My previous investment thought on Wayfair (NYSE: W ) (published in July) was a buy rating because I was optimistic on the long-term growth outlook and that the business would see strong EBITDA growth when growth inflectsI focus on long-term investments while incorporating short-term shorts to uncover alpha opportunities. My investment approach revolves around bottom-up analysis, delving into the fundamental strengths and weaknesses of individual companies. My investment duration is the medium to long-term. ...

Wayfair just whiffed on its latest report, but better times could be in store.Few pandemic winners have been hit as hard as Wayfair (W 4.43%). Shares of the online home-furnishings leader plunged in 2022 and have been down for the count since then as revenue growth has been negative almost every quarter since mid-2021.In its third-quarter earnings report, the company said revenue declined 2% year over year to $2.9 billion, and it remained unprofitable on a generally accepted accounting principles (GAAP) bas ...

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]

Wayfair Inc. (NYSE:W) Q3 2024 Earnings Conference Call November 1, 2024 8:00 AM ET Company Participants James Lamb - Head of IR Niraj Shah - CEO, Co-Chairman & Co-Founder Kate Gulliver - CFO & Chief Administrative Officer Steve Conine - Co-Chairman & Co-Founder Conference Call Participants Ygal Arounian - Citi Christopher Horvers - JPMorgan Peter Keith - Piper Sandler Simeon Gutman - Morgan Stanley Brian Nagel - Oppenheimer Curtis Nagle - Bank of America Colin Sebastian - Baird Oliver Wintermantel - Evercor ...

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 ...

Key TakeawaysWayfair's third-quarter adjusted profit was well above analysts' estimates, but its shares slipped Friday as it lost customers.The online home furnishing retailer also saw orders delivered and repeat customer orders fall.Co-founder and CEO Niraj Shah said the company faced "sustained challenges in the category." Wayfair (W) shares slipped Friday even as adjusted profit soared above analysts' estimates as the online home furnishing retailer lost customers. The company reported third-quarter adju ...

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 ...