Wayfair Q2 2024 – Ups and Downs

By Tamara Parker • Thursday, August 01 08:04 • Permanent Link

Wayfair Inc. reported its financial results for the second quarter ended June 30, 2024, revealing a mix of ups and downs. While there was a decrease in total net revenue by $54 million, down 1.7% year over year, the international net revenue saw a slight uptick, increasing by $1 million, up 0.3% year over year. Gross profit was reported at $941 million, or 30.2% of total net revenue.

The company reported a net loss of $42 million, but non-GAAP adjusted EBITDA was $163 million, marking the best quarter of profitability and cash flow generation in three years. This is in line with the CEO's statement that "Q2 was a dynamic quarter that resulted in another period of share gain, amid continued macro headwinds."

Despite the challenging macro environment, Wayfair saw an increase in active customers, totaling 22.0 million as of June 30, 2024, reflecting a 0.9% year-over-year increase. However, the LTM net revenue per active customer decreased by 0.9% year over year, standing at $540. Orders delivered in the second quarter of 2024 were 10.0 million, a decrease of 2.9% year over year. Repeat customers placed 81.7% of total orders delivered, compared to 80.1% in the second quarter of 2023.

In terms of non-GAAP financial measures, adjusted EBITDA increased to $163 million from $128 million in the same period last year, and non-GAAP free cash flow rose to $183 million from $128 million. Adjusted diluted earnings per share also saw a significant increase, reaching $0.47 compared to $0.21 in the second quarter of 2023.

The company's cash, cash equivalents, and short-term investments amounted to $1.3 billion, with total liquidity reaching $1.9 billion, including availability under their revolving credit facility.

Despite the macro challenges, Wayfair remains focused on demonstrating substantial growth in profitability, as evidenced by their strict operating discipline and the company's best quarter of adjusted EBITDA and free cash flow generation in three years. Following these announcements, the company's shares moved 0.7%, and are now trading at a price of $54.43. If you want to know more, read the company's complete 8-K report here.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.