Wayfair Plummets Post Mixed Q4 Results, Faces 19% Decline In Active Customers

• Wayfair Inc (NYSE: W) reported a fourth-quarter FY22 sales decline of 4.6% year-on-year to $3.10 billion, beating the consensus of $3.06 billion.

• International net revenue fell 19.7% to $415 million, while U.S. revenue declined 1.8% to $2.7 billion.

• The number of active customers reached 22.1 million as of Dec. 31, 2022, a 19% decrease Y/Y. The average order value grew 5.2% Y/Y to $283.

• In Q4, 61.7% of total orders delivered were placed through a mobile device, versus 59% last year.

• Adjusted EPS loss of $(1.71) missed the analyst consensus of $(1.61).

• Gross profit rose 1.4% Y/Y to $893 million, and the margin expanded 170 basis points to 28.8%.

• Loss from operations for the quarter was $(330) million versus a loss of $(196) million last year.

• The company held $1.3 billion in cash and equivalents as of Dec. 31, 2022. Net cash used in operating activities for the year was $(674) million, and non-GAAP free cash flow was ($1.1) billion.

• “Although the short-term macroeconomic picture is unpredictable, we are confident in our ability to navigate its challenges and are reiterating our commitment to quickly reaching adjusted EBITDA profitability and then to positive free cash flow,” said Niraj Shah, CEO, co-founder and co-chairman, Wayfair.

• Price Action: W shares are trading lower by 26.66% at $36.53 on the last check Thursday.

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