Q2 Net Revenue of $3.1
billion with 22.0 million Active Customers
BOSTON, Aug. 1, 2024
/PRNewswire/ -- Wayfair Inc. ("Wayfair," "we," or "our") (NYSE: W),
one of the world's largest destinations for the home, today
reported financial results for its second quarter ended
June 30, 2024.
Second Quarter 2024 Financial Highlights
- Total net revenue of $3.1
billion, decreased $54
million, down 1.7% year over year
- U.S. net revenue of $2.7 billion,
decreased $55 million, down 2.0% year
over year
- International net revenue of $387
million, increased $1 million,
up 0.3% year over year. International Net Revenue Constant Currency
Growth was 1.3%
- Gross profit was $941 million, or
30.2% of total net revenue
- Net loss was $42 million and
Non-GAAP Adjusted EBITDA was $163
million
- Diluted loss per share was $0.34
and Non-GAAP Adjusted Diluted Earnings Per Share was $0.47
- Net cash provided by operating activities was $245 million and Non-GAAP Free Cash Flow was
$183 million
- Cash, cash equivalents and short-term investments totaled
$1.3 billion and total liquidity was
$1.9 billion, including availability
under our revolving credit facility
"Q2 was a dynamic quarter that resulted in another period of
share gain, amid continued macro headwinds that are pressuring the
ways customers are shopping the category. Customers remain cautious
in their spending on the home, and our credit card data suggests
that the category correction now mirrors the magnitude of the peak
to trough decline the home furnishing space experienced during the
great financial crisis," said Niraj
Shah, CEO, co-founder and co-chairman, Wayfair.
Shah continued, "Every action we've taken, every goal we've
prioritized, and every dollar we've spent has been considered under
the intense scrutiny of our high expectations for
return-on-investment. Even with the challenging macro, this was our
best quarter of Adjusted EBITDA and Free Cash Flow generation in
three years, clear evidence of our strict operating discipline. We
are running the business with the goal of demonstrating substantial
growth in profitability this year, even as the top line remains
challenging. And that will be our mindset every year going forward
as well."
Other Second Quarter Highlights
- Active customers totaled 22.0 million as of June 30, 2024, an increase of 0.9% year over
year
- LTM net revenue per active customer was $540 as of June 30,
2024, a decrease of 0.9% year over year
- Orders per customer, measured as LTM orders divided by active
customers, was 1.85 for the second quarter of 2024, compared to
1.82 for the second quarter of 2023
- Orders delivered in the second quarter of 2024 were 10.0
million, a decrease of 2.9% year over year
- Repeat customers placed 81.7% of total orders delivered in the
second quarter of 2024, compared to 80.1% in the second quarter of
2023
- Repeat customers placed 8.1 million orders in the second
quarter of 2024, a decrease of 2.4% year over year
- Average order value was $313 in
the second quarter of 2024, compared to $307 in the second quarter of 2023
- 63.7% of total orders delivered were placed via a mobile device
in the second quarter of 2024, compared to 61.6% in the second
quarter of 2023
Key Financial
Statement and Operating Metrics
|
|
|
|
|
|
|
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
|
|
|
|
|
|
|
|
|
|
(in millions, except
LTM net revenue per active customer, average order
value and per share data)
|
Key Financial
Statement Metrics:
|
|
|
|
|
|
|
|
|
Net revenue
|
|
$
3,117
|
|
$
3,171
|
|
$
5,846
|
|
$
5,945
|
Gross
profit
|
|
$
941
|
|
$
985
|
|
$
1,760
|
|
$
1,806
|
Loss from
operations
|
|
$
(35)
|
|
$
(142)
|
|
$
(270)
|
|
$
(489)
|
Net loss
|
|
$
(42)
|
|
$
(46)
|
|
$
(290)
|
|
$
(401)
|
Loss per
share:
|
|
|
|
|
|
|
|
|
Basic
|
|
$
(0.34)
|
|
$
(0.41)
|
|
$
(2.39)
|
|
$
(3.60)
|
Diluted
|
|
$
(0.34)
|
|
$
(0.41)
|
|
$
(2.39)
|
|
$
(3.60)
|
Net cash provided by
operating activities
|
|
$
245
|
|
$
217
|
|
$
106
|
|
$
70
|
Key Operating
Metrics:
|
|
|
|
|
|
|
|
|
Active customers
(1)
|
|
22
|
|
22
|
|
22
|
|
22
|
LTM net revenue per
active customer (2)
|
|
$
540
|
|
$
545
|
|
$
540
|
|
$
545
|
Orders delivered
(3)
|
|
10
|
|
10
|
|
20
|
|
20
|
Average order value
(4)
|
|
$
313
|
|
$
307
|
|
$
299
|
|
$
297
|
Non-GAAP Financial
Measures:
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
|
$
163
|
|
$
128
|
|
$
238
|
|
$
114
|
Free Cash
Flow
|
|
$
183
|
|
$
128
|
|
$
(10)
|
|
$
(106)
|
Adjusted Diluted
Earnings (Loss) per Share
|
|
$
0.47
|
|
$
0.21
|
|
$
0.16
|
|
$
(0.90)
|
|
|
(1)
|
The number of active
customers represents the total number of individual customers who
have purchased at least once directly from our sites during the
preceding twelve-month period. The change in active customers in a
reported period captures both the inflow of new customers as well
as the outflow of existing customers who have not made a purchase
in the last twelve months. We view the number of active customers
as a key indicator of our growth.
|
|
|
(2)
|
LTM net revenue per
active customer represents our total net revenue in the last twelve
months divided by our total number of active customers for the same
preceding twelve-month period. We view LTM net revenue per active
customer as a key indicator of our customers' purchasing patterns,
including their initial and repeat purchase behavior.
|
|
|
(3)
|
Orders delivered
represent the total orders delivered in any period, inclusive of
orders that may eventually be returned. As we ship a large volume
of packages through multiple carriers, actual delivery dates may
not always be available, and as such we estimate delivery dates
based on historical data. We recognize net revenue when an order is
delivered, and therefore orders delivered, together with average
order value, is an indicator of the net revenue we expect to
recognize in a given period. We view orders delivered as a key
indicator of our growth.
|
|
|
(4)
|
We define average order
value as total net revenue in a given period divided by the orders
delivered in that period. We view average order value as a key
indicator of the mix of products on our sites, the mix of offers
and promotions and the purchasing behavior of our
customers.
|
Webcast and Conference Call
Wayfair will host a conference call and webcast to discuss its
second quarter 2024 financial results today at 8 a.m. (ET).
Investors and participants should register for the call in advance
by visiting https://bit.ly/4exc4Dz. After registering, instructions
will be shared on how to join the call. The call will also be
available via live webcast at https://bit.ly/3KXgAxx. An archive of
the webcast conference call will be available shortly after the
call ends on Wayfair's Investor website at investor.wayfair.com.
Important information may be disseminated initially or exclusively
via the Investor website; investors should consult the site to
access this information.
About Wayfair
Wayfair is the destination for all things home, in one inspiring
place. With quality finds for every style and budget, and a
convenient experience from inspiration to installation, Wayfair
empowers everyone, everywhere to create a space that is just right
for them.
The Wayfair family of brands includes:
- Wayfair: Every style. Every home.
- AllModern: All of modern, made simple.
- Birch Lane: Classic style for joyful living.
- Joss & Main: The ultimate style edit for
home.
- Perigold: The destination for luxury home.
- Wayfair Professional: A one-stop Pro shop.
Wayfair generated $11.9 billion in net revenue for the twelve
months ended June 30, 2024 and is headquartered in
Boston, Massachusetts with global
operations.
Media Relations Contact:
Tara
Lambropoulos
PR@wayfair.com
Investor Relations Contact:
James Lamb
IR@wayfair.com
Forward-Looking Statements
This press release contains forward-looking statements within
the meaning of federal and state securities laws. All statements
other than statements of historical fact contained in this press
release, including statements regarding our investment plans and
anticipated returns on those investments, our future customer
growth, our future results of operations and financial position,
including our financial outlook, profitability goals, business
strategy, plans and objectives of management for future operations,
and, the impact of macroeconomic events and our response to such
events, are forward-looking statements. In some cases, you can
identify forward-looking statements by terms such as "may," "will,"
"should," "expects," "plans," "anticipates," "continues," "could,"
"intends," "goals," "target," "projects," "contemplates,"
"believes," "estimates," "predicts," "potential," or the negative
of these terms or other similar expressions.
Forward-looking statements are based on current expectations of
future events. We cannot guarantee that any forward-looking
statement will be accurate, although we believe that we have been
reasonable in our expectations and assumptions. Investors should
realize that if underlying assumptions prove inaccurate or that
known or unknown risks or uncertainties materialize, actual results
could vary materially from our expectations and projections.
Investors are therefore cautioned not to place undue reliance on
any forward-looking statements. We believe that these risks and
uncertainties include, but are not limited to, adverse
macroeconomic conditions, including rising and fluctuating interest
rates and inflation, slower growth or the potential for recession,
disruptions in the global supply chain, conditions affecting the
retail environment for products we sell, and other matters that
influence consumer spending and preferences, as well as our ability
to plan for and respond to the impact of these conditions; our
ability to acquire and retain customers in a cost-effective manner;
our ability to increase our net revenue per active customer; our
ability to build and maintain strong brands; our ability to manage
our growth and expansion initiatives; and our ability to expand our
business and compete successfully. A further list and description
of risks, uncertainties and other factors that could cause or
contribute to differences in our future results include the
cautionary statements herein and in our most recent Annual Report
on Form 10-K and in our other filings and reports with the
Securities and Exchange Commission. We qualify all of our
forward-looking statements by these cautionary statements.
These forward-looking statements speak only as of the date of
this press release and, except as required by applicable law, we
undertake no obligation to publicly update or revise any
forward-looking statements contained herein, whether as a result of
any new information, future events or otherwise.
WAYFAIR
INC.
CONDENSED
CONSOLIDATED BALANCE SHEETS
(Unaudited)
|
|
|
|
|
|
|
|
June
30,
|
|
December
31,
|
|
|
2024
|
|
2023
|
|
|
|
|
|
|
|
(in millions, except
share and per
share data)
|
Assets:
|
|
|
|
|
Current
assets
|
|
|
|
|
Cash and cash
equivalents
|
|
$
1,304
|
|
$
1,322
|
Short-term
investments
|
|
39
|
|
29
|
Accounts receivable,
net
|
|
161
|
|
140
|
Inventories
|
|
78
|
|
75
|
Prepaid expenses and
other current assets
|
|
240
|
|
289
|
Total current
assets
|
|
1,822
|
|
1,855
|
Operating lease
right-of-use assets
|
|
880
|
|
820
|
Property and equipment,
net
|
|
680
|
|
748
|
Other non-current
assets
|
|
54
|
|
51
|
Total
assets
|
|
$
3,436
|
|
$
3,474
|
Liabilities and
Stockholders' Deficit:
|
|
|
|
|
Current
liabilities
|
|
|
|
|
Accounts
payable
|
|
$
1,168
|
|
$
1,234
|
Other current
liabilities
|
|
1,039
|
|
949
|
Total current
liabilities
|
|
2,207
|
|
2,183
|
Long-term
debt
|
|
3,059
|
|
3,092
|
Operating lease
liabilities, net of current
|
|
893
|
|
862
|
Other non-current
liabilities
|
|
37
|
|
44
|
Total
liabilities
|
|
6,196
|
|
6,181
|
Stockholders'
deficit:
|
|
|
|
|
Convertible preferred
stock, $0.001 par value per share: 10,000,000 shares authorized
and
none issued at June 30, 2024 and December 31,
2023
|
|
—
|
|
—
|
Class A common
stock, par value $0.001 per share, 500,000,000 shares
authorized,
96,351,994 and 92,457,562 shares issued and outstanding at
June 30, 2024 and
December 31, 2023, respectively
|
|
—
|
|
—
|
Class B common
stock, par value $0.001 per share, 164,000,000 shares
authorized,
25,691,295 shares issued and outstanding at June 30, 2024 and
December 31, 2023
|
|
—
|
|
—
|
Additional paid-in
capital
|
|
1,552
|
|
1,316
|
Accumulated
deficit
|
|
(4,308)
|
|
(4,018)
|
Accumulated other
comprehensive loss
|
|
(4)
|
|
(5)
|
Total stockholders'
deficit
|
|
(2,760)
|
|
(2,707)
|
Total liabilities and
stockholders' deficit
|
|
$
3,436
|
|
$
3,474
|
WAYFAIR
INC.
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
|
|
|
|
|
|
|
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
|
|
|
|
|
|
|
|
|
|
(in millions, except
per share data)
|
Net revenue
(1)
|
|
$
3,117
|
|
$
3,171
|
|
$
5,846
|
|
$
5,945
|
Cost of goods sold
(2)
|
|
2,176
|
|
2,186
|
|
4,086
|
|
4,139
|
Gross profit
|
|
941
|
|
985
|
|
1,760
|
|
1,806
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
Customer service and
merchant fees (2)
|
|
121
|
|
144
|
|
238
|
|
283
|
Advertising
|
|
365
|
|
352
|
|
689
|
|
679
|
Selling, operations,
technology, general and administrative (2)
|
|
489
|
|
630
|
|
1,023
|
|
1,254
|
Impairment and other
related net charges
|
|
1
|
|
1
|
|
1
|
|
14
|
Restructuring
charges
|
|
—
|
|
—
|
|
79
|
|
65
|
Total operating
expenses
|
|
976
|
|
1,127
|
|
2,030
|
|
2,295
|
Loss from
operations
|
|
(35)
|
|
(142)
|
|
(270)
|
|
(489)
|
Interest expense,
net
|
|
(4)
|
|
(5)
|
|
(10)
|
|
(10)
|
Other (expense)
income, net
|
|
(1)
|
|
3
|
|
(5)
|
|
2
|
Gain on debt
extinguishment
|
|
—
|
|
100
|
|
—
|
|
100
|
Loss before income
taxes
|
|
(40)
|
|
(44)
|
|
(285)
|
|
(397)
|
Provision for income
taxes, net
|
|
2
|
|
2
|
|
5
|
|
4
|
Net loss
|
|
$
(42)
|
|
$
(46)
|
|
$
(290)
|
|
$
(401)
|
Loss per
share:
|
|
|
|
|
|
|
|
|
Basic
|
|
$
(0.34)
|
|
$
(0.41)
|
|
$
(2.39)
|
|
$
(3.60)
|
Diluted
|
|
$
(0.34)
|
|
$
(0.41)
|
|
$
(2.39)
|
|
$
(3.60)
|
Weighted-average number
of shares of common stock
outstanding used in computing per share amounts:
|
|
|
|
|
|
|
|
|
Basic
|
|
122
|
|
112
|
|
121
|
|
111
|
Diluted
|
|
122
|
|
112
|
|
121
|
|
111
|
(1) The
following tables present net revenue attributable to our reportable
segments for the periods indicated:
|
|
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
|
|
|
|
|
|
|
|
|
|
(in
millions)
|
U.S. net
revenue
|
|
$
2,730
|
|
$
2,785
|
|
$
5,121
|
|
$
5,200
|
International net
revenue
|
|
387
|
|
386
|
|
725
|
|
745
|
Total net
revenue
|
|
$
3,117
|
|
$
3,171
|
|
$
5,846
|
|
$
5,945
|
(2) Includes
equity-based compensation and related taxes as follows:
|
|
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
|
|
|
|
|
|
|
|
|
|
(in
millions)
|
Cost of goods
sold
|
|
$
3
|
|
$
2
|
|
$
6
|
|
$
5
|
Customer service and
merchant fees
|
|
5
|
|
8
|
|
11
|
|
16
|
Selling, operations,
technology, general and administrative
|
|
90
|
|
157
|
|
208
|
|
297
|
Total equity-based
compensation and related taxes
|
|
$
98
|
|
$
167
|
|
$
225
|
|
$
318
|
WAYFAIR
INC.
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
|
|
|
|
|
|
Six Months Ended
June 30,
|
|
|
2024
|
|
2023
|
|
|
|
|
|
|
|
(in
millions)
|
Cash flows from
operating activities:
|
|
|
|
|
Net loss
|
|
$
(290)
|
|
$
(401)
|
Adjustments to
reconcile net loss to net cash provided by operating
activities:
|
|
|
|
|
Depreciation and
amortization
|
|
203
|
|
206
|
Equity-based
compensation expense
|
|
214
|
|
308
|
Amortization of
discount and issuance costs on convertible notes
|
|
5
|
|
3
|
Impairment and other
related net charges
|
|
1
|
|
14
|
Gain on debt
extinguishment
|
|
—
|
|
(100)
|
Other non-cash
adjustments
|
|
(8)
|
|
(3)
|
Changes in operating
assets and liabilities:
|
|
|
|
|
Accounts receivable,
net
|
|
(37)
|
|
144
|
Inventories
|
|
(4)
|
|
13
|
Prepaid expenses and
other assets
|
|
11
|
|
(8)
|
Accounts payable and
other liabilities
|
|
11
|
|
(106)
|
Net cash provided by
operating activities
|
|
106
|
|
70
|
|
|
|
|
|
Cash flows (for)
from investing activities:
|
|
|
|
|
Purchase of short- and
long-term investments
|
|
(38)
|
|
—
|
Sale and maturities of
short- and long-term investments
|
|
27
|
|
225
|
Purchase of property
and equipment
|
|
(36)
|
|
(71)
|
Site and software
development costs
|
|
(80)
|
|
(105)
|
Net cash (used in)
provided by investing activities
|
|
(127)
|
|
49
|
|
|
|
|
|
Cash flows from
financing activities:
|
|
|
|
|
Proceeds from issuance
of convertible notes, net of issuance costs
|
|
—
|
|
678
|
Premiums paid for
capped call confirmations
|
|
—
|
|
(87)
|
Payments to extinguish
convertible debt
|
|
—
|
|
(514)
|
Other financing
activities, net
|
|
3
|
|
—
|
Net cash provided by
financing activities
|
|
3
|
|
77
|
Effect of exchange
rate changes on cash, cash equivalents and restricted
cash
|
|
—
|
|
3
|
Net (decrease)
increase in cash, cash equivalents and restricted cash
|
|
(18)
|
|
199
|
|
|
|
|
|
Cash, cash
equivalents and restricted cash
|
|
|
|
|
Beginning of
period
|
|
$
1,326
|
|
$
1,050
|
End of
period
|
|
$
1,308
|
|
$
1,249
|
Non-GAAP Financial Measures
To supplement our condensed consolidated financial statements
presented in accordance with generally accepted accounting
principles ("GAAP"), this earnings release and the accompanying
tables and the related earnings conference call contain certain
non-GAAP financial measures, including Adjusted EBITDA, Adjusted
EBITDA Margin, Free Cash Flow, Adjusted Diluted Earnings or Loss
per Share and Net Revenue Constant Currency Growth. We use these
non-GAAP financial measures internally in analyzing our financial
results and believe they are useful to investors, as a supplement
to GAAP measures, in evaluating our ongoing operational
performance. We have provided a reconciliation of these non-GAAP
financial measures to the most directly comparable GAAP financial
measure in this earnings release.
We calculate Adjusted EBITDA as net income or loss before
depreciation and amortization, equity-based compensation and
related taxes, interest income or expense, net, other income or
expense, net, provision or benefit for income taxes, net,
non-recurring items and other items not indicative of our ongoing
operating performance. Adjusted EBITDA Margin is calculated by
dividing Adjusted EBITDA by Net Revenue. We disclose Adjusted
EBITDA because it is a key measure used by our management and board
of directors to evaluate our operating performance, generate future
operating plans and make strategic decisions regarding the
allocation of capital. In particular, we believe the exclusion of
certain expenses in calculating Adjusted EBITDA facilitates
operating performance comparisons on a period-to-period basis as
these costs may vary independent of business performance. For
instance, we exclude the impact of equity-based compensation and
related taxes as we do not consider this item to be indicative of
our core operating performance. Investors should, however,
understand that equity-based compensation and related taxes will be
a significant recurring expense in our business and an important
part of the compensation provided to our employees. Accordingly, we
believe that Adjusted EBITDA provides useful information to
investors and others in understanding and evaluating our operating
results in the same manner as our management and board of
directors.
We calculate Free Cash Flow as net cash provided by or used in
operating activities less net cash used to purchase property and
equipment and site and software development costs (collectively,
"Capital Expenditures"). We disclose Free Cash Flow because it is
an important indicator of our business performance as it measures
the amount of cash we generate. Accordingly, we believe that Free
Cash Flow provides useful information to investors and others in
understanding and evaluating our operating results in the same
manner as our management.
We calculate Adjusted Diluted Earnings or Loss per Share as net
income or loss plus equity-based compensation and related taxes,
provision or benefit for income taxes, net, non-recurring items,
other items not indicative of our ongoing operating performance,
and, if dilutive, interest expense associated with convertible debt
instruments under the if-converted method divided by the
weighted-average number of shares of common stock used in the
computation of diluted earnings or loss per share. Accordingly, we
believe that these adjustments to our adjusted diluted net income
or loss before calculating per share amounts for all periods
presented provide a more meaningful comparison between our
operating results from period to period.
We calculate Net Revenue Constant Currency Growth by translating
the current period local currency net revenue by the currency
exchange rates used to translate the financial statements in the
comparable prior-year period. We disclose Net Revenue Constant
Currency Growth because it is an important indicator of our
operating results. Accordingly, we believe that Net Revenue
Constant Currency Growth provides useful information to investors
and others in understanding and evaluating trends in our operating
results in the same manner as our management.
We calculate forward-looking non-GAAP financial measures based
on internal forecasts that omit certain amounts that would be
included in forward-looking GAAP financial measures. We
do not attempt to provide a reconciliation of
forward-looking non-GAAP financial measures to forward
looking GAAP financial measures because 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. Further, we believe that such reconciliations
would imply a degree of precision and certainty that could be
confusing to investors. Such items could have a substantial impact
on GAAP measures of financial performance.
The non-GAAP financial measures have limitations as analytical
tools. We do not, nor do we suggest that investors should consider
such non-GAAP financial measures in isolation from, or as a
substitute for, financial information prepared in accordance with
GAAP. Investors should also note that the non-GAAP financial
measures we use may not be the same non-GAAP financial measures and
may not be calculated in the same manner as that of other
companies, including other companies in our industry.
The following table reflects the reconciliation of net income or
loss to Adjusted EBITDA and Adjusted EBITDA margin for each of the
periods indicated:
|
|
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in
millions)
|
Reconciliation of
Adjusted EBITDA:
|
|
|
|
|
|
|
|
|
Net loss
|
|
$
(42)
|
|
$
(46)
|
|
$
(290)
|
|
$
(401)
|
Depreciation and
amortization
|
|
99
|
|
102
|
|
203
|
|
206
|
Equity-based
compensation and related taxes
|
|
98
|
|
167
|
|
225
|
|
318
|
Interest expense,
net
|
|
4
|
|
5
|
|
10
|
|
10
|
Other expense
(income), net
|
|
1
|
|
(3)
|
|
5
|
|
(2)
|
Provision for income
taxes, net
|
|
2
|
|
2
|
|
5
|
|
4
|
Other:
|
|
|
|
|
|
|
|
|
Impairment and other
related net charges (1)
|
|
1
|
|
1
|
|
1
|
|
14
|
Restructuring charges
(2)
|
|
—
|
|
—
|
|
79
|
|
65
|
Gain on debt
extinguishment (3)
|
|
—
|
|
(100)
|
|
—
|
|
(100)
|
Adjusted
EBITDA
|
|
$
163
|
|
$
128
|
|
$
238
|
|
$
114
|
|
|
|
|
|
|
|
|
|
|
Net revenue
|
|
$
3,117
|
|
$
3,171
|
|
$
5,846
|
|
$
5,945
|
Net loss
margin
|
|
(1.3) %
|
|
(1.5) %
|
|
(5.0) %
|
|
(6.7) %
|
Adjusted EBITDA
Margin
|
|
5.2 %
|
|
4.0 %
|
|
4.1 %
|
|
1.9 %
|
|
|
|
|
(1)
|
During the three and
six months ended June 30, 2024, we recorded charges of $1
million related to changes in sublease market conditions for an
identified U.S. office location. During the six months ended
June 30, 2023, we recorded charges of $5 million related to
consolidation of certain customer service centers in identified
U.S. locations. During the three and six months ended June 30,
2023, we recorded charges of $1 million and $9 million,
respectively, related to construction in progress assets at
identified U.S. locations.
|
|
|
|
|
(2)
|
During the six months
ended June 30, 2024, we incurred $79 million of charges
consisting primarily of one-time employee severance and benefit
costs associated with the January 2024 workforce reductions. During
the six months ended June 30, 2023, we incurred
$65 million of charges consisting primarily of one-time
employee severance and benefit costs associated with the January
2023 workforce reductions.
|
|
|
|
|
(3)
|
During the three and
six months ended June 30, 2023, we recorded a $100 million
gain on debt extinguishment upon repurchase of $83 million in
aggregate principal amount of our 2024 Notes and $535 million
in aggregate principal amount of our 2025 Notes.
|
The following table presents Adjusted EBITDA attributable to our
segments, and the reconciliation of net income or loss to Adjusted
EBITDA is presented in the preceding table:
|
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
|
|
|
|
|
|
|
|
|
|
(in
millions)
|
Segment Adjusted
EBITDA:
|
|
|
|
|
|
|
|
|
U.S.
|
|
$
199
|
|
$
161
|
|
$
320
|
|
$
190
|
International
|
|
(36)
|
|
(33)
|
|
(82)
|
|
(76)
|
Adjusted
EBITDA
|
|
$
163
|
|
$
128
|
|
$
238
|
|
$
114
|
The following table presents a reconciliation of net cash
provided by or used in operating activities to Free Cash Flow for
each of the periods indicated:
|
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
|
|
|
|
|
|
|
|
|
|
(in
millions)
|
Net cash provided by
operating activities
|
|
$
245
|
|
$
217
|
|
$
106
|
|
$
70
|
Purchase of property
and equipment
|
|
(23)
|
|
(37)
|
|
(36)
|
|
(71)
|
Site and software
development costs
|
|
(39)
|
|
(52)
|
|
(80)
|
|
(105)
|
Free Cash
Flow
|
|
$
183
|
|
$
128
|
|
$
(10)
|
|
$
(106)
|
A reconciliation of the numerator and denominator for diluted
earnings or loss per share, the most directly comparable GAAP
financial measure, to the numerator and denominator for Adjusted
Diluted Earnings or Loss per Share, in order to calculate Adjusted
Diluted Earnings or Loss per Share is as follows:
|
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
|
|
|
|
|
|
|
|
|
|
(in millions, except
per share data)
|
Numerator:
|
|
|
|
|
|
|
|
|
Numerator for basic and
diluted loss per share - net loss
|
|
$
(42)
|
|
$
(46)
|
|
$
(290)
|
|
$
(401)
|
Adjustments to net
loss
|
|
|
|
|
|
|
|
|
Interest expense
associated with convertible debt instruments
|
|
10
|
|
—
|
|
—
|
|
—
|
Equity-based
compensation and related taxes
|
|
98
|
|
167
|
|
225
|
|
318
|
Provision for income
taxes, net
|
|
2
|
|
2
|
|
5
|
|
4
|
Other:
|
|
|
|
|
|
|
|
|
Impairment and other
related net charges
|
|
1
|
|
1
|
|
1
|
|
14
|
Restructuring
charges
|
|
—
|
|
—
|
|
79
|
|
65
|
Gain on debt
extinguishment
|
|
—
|
|
(100)
|
|
—
|
|
(100)
|
Numerator for Adjusted
Diluted Earnings (Loss) per
Share - Adjusted net income (loss)
|
|
$
69
|
|
$
24
|
|
$
20
|
|
$
(100)
|
|
|
|
|
|
|
|
|
|
Denominator:
|
|
|
|
|
|
|
|
|
Denominator for basic
and diluted loss per share -
weighted-average number of shares of common stock
outstanding
|
|
122
|
|
112
|
|
121
|
|
111
|
Adjustments to
effect of dilutive securities:
|
|
|
|
|
|
|
|
|
Restricted stock
units
|
|
—
|
|
1
|
|
1
|
|
—
|
Convertible debt
instruments
|
|
22
|
|
—
|
|
—
|
|
—
|
Denominator for
Adjusted Diluted Earnings (Loss) per
Share - Adjusted weighted-average number of shares
of common stock outstanding after the effect of
dilutive securities
|
|
144
|
|
113
|
|
122
|
|
111
|
Diluted Loss per
Share
|
|
$
(0.34)
|
|
$
(0.41)
|
|
$
(2.39)
|
|
$
(3.60)
|
Adjusted Diluted
Earnings (Loss) per Share
|
|
$
0.47
|
|
$
0.21
|
|
$
0.16
|
|
$
(0.90)
|
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SOURCE Wayfair Inc.