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Wayfair Q3 Earnings Beat Estimates, Revenues Down Y/Y
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Wayfair (W - Free Report) reported third-quarter 2024 non-GAAP earnings of 22 cents per share, beating the Zacks Consensus Estimate by 46.67%. The company reported a loss of 13 cents per share in the year-ago quarter.
Net revenues of $2.88 billion beat the consensus mark by 0.04%. The top line decreased 2% year over year.
Last Twelve Months (LTM) net revenues per active customer decreased 1.3% year over year to $545, which beat the Zacks Consensus Estimate by 5.17%.
Further, the active customer base declined. The metric decreased 2.7% year over year to 21.7 million and missed the consensus mark by 4.51%.
Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.
Net revenues in the United States (87.1% of total net revenues) decreased 2.33% year over year to $2.51 billion. The figure missed the Zacks Consensus Estimate by 0.34%.
International net revenues (12.9% of total net revenues) remained flat year over year and on a constant currency basis to $372 million. The number beat the consensus mark by 2.76%.
Orders per customer for the quarter were 1.85, up from 1.83 reported in the year-ago quarter. The figure beat the Zacks Consensus Estimate by 3.12%.
The average order value increased from $297 year over year to $310, which beat the consensus mark by 4.36%.
The total number of delivered orders in the reported quarter was 9.3 million, which decreased 6.1% year over year.
Repeat customers placed 7.4 million orders (accounting for 79.9% of total orders) in the third quarter, down 6.3% year over year.
Additionally, 63% of total delivered orders were placed through mobile devices in the reported quarter compared with 61.7% in the year-ago quarter.
Operating Results of Wayfair
Wayfair’s third-quarter gross margin was 30.27% compared with 31.15% in the year-ago quarter.
Adjusted EBITDA was $119 million, up from $100 million in the year-ago quarter.
Customer service and merchant fees decreased 17.6% year over year to $112 million.
Advertising expenses increased 5% year over year to $354 million. Selling, operations, technology and general and administrative expenses decreased 19.4% year over year to $480 million.
Wayfair incurred a GAAP operating loss of $74 million in the reported quarter compared with an operating loss of $163 million in the year-ago quarter.
Balance Sheet & Cash Flow of Wayfair
As of Sept. 30, 2024, cash, cash equivalents and short-term investments were $1.3 billion, down from $1.34 billion reported on June 30, 2024.
Long-term debt, as of Sept. 30, 2024, was $3.061 billion compared with $3.059 billion on June 30, 2024.
In the third quarter, cash from operations amounted to $49 million compared with $245 million used in operations in the second quarter.
Wayfair reported a negative free cash flow of $9 million in the third quarter.
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Wayfair Q3 Earnings Beat Estimates, Revenues Down Y/Y
Wayfair (W - Free Report) reported third-quarter 2024 non-GAAP earnings of 22 cents per share, beating the Zacks Consensus Estimate by 46.67%. The company reported a loss of 13 cents per share in the year-ago quarter.
Net revenues of $2.88 billion beat the consensus mark by 0.04%. The top line decreased 2% year over year.
Last Twelve Months (LTM) net revenues per active customer decreased 1.3% year over year to $545, which beat the Zacks Consensus Estimate by 5.17%.
Further, the active customer base declined. The metric decreased 2.7% year over year to 21.7 million and missed the consensus mark by 4.51%.
Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.
Wayfair Inc. Price, Consensus and EPS Surprise
Wayfair Inc. price-consensus-eps-surprise-chart | Wayfair Inc. Quote
Wayfair’s Q3 in Details
Net revenues in the United States (87.1% of total net revenues) decreased 2.33% year over year to $2.51 billion. The figure missed the Zacks Consensus Estimate by 0.34%.
International net revenues (12.9% of total net revenues) remained flat year over year and on a constant currency basis to $372 million. The number beat the consensus mark by 2.76%.
Orders per customer for the quarter were 1.85, up from 1.83 reported in the year-ago quarter. The figure beat the Zacks Consensus Estimate by 3.12%.
The average order value increased from $297 year over year to $310, which beat the consensus mark by 4.36%.
The total number of delivered orders in the reported quarter was 9.3 million, which decreased 6.1% year over year.
Repeat customers placed 7.4 million orders (accounting for 79.9% of total orders) in the third quarter, down 6.3% year over year.
Additionally, 63% of total delivered orders were placed through mobile devices in the reported quarter compared with 61.7% in the year-ago quarter.
Operating Results of Wayfair
Wayfair’s third-quarter gross margin was 30.27% compared with 31.15% in the year-ago quarter.
Adjusted EBITDA was $119 million, up from $100 million in the year-ago quarter.
Customer service and merchant fees decreased 17.6% year over year to $112 million.
Advertising expenses increased 5% year over year to $354 million. Selling, operations, technology and general and administrative expenses decreased 19.4% year over year to $480 million.
Wayfair incurred a GAAP operating loss of $74 million in the reported quarter compared with an operating loss of $163 million in the year-ago quarter.
Balance Sheet & Cash Flow of Wayfair
As of Sept. 30, 2024, cash, cash equivalents and short-term investments were $1.3 billion, down from $1.34 billion reported on June 30, 2024.
Long-term debt, as of Sept. 30, 2024, was $3.061 billion compared with $3.059 billion on June 30, 2024.
In the third quarter, cash from operations amounted to $49 million compared with $245 million used in operations in the second quarter.
Wayfair reported a negative free cash flow of $9 million in the third quarter.
Zacks Rank & Stocks to Consider
Currently, Wayfair has a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader retail-wholesale sector are Alibaba (BABA - Free Report) , Gap (GAP - Free Report) and Walmart (WMT - Free Report) . While The Gap and Walmart have a Zacks Rank #2 (Buy), Alibaba sports a Zacks Rank #1 (Strong buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Alibaba (BABA - Free Report) has gained 25.9% in the year-to-date period. BABA is slated to report its third-quarter 2024 results on Nov. 15.
Shares of Gap have declined 0.8% in the year-to-date period. GAP is set to report its third-quarter 2024 results on Nov. 21.
Walmart has gained 56.5% in the year-to-date period. WMT is slated to report its third-quarter fiscal 2025 results on Nov. 19.