Wayfair Reports Net Loss of $182m

Last week, Wayfair Inc., one of the world’s largest online destinations for the home, reported financial results for its second quarter ended June 30, 2019.

The company reported direct retail net revenue growth of 42% year-on-year, to $2.3 billion, and 17.8 million active customers, up 39% year-on-year.

Second Quarter 2019 Financial Highlights

• Direct Retail net revenue, consisting of sales generated primarily through Wayfair’s sites, increased $690.8 million to $2.3 billion, up 42.1% year over year
• Gross profit was $559.6 million or 23.9% of total net revenue
• GAAP net loss was $181.9 million
• Adjusted EBITDA was $(70.0) million or (3.0)% of total net revenue
• GAAP basic and diluted net loss per share was $1.98
• Non-GAAP diluted net loss per share was $1.35
• Non-GAAP free cash flow was $(91.5) million
• At the end of the second quarter, cash, cash equivalents, and short-term and long-term investments totaled $714.5 million 

“We are very pleased to report another strong quarter with Direct Retail net revenue up $691 million, an increase of 42 percent year over year,” said Niraj Shah, CEO, co-founder and co-chairman, Wayfair. “In addition to a successful second annual Way Day, we are seeing our investments across the business drive greater and greater value to our suppliers and customers. As we continue to strengthen our global logistics network through the addition of Castlegate warehouses and last mile delivery facilities, we are driving cost efficiencies and building an unparalleled experience for our customers with even faster delivery. We look forward to building on this tremendous momentum as we continue to scale our operations and capture an out-sized share of the consumer spending moving online in our market segment.”

Other Second Quarter Highlights

• The number of active customers in our Direct Retail business reached 17.8 million as of June 30, 2019, an increase of 39.1% year over year
• LTM net revenue per active customer was $447 as of June 30, 2019, an increase of 1.6% year over year
• Orders per customer, measured as LTM orders divided by active customers, was 1.86 for the second quarter of 2019, compared to 1.82 for the second quarter of 2018
• Repeat customers placed 67.8% of total orders in the second quarter of 2019, compared to 66.0% in the second quarter of 2018
• Repeat customers placed 6.2 million orders in the second quarter of 2019, an increase of 46.1% year over year
• Orders delivered in the second quarter of 2019 were 9.2 million, an increase of 42.0% year over year
• Average order value was $255 for the second quarter of 2019, compared to $254 for the second quarter of 2018
• In the second quarter of 2019, 53.5% of total orders delivered for our Direct Retail business were placed via a mobile device, compared to 49.2% in the second quarter of 2018

Source : Insight DIY Team and Wayfair Inc.

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