Wayfair's third-quarter losses narrowed as orders grew strongly by 13.8%

It is learned that on November 1, American home furnishing e-commerce Wayfair announced its third-quarter financial results ending September 30. The financial report shows that Wayfair's losses narrowed in the third quarter and the order volume showed strong growth.

2023 Third Quarter Financial Highlights

Total revenue was $2.9 billion, an increase of $104 million and 3.7% year-over-year.

Revenue from the U.S. market was $2.6 billion, an increase of $132 million from the same period last year, a year-on-year increase of 5.4%.

International market revenue was US$372 million, a decrease of US$280 million from the same period last year, a year-on-year decrease of 7.0%.

Gross profit was $917 million, accounting for 31.1% of total net revenue

Net loss was $163 million and non-GAAP adjusted EBITDA was $100 million, down from a loss of $283 million in the same period last year

Diluted loss per share was $1.40 and non-GAAP adjusted diluted net loss per share was $0.13

Operating cash flow was $121 million and non-GAAP free cash flow was $420 million

Cash, cash equivalents and short-term investments totaled $1.3 billion and total liquidity was $1.8 billion

Other highlights in the third quarter of 2023

As of September 30, 2023, the total number of active customers was 22.3 million, a year-on-year decrease of 1.3%

LTM net revenue per active customer is $538 as of September 30, 2023, down 1.6% year-over-year

The number of orders per customer (calculated by dividing the number of orders in the last 12 months by active customers) was 1.83 in the third quarter, an increase from 1.82 in the third quarter of 2022

The number of orders for delivery in the third quarter of 2023 was 9.9 million, an increase of 13.8% year-on-year

In the third quarter of 2023, orders placed by returning customers accounted for 79.7% of total orders, an increase from 77.8% in the third quarter of 2022

In the third quarter of 2023, repeat customers placed 7.9 million orders, a year-on-year increase of 16.2%

In the third quarter of 2023, the average order value was $297, down from $325 in the third quarter of 2022.

In the third quarter of 2023, 61.7% of total orders were placed via mobile devices, an increase from 58.6% in the third quarter of 2022.

Wayfair stressed that the decline in average order value does not mean that customers are buying less, and that significant drops in shipping and raw material costs over the past year have led wholesalers to charge Wayfair less for furniture and home goods.

"We continued to be profitable in the third quarter, with adjusted EBITDA up significantly from the previous quarter and significant market share gains," said Niraj Shah, co-founder and CEO of Wayfair. "We remain committed to our profitability goals even in a turbulent macro environment."

Wayfair has been focusing on cost control to improve profitability and protect its profit margins as demand for home furnishings and other non-essential categories remains tepid.

Wayfair froze hiring in May last year. In January this year, it also laid off about 10% of its employees, or about 1,750 employees. Thanks to these cost-cutting and efficiency-enhancing measures, Wayfair's losses have gradually narrowed and its profit margins have improved.

Editor ✎ Nicole/

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