beat the consensus mark by 0.04%. The top line decreased 2% year over year.Last Twelve Months (LTM) net revenues per active customer decreased 1.3% year over year to $545, which beat the Zacks Consensus Estimate by 5.17%.Further, the active customer base declined. The metric dec ...

Revenue Performance - Net revenue decreased by 2.0% to $2.884 billion in Q3 2024 compared to $2.944 billion in Q3 2023, driven by lower order volume[104][112] - U.S. net revenue decreased by 2.3% to $2.512 billion in Q3 2024, while international net revenue remained constant at $372 million[112][113] - Net revenue decreased by $159 million (1.8%) to $8,730 million in the nine months ended September 30, 2024, driven by lower order volume and macroeconomic pressures[133] Customer Metrics - Active customers remained flat at 22 million, with 79.9% of orders coming from repeat buyers in Q3 2024[104] - Average order value increased to $310 in Q3 2024 from $297 in Q3 2023[111] - Orders delivered decreased to 9 million in Q3 2024 from 10 million in Q3 2023[111] - LTM net revenue per active customer increased to $545 in Q3 2024 from $538 in Q3 2023[111] Cost of Goods Sold and Operating Expenses - Cost of goods sold decreased by 0.8% to $2.011 billion in Q3 2024, but increased as a percentage of net revenue to 69.7% from 68.9% in Q3 2023[114][115] - Cost of goods sold decreased by $69 million (1.1%) to $6,097 million in the nine months ended September 30, 2024, due to operational cost savings and lower order volume[135] - Total operating expenses decreased by $122 million (11.4%) to $947 million in Q3 2024 compared to $1,069 million in Q3 2023, primarily due to reduced compensation costs[117] - Selling, operations, technology, general and administrative expenses decreased by $116 million (19.5%) to $480 million in Q3 2024, driven by lower compensation costs[117] - Selling, operations, technology, general and administrative expenses decreased by $213 million, or 15.0%, for the nine months ended September 30, 2024, compared to the same period in 2023[144] Advertising Expenses - Advertising expenses increased by $17 million (5.0%) to $354 million in Q3 2024, reflecting renewed investment opportunities and changing market conditions[123] - Advertising expenses increased by $27 million (2.7%) to $1,043 million in the nine months ended September 30, 2024, reflecting strategic investments in response to market conditions[143] - Advertising expenses increased to 11.9% of net revenue for the nine months ended September 30, 2024, compared to 11.4% in the same period in 2023[144] Compensation and Related Costs - Equity-based compensation and related taxes decreased by $48 million (33.3%) in Q3 2024 compared to Q3 2023, primarily due to fewer vested restricted stock units[118] - Equity-based compensation and related taxes decreased by $142 million (31.1%) in the nine months ended September 30, 2024, driven by fewer vested restricted stock units[140] - Customer service and merchant fees decreased by $21 million (16.3%) in Q3 2024, excluding equity-based compensation, due to reduced compensation costs[120] - Customer service and merchant fees decreased by $61 million (15.4%) in the nine months ended September 30, 2024, excluding equity-based compensation, due to reduced compensation costs[141] Financial Performance Metrics - Adjusted EBITDA increased to $119 million in Q3 2024 from $100 million in Q3 2023[111] - Free Cash Flow was negative $9 million in Q3 2024 compared to positive $42 million in Q3 2023[111] - Adjusted Diluted Earnings per Share improved to $0.22 in Q3 2024 from a loss of $0.13 per share in Q3 2023[111] - Adjusted EBITDA for the nine months ended September 30, 2024, was $357 million, compared to $214 million in the same period in 2023[181] - Free Cash Flow for the nine months ended September 30, 2024, was -$19 million, compared to -$64 million in the same period in 2023[185] - Adjusted Diluted Earnings (Loss) per Share for the nine months ended September 30, 2024, was $0.38, compared to -$1.02 in the same period in 2023[191] - Net loss for the nine months ended September 30, 2024, was $364 million, compared to $564 million in the same period in 2023[181] Restructuring and Impairment Charges - Restructuring charges increased by $14 million, or 21.5%, for the nine months ended September 30, 2024, compared to the same period in 2023[146] - Restructuring charges for the nine months ended September 30, 2024, were $79 million, primarily due to one-time employee severance and benefit costs[182] - Impairment and other related net charges decreased by $12 million, or 85.7%, for the nine months ended September 30, 2024, compared to the same period in 2023[145] Cash Flow and Capital Expenditures - Net cash provided by operating activities decreased by $36 million for the nine months ended September 30, 2024, compared to the same period in 2023[170] - Capital Expenditures were 2.0% of net revenue for the nine months ended September 30, 2024, primarily for equipment purchases and improvements in leased warehouses and proprietary technology investments[172] - Cash flows from financing activities decreased by $74 million during the nine months ended September 30, 2024, compared to the same period in 2023, due to the net impact of debt and other financing transactions[174] - Net cash provided by operating activities for the nine months ended September 30, 2024, was $155 million, compared to $191 million in the same period in 2023[185] - Purchase of property and equipment for the nine months ended September 30, 2024, was $53 million, compared to $101 million in the same period in 2023[185] - Site and software development costs for the nine months ended September 30, 2024, were $121 million, compared to $154 million in the same period in 2023[185] Other Financial Metrics - Interest expense, net remained constant at $15 million for the nine months ended September 30, 2024, compared to the same period in 2023[148] - Other income (expense), net increased by $5 million, or 250.0%, for the nine months ended September 30, 2024, compared to the same period in 2023[149] - Gain on debt extinguishment decreased by $100 million, or 100.0%, for the nine months ended September 30, 2024, compared to the same period in 2023[151] - Provision for income taxes, net increased by $2 million, or 33.3%, for the nine months ended September 30, 2024, compared to the same period in 2023[153] - Cash and cash equivalents and short-term investments totaled $1.3 billion as of September 30, 2024[155] Market Risk and Other Notes - No significant changes in the company's exposures to market risk since December 31, 2023[198]

Financial Data and Key Metrics Changes - Net revenue decreased by 2% year-over-year in Q3 2024, and down approximately 7.5% sequentially, driven by a 6.1% decline in orders, partially offset by a 4.4% increase in average order value (AOV) year-on-year [32][33] - Gross margin for the quarter was 30.3% of net revenue, with expectations to target the lower end of the 30% to 31% range moving forward [34][48] - Adjusted EBITDA for Q3 was $119 million, representing a margin of 4.1% of net revenue, marking the second consecutive quarter of mid-single digit adjusted EBITDA margin [43] Business Line Data and Key Metrics Changes - The company has seen nine consecutive quarters of fixed cost compression, with Q3 results reflecting the lowest selling, operations, technology, general and administrative (SOTG&A) expenses since 2021 [12][41] - The advertising expense was 12.3% of net revenue, slightly higher than previous quarters due to renewed investment opportunities [40] Market Data and Key Metrics Changes - The housing market has experienced a historic slowdown, with only 25 out of every 1,000 U.S. homes changing hands in the first eight months of the year, significantly below pre-pandemic levels [11] - The company is not relying on a specific recovery timeframe in the housing market but is focused on cost efficiency and profitability in a recessionary environment [12] Company Strategy and Development Direction - The company aims to enhance customer loyalty and spur repeat business through initiatives like the Wayfair Rewards program, which offers benefits such as 5% back on purchases and free shipping [15][20] - The focus is on optimizing pricing and improving logistics to capture market share, with ongoing enhancements to the customer experience and technology [56][57] Management's Comments on Operating Environment and Future Outlook - Management noted that consumers are currently more price-sensitive and are shifting towards lower investment purchases, impacting sales of larger ticket items [9][10] - Despite the challenging macro environment, management remains optimistic about capturing market share and expects to see growth in adjusted EBITDA dollars in 2025 compared to 2024 [59][61] Other Important Information - The company ended Q3 with $1.3 billion in cash and equivalents, and $1.9 billion in total liquidity, bolstered by a recent high-yield debt offering [44][45] - Free cash flow for Q3 was negative $9 million, with expectations for healthy free cash flow generation in Q4 [46][50] Q&A Session Summary Question: Can you quantify the share gain and its sources? - Management indicated consistent market share gains since Q4 2022, achieved through pricing optimization and improvements in logistics and customer experience [55][56] Question: What is the confidence level regarding 2025 EBITDA? - Management expressed confidence that 2025 EBITDA dollars will exceed 2024 levels due to ongoing market share growth and cost discipline [59][61] Question: Why is the revenue guidance for Q4 down slightly? - Management attributed the cautious revenue guidance to uncertainties surrounding the upcoming election and a challenging macro environment [64][66] Question: How will advertising costs be affected by the election? - Management noted that certain advertising channels may see elevated rates pre-election, but they will remain disciplined in spending and will not chase non-economic opportunities [71][72] Question: What are the key differences between the new Wayfair Rewards program and the previous MyWay program? - Management highlighted that the new program offers a stronger customer value proposition, including immediate rewards and benefits that encourage increased spending [73][74]

Shares of Wayfair Inc (NYSE:W) are sliding today, reversing premarket gains despite the Boston-based department store name's better-than-expected third-quarter results. The company's adjusted earnings of 22 cents per share beat estimates of 13 cents per share, while revenue also came in above expectations, despite falling from the same quarter a year ago. W was last seen down 0.8% at $42.50, and headed for its fifth-straight week of losses. The equity was rejected by pressure at the $58 level earlier this m ...

Core Insights - Wayfair's third-quarter adjusted profit exceeded analysts' expectations, but the company experienced a decline in customer numbers and orders delivered [1][2] - The company reported adjusted earnings per share (EPS) of $0.22, nearly double the forecast, while revenue fell 2% year-over-year to $2.88 billion [1][2] - CEO Niraj Shah acknowledged ongoing challenges in the market, despite the company managing to grow its market share [3] Customer Metrics - Active customers decreased by 3% to 21.7 million, and orders delivered fell by 6% to 9.3 million [2] - Repeat customers placed 7.4 million orders, also down 6% [2] - Revenue per customer increased by 1% to $545, and the average order value rose by $13 to $310 [2] Financial Performance - The adjusted EBITDA margin was reported at 4% [1] - Operating expenses were reduced by 11% to $947 million [2] - Despite initial gains in premarket trading, Wayfair's shares fell by 1% and have lost a third of their value this year [3]

Wayfair (W) reported $2.88 billion in revenue for the quarter ended September 2024, representing a year-over-year decline of 2%. EPS of $0.22 for the same period compares to -$0.13 a year ago.The reported revenue represents a surprise of +0.04% over the Zacks Consensus Estimate of $2.88 billion. With the consensus EPS estimate being $0.15, the EPS surprise was +46.67%.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their ...

Wayfair (W) came out with quarterly earnings of $0.22 per share, beating the Zacks Consensus Estimate of $0.15 per share. This compares to loss of $0.13 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 46.67%. A quarter ago, it was expected that this online home goods retailer would post earnings of $0.50 per share when it actually produced earnings of $0.47, delivering a surprise of -6%.Over the last four quarters, the company ...

Exhibit 99.1 Wayfair Announces Third Quarter 2024 Results, Reports Strong Profitability in Tandem with Further Market Share Gains Q3 Net Revenue of $2.9 billion with 21.7 million Active Customers BOSTON, MA — November 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 millio ...

Q3 Net Revenue of $2.9 billion with 21.7 million Active CustomersBOSTON, Nov. 1, 2024 /PRNewswire/ -- 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 r ...

Wall Street analysts forecast that Wayfair (W) will report quarterly earnings of $0.15 per share in its upcoming release, pointing to a year-over-year increase of 215.4%. It is anticipated that revenues will amount to $2.89 billion, exhibiting a decline of 1.9% compared to the year-ago quarter. The current level reflects a downward revision of 0.4% in the consensus EPS estimate for the quarter over the past 30 days. This demonstrates how the analysts covering the stock have collectively reappraised their in ...