Wayfair (W) Misses Q4 EPS by 15c, Revenues In-Line

Wayfair (NYSE: W) reported Q4 EPS of ($2.80), $0.15 worse than the analyst estimate of ($2.65). Revenue for the quarter came in at $2.53 billion versus the consensus estimate of $2.53 billion.

Wayfair (NYSE: W) Sees 1Q Net Revenue $2.235B-$2.275B, versus the consensus of $2.47 billion.

Fourth Quarter 2019 Financial Highlights

• Total net revenue increased $519.5 million to $2.5 billion, up 25.8% year over year
• Direct Retail net revenue increased $529.8 million to $2.5 billion, up 26.5% year over year
• U.S. net revenue increased $413.1 million, up 23.9% year over year
• International net revenue increased $106.4 million, up 37.1% year over year. International segment Net Revenue Constant Currency Growth was 37.3%
• Gross profit was $577.4 million or 22.8% of total net revenue
• GAAP net loss was $330.2 million
• Non-GAAP Adjusted EBITDA and Adjusted EBITDA Margin was $(180.2) million or (7.1)%, respectively of total net revenue
• GAAP basic and diluted net loss per share was $3.54
• Non-GAAP Diluted Net Loss Per Share was $2.80
• Non-GAAP Free Cash Flow was $(158.5) million
• At the end of the fourth quarter, cash, cash equivalents, and short- and long-term investments totaled $1.1 billion

Other Fourth Quarter Highlights

• The number of active customers in our Direct Retail business reached 20.3 million as of December 31, 2019, an increase of 33.9% year over year
• LTM net revenue per active customer was $448 as of December 31, 2019, an increase of 1.1% year over year
• Orders per customer, measured as LTM orders divided by active customers, was 1.86 for the fourth quarter of 2019, compared to 1.85 for the fourth quarter of 2018
• Repeat customers placed 68.6% of total orders in the fourth quarter of 2019, compared to 66.4% in the fourth quarter of 2018
• Repeat customers placed 7.7 million orders in the fourth quarter of 2019, an increase of 31.3% year over year
• Orders delivered in the fourth quarter of 2019 were 11.2 million, an increase of 27.1% year over year
• Average order value was $226 for the fourth quarter of 2019, compared to $227 for the fourth quarter of 2018
• In the fourth quarter of 2019, 54.8% of total orders delivered for our Direct Retail business were placed via a mobile device, compared to 51.8% in the fourth quarter of 2018

“We are pleased to close out another year of significant growth with net revenue up 35% year over year in 2019, as our loyal and growing customer base continues to choose Wayfair as the preferred place to shop for home,” said Niraj Shah, CEO, co-founder and co-chairman, Wayfair. “While already operating at a run rate in excess of $10 billion in annual net revenue, we have barely scratched the surface of our total addressable market and are only just beginning to reap the benefits of our large strategic investments across North America and Europe. To take advantage of the tremendous opportunity ahead, we are taking important steps to further optimize the business and drive greater efficiencies where needed to enhance our customer experience, strengthen our supplier partnerships, and further propel us down the path to profitability.”

For earnings history and earnings-related data on Wayfair (W) click here.

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