20 July 2024, 16:49
By Furniture News Nov 02, 2023

Wayfair looks to profitability and investment at close of Q3

Wayfair has reported a net revenue of $2.9b (up +3.7% YoY) and 22.3 million active customers (down -1.3% YoY), in its financial results for Q3 (ended 30th September, 2023).

This growth was chiefly derived from the online giant's US marketplace – international net revenue was $372m (down -7.0% YoY).

Gross profit was $917m (31.1% of total net revenue), yet the business suffered a net loss of $163m.

"Wayfair is now in a place where we can drive profitability while simultaneously investing for growth," says Niraj Shah, CEO, co-founder and co-chairman. "Q3 is one more proof point of exactly that – we're reporting positive adjusted EBITDA of $100m, a second consecutive quarter of positive free cash flow and nearly +4% YoY revenue growth driven by strength in orders. We also saw steady improvement in our active customer metric, which is well on its way to positive YoY growth.

"We executed further in the third quarter to produce consistent profitability – with adjusted EBITDA now positive on a trailing 12-month basis – while also driving demonstrable market share growth, as evidenced by our gains on customers and orders. Even with a turbulent macro, we remain committed to our profitability goals in good times and bad. We will continue to drive peerless focus and execution into 2024 and beyond, as we push every day to be the number-one shopping destination for the home."

While orders per customer remained broadly unchanged from year to year, orders delivered in the quarter increased by +13.8% YoY, and AOV was $297, compared to $325 in Q3 2022.

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