Wayfair(US:W)2025-05-01 20:09Financial Performance - For the three months ended March 31, 2025, net revenue increased by $1 million, or approximately 0.04%, compared to the same period in 2024, driven by higher average order value [100][110]. - U.S. net revenue increased by 1.6% to $2.429 billion, while International net revenue decreased by 10.9% to $301 million, primarily due to the exit from the German market [111][112]. - The average order value for the three months ended March 31, 2025, was $301, up from $285 in the same period in 2024 [108]. - Adjusted EBITDA for the three months ended March 31, 2025, was $106 million, compared to $75 million in the same period in 2024 [108]. - The company reported a net loss of $113 million for the three months ended March 31, 2025, an improvement from a net loss of $248 million in the same period in 2024 [108]. - Free Cash Flow for the three months ended March 31, 2025, was $(139) million, an improvement from $(193) million in the same period in 2024 [108]. - For the three months ended March 31, 2025, total operating expenses decreased to $959 million, a reduction of 9.0% compared to $1,054 million in the same period in 2024 [117]. - Advertising expenses increased by $20 million, or 6.2%, reaching $344 million for the three months ended March 31, 2025, compared to $324 million in 2024 [121]. - Customer service and merchant fees decreased by $7 million, or 6.3%, totaling $107 million for the three months ended March 31, 2025, compared to $117 million in 2024 [119]. - Restructuring charges decreased by $23 million, or 29.1%, totaling $56 million for the three months ended March 31, 2025, compared to $79 million in 2024 [127]. - Interest expense, net increased by $17 million, or 283.3%, reaching $(23) million for the three months ended March 31, 2025, compared to $(6) million in 2024 [129]. - Other income (expense), net increased by $14 million, or 350.0%, totaling $10 million for the three months ended March 31, 2025, compared to $(4) million in 2024 [131]. - Impairment and other related charges increased by $23 million, or 100.0%, totaling $23 million for the three months ended March 31, 2025, compared to no charges in 2024 [125]. - Net cash used in operating activities decreased to $96 million for the three months ended March 31, 2025, compared to $139 million in the same period of 2024, reflecting a $43 million improvement [154]. - Adjusted net income for the same period was $12 million, compared to an adjusted net loss of $39 million in Q1 2024 [177]. - The diluted loss per share improved to $(0.89) from $(2.06) year-over-year [177]. - Adjusted diluted earnings per share were $0.10, compared to $(0.32) in the prior year [177]. - The weighted-average number of shares outstanding increased to 127 million from 120 million year-over-year [177]. Customer Metrics - As of March 31, 2025, the company had 21 million active customers, with 80.2% of orders coming from repeat buyers [100]. Market Strategy - The company aims to capture more market share in the online home goods category, leveraging its e-commerce business model [99]. Liquidity and Debt - As of March 31, 2025, total liquidity was $1.368 billion, consisting of cash and cash equivalents of $1.338 billion and short-term investments of $30 million [139]. - The company had $3.3 billion principal amount of indebtedness outstanding as of March 31, 2025, including various convertible senior notes and secured notes [141]. - The company recorded a gain on debt extinguishment of $25 million for the three months ended March 31, 2025, representing a 100.0% increase compared to no gain in 2024 [136]. - The company issued $700 million aggregate principal amount of the 2030 Secured Notes during the three months ended March 31, 2025 [159]. - The company is required to maintain a Consolidated Senior Secured Debt to Consolidated EBITDA Ratio of 4.0 to 1.0, with a 0.5 step-up following certain permitted acquisitions [148]. - The company does not engage in any off-balance sheet activities and has no off-balance sheet interest in variable interest entities [158]. Economic Conditions - The company continues to monitor macroeconomic conditions, including inflation and consumer spending patterns, which may impact future performance [102][105]. Accounting Policies - There have been no material changes to critical accounting policies since December 31, 2024 [179]. - No significant changes in market risk exposures have occurred since December 31, 2024 [181].