Wayfair Reports 20% Rise In Year-On-Year Q1 Sales

Wayfair Inc., one of the world’s largest online destinations for the home, today reported financial results for its first quarter ended March 31, 2020.

First Quarter 2020 Financial Highlights

• Total net revenue increased $385.2 million to $2.3 billion, up 19.8% year over year
• Direct Retail net revenue increased $391.4 million to $2.3 billion, up 20.3% year over year
• U.S. net revenue increased $317.3 million, up 19.1% year over year
• International net revenue increased $67.9 million, up 23.7% year over year. International segment Net Revenue Constant Currency Growth was 25.5%
• Gross profit was $579.1 million or 24.9% of total net revenue
• GAAP net loss was $285.9 million
• Non-GAAP Adjusted EBITDA and Adjusted EBITDA Margin was $(127.3) million or (5.5)%, respectively of total net revenue
• GAAP basic and diluted net loss per share was $3.04
• Non-GAAP Diluted Net Loss Per Share was $2.30
• Non-GAAP Free Cash Flow was $(354.6) million
• At the end of the first quarter, cash, cash equivalents, and short- and long-term investments totaled $891.0 million

"During this unprecedented time, we are working tirelessly to serve our customers across two continents. We are also working hard to help our communities with donations, emergency supply of goods, and logistics support. Both our frontline and corporate employees have adapted quickly and seamlessly to new processes and protocols to continue to serve strong demand, while keeping our customers, employees, and communities safe,” said Niraj Shah, CEO, co-founder and co-chairman, Wayfair. “The broader market disruption has highlighted the many differentiated advantages we have built as the e-commerce leader in Home over the last two decades. Millions of new shoppers have discovered Wayfair while they shelter in place at home, and we are seeing strong acceleration in new and repeat customer orders across almost all classes of goods and across all regions. In parallel, as we execute on the plans we set in motion late last year, we are making significant strides toward profitability by driving gross margin expansion, increasing marketing efficiencies, and gaining leverage on operating expenses. Our solid internal progress and healthy balance sheet put us in a position of strength in a highly dynamic environment. We remain confident in the success of our business as the shift of our category online accelerates and we continue to aggressively invest in our future.”

Other First Quarter Highlights

• The number of active customers in our Direct Retail business reached 21.1 million as of March 31, 2020, an increase of 28.6% year over year
• LTM net revenue per active customer was $449 as of March 31, 2020, an increase of 1.6% year over year
• Orders per customer, measured as LTM orders divided by active customers, was 1.86 for the first quarter of 2020, compared to 1.85 for the first quarter of 2019
• Repeat customers placed 69.8% of total orders in the first quarter of 2020, compared to 66.0% in the first quarter of 2019
• Repeat customers placed 6.9 million orders in the first quarter of 2020, an increase of 27.9% year over year
• Orders delivered in the first quarter of 2020 were 9.9 million, an increase of 21.0% year over year
• Average order value was $235 for the first quarter of 2020, compared to $237 for the first quarter of 2019
• In the first quarter of 2020, 54.8% of total orders delivered for our Direct Retail business were placed via a mobile device, compared to 53.4% in the first quarter of 2019

Wayfair generated $9.5 billion in net revenue for the twelve months ended March 31, 2020. Headquartered in Boston, Massachusetts with operations throughout North America and Europe, the company employs more than 15,900 people.

Source : Wayfair

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