NYSE$W

Wayfair Inc. · Q3 2022 earnings

Q3 2022 earnings · · Investor relations

Briefing

Wayfair's financial performance declined with a decrease in revenue and a net loss, but the company focused on cost efficiency and customer loyalty.

Wayfair reported a decrease in total net revenue to $2.8 billion, a net loss of $283 million, and a diluted loss per share of $2.66 for the third quarter of 2022. The company is focusing on cost efficiency and customer loyalty to achieve profitability and cash flow neutrality.

  • Total net revenue decreased by 9.0% year over year to $2.8 billion.
  • U.S. net revenue decreased by 6.0% year over year to $2.4 billion.
  • International net revenue decreased by 24.0% year over year to $0.4 billion.
  • The company is focused on driving cost efficiency and improving customer loyalty.

Headline financials

Total Revenue

$2.84B

Previous: $3.12B-9.0%
EPS (adj)

-$2.11

Previous: $0.14-1607.1%
LTM Net Revenue per Customer

$547.00

Previous: $484.00+13.0%
Average Order Value

$325.00

Previous: $283.00+14.8%
Active customers

22.6M

Previous: 29.2M-22.6%
Orders delivered

8.7M

Previous: 11.0M-21.0%
Capital Expenditures

-$136M

Previous: -$77.6M-75.3%
Free Cash Flow

-$419M

Previous: -$156M-169.3%
Net Income

-$283M

Previous: -$78M-262.7%
Operating Income

-$372M

Previous: -$69.8M-433.0%
Gross Profit

$824M

Previous: $883M-6.7%
Cash & Equivalents

$731M

Previous: $1.86B-60.8%
Total Assets

$3.65B

Previous: $4.47B-18.2%
Stock-Based Comp

$122M

Previous: $83.2M+46.7%

Revenue & EPS history

Wayfair · Revenue · Quarterly

$2.84B

Q3 2022-9%vs Q3 2021
Beat estimate in 11 of 15 quarters(73%)
ActualEstimate

Revenue by segment

Wayfair · $2.84B total across 2 segments · Q3 2022

  • U.S.
    $2.44B-6.0%
  • International
    $400M-24.0%

Forward guidance

The company is focused on achieving adjusted EBITDA profitability and cash flow neutrality in the near term by driving cost efficiency, nailing the basics, and earning customer and supplier loyalty.

Tailwinds

  • Continuing work to control the controllables.
  • Orienting Wayfair around driving cost efficiency.
  • Focusing on nailing the basics.
  • Aiming to earn customer loyalty every day.
  • Direct visibility to over half a billion dollars of savings.

Headwinds

  • Macroeconomic factors, including the novel coronavirus (COVID-19) pandemic and the rise in inflation and interest rates
  • Inaccurate underlying assumptions
  • Known or unknown risks or uncertainties materialize
  • Actual results could vary materially from expectations and projections.
  • Forecasting the timing or amount of items that have not yet occurred and are out of our control is inherently uncertain and unavailable without unreasonable efforts

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 2022

Historical avgQ3 2022

+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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