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Sep 30, 2022

Wayfair Q3 2022 Earnings Report

Wayfair's financial performance declined with a decrease in revenue and a net loss, but the company focused on cost efficiency and customer loyalty.

Key Takeaways

Wayfair reported a decrease in total net revenue to $2.8 billion, a net loss of $283 million, and a diluted loss per share of $2.66 for the third quarter of 2022. The company is focusing on cost efficiency and customer loyalty to achieve profitability and cash flow neutrality.

Total net revenue decreased by 9.0% year over year to $2.8 billion.

U.S. net revenue decreased by 6.0% year over year to $2.4 billion.

International net revenue decreased by 24.0% year over year to $0.4 billion.

The company is focused on driving cost efficiency and improving customer loyalty.

Total Revenue
$2.84B
Previous year: $3.12B
-9.0%
EPS
-$2.11
Previous year: $0.14
-1607.1%
Active Customers
22.6M
Previous year: 29.21M
-22.6%
LTM Net Revenue Per Customer
$547
Previous year: $484
+13.0%
Orders Delivered
8.7M
Previous year: 11.02M
-21.0%
Gross Profit
$824M
Previous year: $883M
-6.7%
Cash and Equivalents
$731M
Previous year: $1.86B
-60.8%
Free Cash Flow
-$538M
Previous year: -$203M
+164.8%
Total Assets
$3.65B
Previous year: $4.47B
-18.2%

Wayfair

Wayfair

Wayfair Revenue by Segment

Wayfair Revenue by Geographic Location

Forward Guidance

The company is focused on achieving adjusted EBITDA profitability and cash flow neutrality in the near term by driving cost efficiency, nailing the basics, and earning customer and supplier loyalty.

Positive Outlook

  • Continuing work to control the controllables.
  • Orienting Wayfair around driving cost efficiency.
  • Focusing on nailing the basics.
  • Aiming to earn customer loyalty every day.
  • Direct visibility to over half a billion dollars of savings.

Challenges Ahead

  • Macroeconomic factors, including the novel coronavirus (COVID-19) pandemic and the rise in inflation and interest rates
  • Inaccurate underlying assumptions
  • Known or unknown risks or uncertainties materialize
  • Actual results could vary materially from expectations and projections.
  • Forecasting the timing or amount of items that have not yet occurred and are out of our control is inherently uncertain and unavailable without unreasonable efforts

Revenue & Expenses

Visualization of income flow from segment revenue to net income