NYSE$W

Wayfair Inc. · Q3 2020 earnings

Q3 2020 earnings · · Investor relations

Briefing

Wayfair's Q3 2020 earnings showcased strong growth, driven by increased customer activity and efficient cost management.

Wayfair reported a significant increase in net revenue for Q3 2020, up 66.5% year-over-year to $3.8 billion. The company also achieved net income of $173.2 million and a diluted earnings per share of $1.67. Active customers increased by 50.9% year-over-year, reaching 28.8 million.

  • Total net revenue increased by 66.5% year-over-year to $3.8 billion.
  • The number of active customers reached 28.8 million, a 50.9% increase year-over-year.
  • Net income was reported at $173.2 million.
  • Diluted earnings per share was $1.67.

Headline financials

Total Revenue

$3.84B

Previous: $2.31B+66.5%
EPS (adj)

$2.30

Previous: -$2.23+203.1%
LTM Net Revenue per Customer

$451.00

Previous: $449.00+0.4%
Average Order Value

$243.00

Previous: $252.00-3.6%
Active customers

28.8M

Previous: 19.1M+51.0%
Orders delivered

15.8M

No prior period
Capital Expenditures

-$146M

Previous: -$184M+20.5%
Free Cash Flow

$26.9M

Previous: -$456M+105.9%
Net Income

$173M

Previous: -$272M+163.7%
Operating Income

$222M

Previous: -$260M+185.4%
Gross Profit

$1.15B

Previous: $540M+112.5%
Cash & Equivalents

$2.44B

Previous: $1.3B+88.6%
Total Assets

$4.56B

Previous: $3.01B+51.6%
Stock-Based Comp

$70.1M

Previous: $61.8M+13.5%

Revenue & EPS history

Wayfair · Revenue · Quarterly

$3.84B

Q3 2020+66.5%vs Q3 2019
Beat estimate in 13 of 16 quarters(81%)
ActualEstimate

Revenue by segment

Wayfair · $3.84B total across 2 segments · Q3 2020

  • U.S.
    $3.27B+66.5%
  • International
    $565M+66.7%

Forward guidance

Wayfair anticipates continued strong profitable growth well beyond the current circumstances, driven by strategic investments and category momentum.

Tailwinds

  • Category momentum is vibrant.
  • Demand is moving online at an accelerated pace.
  • The home is expected to be even more important when it comes to celebrating the holidays this year.
  • Long-term mindset and strategic investments are translating to share gains.
  • Sustained profitability and positive free cash flow generation.

Headwinds

  • Continued uncertainty about the economy.
  • Continued uncertainty about the pandemic.
  • No specific negative aspects were mentioned in the provided text.
  • No specific negative aspects were mentioned in the provided text.
  • No specific negative aspects were mentioned in the provided text.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q3 2020

Historical avgQ3 2020

+1.9%

Avg return

Earnings day

+1.2%

Avg return

5 days after

+3.4%

Avg return

30 days after

50%

23 / 46 earnings

Positive

+40.4%

Q2 2015

Best reaction

-27.1%

Q1 2022

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-10.4%-13.7%-1.7%
Q4 2025-12.7%-19.2%-20.9%
Q3 2025+23.1%+19.7%+30.2%
Q1 2025+3.5%-0.0%+36.7%
Q4 2024-0.6%-7.5%-27.3%
Q3 2024-2.1%-5.6%+8.0%
Q2 2024-12.2%-20.0%-21.8%
Q1 2024+25.8%+37.6%+17.7%
Q4 2023+7.7%+17.5%+29.8%
Q3 2023+9.6%+8.4%+37.4%
Q2 2023+14.0%+12.2%-1.0%
Q1 2023+28.4%+17.1%+38.1%
Q4 2022-24.9%-18.7%-31.3%
Q3 2022-8.0%-10.2%+18.3%
Q2 2022-3.3%-7.5%-22.9%
Q1 2022-27.1%-35.6%-35.8%
Q4 2021+8.1%+9.2%-5.4%
Q3 2021-8.4%-6.8%-12.8%
Q2 2021+5.1%+13.6%+9.0%
Q1 2021+12.7%+20.3%+18.5%
Q4 2020+12.0%+24.0%+33.1%
Q3 2020+5.7%+17.8%-6.2%
Q2 2020+7.5%+2.5%-10.3%
Q1 2020+34.8%+40.2%+32.4%
Q4 2019-12.2%-12.8%-34.2%
Q3 2019-17.2%-19.4%-16.0%
Q2 2019-2.9%-6.5%-14.0%
Q1 2019-9.0%-10.8%-11.9%
Q4 2018+36.7%+39.7%+35.1%
Q3 2018-15.7%-15.2%-3.7%
Q2 2018+4.1%+7.2%+26.1%
Q1 2018+16.9%+26.1%+45.8%
Q4 2017-21.4%-20.3%-29.4%
Q3 2017-9.3%-19.0%-5.6%
Q2 2017-9.6%-13.5%-8.4%
Q1 2017+25.5%+18.7%+43.1%
Q4 2016-4.8%-8.4%-7.0%
Q3 2016+1.1%+6.1%+14.7%
Q2 2016-21.8%-19.2%-14.2%
Q1 2016+7.5%
Q4 2015+2.0%
Q3 2015-9.3%
Q2 2015+40.4%
Q1 2015-2.6%
Q4 2014+10.0%
Q3 2014-9.0%
Q1 2014
Q4 2013
Q3 2013
Q2 2013
Q1 2013

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