Wayfair has reported its financial results for its Q1 (ended 31st March, 2023).
The online giant saw net revenue fall by -7.3% YoY to $2.8b – of that, international net revenue was down -24% YoY, at $359m. Wayfair made a gross profit of $821m (29.6% of its total net revenue), yet ultimately made a net loss of $355m (non-GAAP adjusted EBITDA was down -$14m).
However, Niraj Shah, CEO, co-founder and co-chairman, was positive about the performance, stating: "This was a strong quarter for Wayfair, and we are pleased to be seeing consistent market share gains and a significant improvement in cost structure versus last quarter that gets us to nearly adjusted EBITDA breakeven in Q1. Most exciting is that we expect to have positive adjusted EBITDA in the second quarter. We have always known, and now we are clearly demonstrating that the Wayfair model is inherently profitable and that there is considerable opportunity in front of us to rapidly drive further margin expansion.
"Last August, we shared a roadmap laying out our path to profitability and we have been executing against that plan. Through a focus on our three core initiatives of driving customer and supplier loyalty, nailing the basics, and cost efficiency, we have made significant strides in improving our offering and customer experience, simultaneously reducing our cost structure while investing for future growth."
Active customer numbers fell by -14.6% YoY, and the number of orders delivered fell by -6.7% YoY. AoV was unchanged.
