Wayfair, one of the world’s largest online destinations for home furnishings and decor, has reported its financial results for its fourth quarter and full fiscal year ended December 31, 2014.
Fourth Quarter 2014 Financial Highlights
- Net revenue increased to $408.6m, up 38.4% year over year
- Direct Retail revenue, consisting of sales generated primarily through the sites of Wayfair’s five brands, increased to $346.7m, up 55.2% year over year
- Gross profit was $98.4m or 24.1% of revenue, compared to 23.9% of revenue in the same quarter last year
- Adjusted EBITDA was $7.2m
- GAAP basic and diluted net loss per share was $0.73
- Non GAAP diluted net loss per share was $0.18
- Non GAAP free cash flow was $50.8 million
- At the end of the fourth quarter, cash, cash equivalents, and short-term investments totaled $415.9m
Full Year 2014 Financial Highlights
- Net revenue increased to $1.3b, up 44.0% year over year
- Direct Retail revenue increased to $1.1b, up 63.6% year over year
- Adjusted EBITDA was $62.5m
- Non GAAP diluted net loss per share was $1.02 for the year
- Non GAAP free cash flow for the year was $41.9m
“We’re very pleased with the fourth quarter and full year results and the company’s continued strong growth,” says Niraj Shah, co-founder, CEO and co-chairman of Wayfair. “We are particularly excited about the success of our holiday merchandising efforts and our ongoing customer growth. We remain committed to both building the market leading online home brands and to delivering long term value for investors.”
Other Highlights
- The number of active customers in Wayfair's Direct Retail business reached 3.2m as of December 31, 2014, up 53.8% year over year
- Aided brand awareness reached 55% in December 2014, up from 36% in December of 2013
- LTM Net revenue per active customer increased to $342, up 6.2% year over year
- Orders per customer, measured as LTM orders divided by active customers, increased to 1.63 for the fourth quarter, up from 1.58 year over year
- Repeat customers placed 50.3% of total orders in the fourth quarter of 2014, compared to 46.8% in the fourth quarter of 2013
- Orders delivered in the fourth quarter of 2014 were 1.7m, a 45.1% increase year over year
- Total orders delivered in 2014 increased to 5.2m, up from 3.3m in 2013
- Average order value was $204 for the fourth quarter 2014, up from $191 year over year
- In 2014, approximately 29% of total orders delivered for the company's Direct Retail business were placed via a mobile device
Financial Guidance
The following forward-looking statements reflect Wayfair's expectations as of 4th March 2015.
Expectations for the first quarter of 2015 (quarter ending 31st March 2015):
- Total net revenue of $375 to $390m, comprised of Direct Retail net revenue of $330 to $340m and other revenue of $45 to $50m
- Adjusted EBITDA margin of negative 3.5% to 4.0%
