Niraj Shah

BOSTON– Wayfair Inc., one of the world’s largest online destinations for home furnishings and décor, reported financial results for its third quarter ended September 30, 2015, and said its net revenue rose by 90.9 percent to $545 million.

Niraj Shah
Niraj Shah

“We are very pleased to report the third quarter in a row of tremendous growth across the business,” said Niraj Shah, CEO, co-founder and co-chairman, Wayfair. “New customer growth and repeat customer growth continue to accelerate at a phenomenal pace as we enhance our offering and build greater brand awareness with consumers. We are well positioned to enter the holiday season with key improvements across assortment, merchandising and marketing – and look forward to further building our leadership position as the number one destination for home furnishings and décor.”

Wayfair’s third quarter 2015 financial highlights are:

• Total net revenue increased to $594.0 million, up 76.7% year over year
• Direct Retail revenue, consisting of sales generated primarily through the sites of Wayfair’s five brands, increased to $545.0 million, up 90.9% year over year
• Gross profit was $141.4 million or 23.8% of total net revenue, compared to 23.5% of total net revenue in the same quarter last year
• Adjusted EBITDA was $(1.4) million or (0.2)% of total net revenue
• GAAP net loss was $15.5 million
• GAAP basic and diluted net loss per share was $0.18
• Non-GAAP diluted net loss per share was $0.13
• Non-GAAP free cash flow was $35.3 million
• At the end of the Third Quarter, cash, cash equivalents, and short-term and long-term investments totaled $399.8 million.

Other Highlights

• The number of active customers in our Direct Retail business reached 4.6 million as of September 30, 2015, up 60.6% year over year
• LTM net revenue per active customer increased to $371, up 8.5% year over year
• Orders per customer, measured as LTM orders divided by active customers, increased to 1.69 for the Third Quarter, up from 1.65 year over year
• Repeat customers placed 55.2% of total orders in the Third Quarter of 2015, compared to 49.8% in the Third Quarter of 2014
• Repeat customers placed 1.3 million orders in the Third Quarter of 2015, an increase of 96.0% year over year
• Orders delivered in the Third Quarter of 2015 were 2.3 million, an increase of 76.8% year over year
• Average order value was $235 for the Third Quarter 2015, an increase of 8.3% year over year
• In the Third Quarter of 2015, 35.1% of total orders delivered for our Direct Retail business were placed via a mobile device, up from 28.7% in the Third Quarter of 2014.