23 May 2024, 08:12
By Furniture News Feb 23, 2023

Q4 fails to lift Wayfair in 2022

Wayfair has delivered financial results for its Q4 and the full year ended 31st December, 2022.

Q4 saw total net revenue down $151m to $3.1b (-4.6% YoY), with international net revenue down $102m to $415m (-19.7% YoY).

For the full year, total net revenue fell by $1.5b to $12.2b (-10.9% YoY), with international net revenue down $705m to $1.8b (-28.7% YoY).

Gross profit was $3.4b (28% of total net revenue), yet Wayfair saw a net loss of $1.3b (Non-GAAP Adjusted EBITDA was -$416m).

"We are excited to see customers respond positively to improvements in our core recipe - with compelling pricing, faster delivery times and increasing availability bearing fruit in the form of market share gains," comments Niraj Shah, Wayfair's CEO, co-founder and co-chairman.

"We enter 2023 as a lean, focused team, driven by the same key priorities that defined much of 2022 - driving cost efficiency, nailing the basics, and earning customer and supplier loyalty every day. Although the short-term macroeconomic picture is unpredictable, we are confident in our ability to navigate its challenges and are reiterating our commitment to quickly reaching adjusted EBITDA profitability and then to positive free cash flow."

As of 31st December, Wayfair's active customer base totalled 22.1 million (down -19.0% YoY), but LTM net revenue per active customer was $553 (+10.4% YoY).

Eleven million orders were delivered in Q4 2022 (-9.1% YoY), while AOV was $283, compared to $269 in Q4 2021.

The year saw Wayfair cut its global workforce significantly following the pandemic, in order to "reduce operating expenses and adjust investment priorities" (see related).

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