Wayfair Announces Fourth Quarter and Full Year 2024 Results, Reports Positive Year-Over-Year Growth with Strong Profitability
Wayfair (NYSE: W) reported Q4 2024 financial results with total net revenue of $3.1 billion, showing a slight increase of 0.2% year-over-year. U.S. net revenue grew 1.1% to $2.7 billion, while international revenue declined 5.7% to $381 million.
The company reported a Q4 net loss of $128 million with adjusted EBITDA of $96 million. Full-year 2024 results showed total net revenue of $11.9 billion, down 1.3% year-over-year, with a net loss of $492 million and adjusted EBITDA of $453 million.
Key metrics include 21.4 million active customers (down 4.5% YoY), average order value of $290 (up from $276), and 79.4% of orders from repeat customers. Mobile orders represented 64.5% of total deliveries, up from 62.8% in Q4 2023.
Wayfair (NYSE: W) ha riportato i risultati finanziari del Q4 2024 con un fatturato netto totale di 3,1 miliardi di dollari, mostrando un leggero aumento dello 0,2% rispetto all'anno precedente. Il fatturato netto negli Stati Uniti è cresciuto dell'1,1% raggiungendo i 2,7 miliardi di dollari, mentre il fatturato internazionale è diminuito del 5,7% a 381 milioni di dollari.
L'azienda ha registrato una perdita netta nel Q4 di 128 milioni di dollari con un EBITDA rettificato di 96 milioni di dollari. I risultati dell'intero anno 2024 hanno mostrato un fatturato netto totale di 11,9 miliardi di dollari, in calo dell'1,3% rispetto all'anno precedente, con una perdita netta di 492 milioni di dollari e un EBITDA rettificato di 453 milioni di dollari.
I principali indicatori includono 21,4 milioni di clienti attivi (in calo del 4,5% rispetto all'anno precedente), un valore medio degli ordini di 290 dollari (rispetto ai 276 dollari), e il 79,4% degli ordini provenienti da clienti abituali. Gli ordini mobili hanno rappresentato il 64,5% delle consegne totali, in aumento rispetto al 62,8% del Q4 2023.
Wayfair (NYSE: W) informó los resultados financieros del Q4 2024 con un ingreso neto total de 3.1 mil millones de dólares, mostrando un ligero aumento del 0.2% interanual. Los ingresos netos en EE. UU. crecieron un 1.1% alcanzando los 2.7 mil millones de dólares, mientras que los ingresos internacionales cayeron un 5.7% a 381 millones de dólares.
La compañía reportó una pérdida neta en el Q4 de 128 millones de dólares con un EBITDA ajustado de 96 millones de dólares. Los resultados del año completo 2024 mostraron un ingreso neto total de 11.9 mil millones de dólares, un descenso del 1.3% interanual, con una pérdida neta de 492 millones de dólares y un EBITDA ajustado de 453 millones de dólares.
Los indicadores clave incluyen 21.4 millones de clientes activos (una disminución del 4.5% interanual), un valor promedio de pedido de 290 dólares (en aumento desde 276 dólares), y el 79.4% de los pedidos provenientes de clientes recurrentes. Los pedidos móviles representaron el 64.5% de las entregas totales, en comparación con el 62.8% en el Q4 2023.
Wayfair (NYSE: W)는 2024년 4분기 재무 결과를 발표하며 총 순수익이 31억 달러로 전년 대비 0.2% 증가했다고 보고했습니다. 미국의 순수익은 1.1% 증가하여 27억 달러에 달했으며, 국제 수익은 5.7% 감소하여 3억 8100만 달러가 되었습니다.
회사는 4분기 순손실이 1억 2800만 달러이며 조정 EBITDA는 9600만 달러라고 보고했습니다. 2024년 전체 연간 결과는 총 순수익이 119억 달러로 전년 대비 1.3% 감소했으며, 순손실은 4억 9200만 달러, 조정 EBITDA는 4억 5300만 달러로 나타났습니다.
주요 지표로는 2140만 명의 활성 고객(전년 대비 4.5% 감소), 평균 주문 금액이 290달러(276달러에서 증가), 반복 고객의 주문 비율이 79.4%를 차지했습니다. 모바일 주문은 전체 배송의 64.5%를 차지하며, 이는 2023년 4분기의 62.8%에서 증가한 수치입니다.
Wayfair (NYSE: W) a annoncé les résultats financiers du 4ème trimestre 2024 avec un chiffre d'affaires net total de 3,1 milliards de dollars, montrant une légère augmentation de 0,2 % par rapport à l'année précédente. Le chiffre d'affaires net aux États-Unis a augmenté de 1,1 % pour atteindre 2,7 milliards de dollars, tandis que le chiffre d'affaires international a diminué de 5,7 % pour atteindre 381 millions de dollars.
L'entreprise a enregistré une perte nette de 128 millions de dollars au 4ème trimestre avec un EBITDA ajusté de 96 millions de dollars. Les résultats de l'année entière 2024 ont montré un chiffre d'affaires net total de 11,9 milliards de dollars, en baisse de 1,3 % par rapport à l'année précédente, avec une perte nette de 492 millions de dollars et un EBITDA ajusté de 453 millions de dollars.
Les indicateurs clés incluent 21,4 millions de clients actifs (en baisse de 4,5 % par rapport à l'année précédente), une valeur moyenne de commande de 290 dollars (en hausse par rapport à 276 dollars) et 79,4 % des commandes provenant de clients récurrents. Les commandes mobiles représentaient 64,5 % des livraisons totales, en hausse par rapport à 62,8 % au 4ème trimestre 2023.
Wayfair (NYSE: W) hat die finanziellen Ergebnisse für das 4. Quartal 2024 veröffentlicht, mit einem Gesamtumsatz von 3,1 Milliarden Dollar, was einem leichten Anstieg von 0,2 % im Vergleich zum Vorjahr entspricht. Der Nettoumsatz in den USA wuchs um 1,1 % auf 2,7 Milliarden Dollar, während der internationale Umsatz um 5,7 % auf 381 Millionen Dollar zurückging.
Das Unternehmen berichtete über einen Nettoverlust im 4. Quartal von 128 Millionen Dollar bei einem bereinigten EBITDA von 96 Millionen Dollar. Die Ergebnisse für das gesamte Jahr 2024 zeigten einen Gesamtumsatz von 11,9 Milliarden Dollar, was einem Rückgang von 1,3 % im Vergleich zum Vorjahr entspricht, mit einem Nettoverlust von 492 Millionen Dollar und einem bereinigten EBITDA von 453 Millionen Dollar.
Wichtige Kennzahlen umfassen 21,4 Millionen aktive Kunden (ein Rückgang um 4,5 % im Jahresvergleich), einen durchschnittlichen Bestellwert von 290 Dollar (im Vergleich zu 276 Dollar) und 79,4 % der Bestellungen, die von wiederkehrenden Kunden stammen. Mobile Bestellungen machten 64,5 % der Gesamtlieferungen aus, ein Anstieg von 62,8 % im 4. Quartal 2023.
- Q4 revenue showed positive YoY growth at $3.1B (+0.2%)
- U.S. net revenue increased by 1.1% to $2.7B in Q4
- Average order value increased to $290 from $276
- Q4 Adjusted EBITDA reached $96M
- Strong cash position with $1.4B in cash and total liquidity of $1.9B
- Full-year net revenue declined 1.3% to $11.9B
- Q4 net loss of $128M
- International revenue decreased 5.7% in Q4
- Active customers decreased 4.5% YoY
- Orders delivered decreased 5.3% YoY
Insights
Wayfair's Q4 2024 results reveal a complex narrative of operational optimization amid challenging market conditions. The marginal revenue growth of
The divergence between customer metrics tells an important story: while active customers declined by
The company's financial position has notably strengthened, with operating cash flow of
The mobile order share increase to
Q4 Net Revenue of
Fourth Quarter 2024 Financial Highlights
- Total net revenue of
$3.1 billion $7 million 0.2% year over year U.S. net revenue of$2.7 billion $30 million 1.1% year over year- International net revenue of
$381 million 5.7% year over year. International Net Revenue Constant Currency Growth was (5.0)% - Gross profit was
$941 million 30.2% of total net revenue - Net loss was
$128 million $96 million - Diluted loss per share was
$1.02 $0.25 - Net cash provided by operating activities was
$162 million $102 million - Cash, cash equivalents and short-term investments totaled
$1.4 billion $1.9 billion
Full Year 2024 Financial Highlights
- Total net revenue of
$11.9 billion $152 million 1.3% year over year U.S. net revenue of$10.4 billion $109 million 1.0% year over year- International net revenue of
$1.5 billion $43 million 2.8% year over year. International Net Revenue Constant Currency Growth was (2.7)% - Gross profit was
$3.6 billion 30.2% of total net revenue - Net loss was
$492 million $453 million - Diluted loss per share was
$4.01 $0.13 - Net cash provided by operating activities was
$317 million $83 million
"The fourth quarter was a strong conclusion to the year across multiple fronts. From a topline performance perspective, we ended 2024 on a high note - with net revenue showing positive year-over-year growth. These results enabled us to drive nearly
Shah continued, "Our strong financial performance enabled us to tap into the high yield markets for the first time, putting us in the strongest balance sheet position in many years. We're making smart, high return investments across the business, and at the same time remain committed to growing adjusted EBITDA dollars year-over-year. We are confident this approach sets us up well for a compelling payoff over 2025 and are excited to bring all of our stakeholders with us on this next leg of the Wayfair journey."
Other Fourth Quarter Highlights
- Active customers totaled 21.4 million as of December 31, 2024, a decrease of
4.5% year over year - LTM net revenue per active customer was
$555 3.4% year over year - Orders per customer, measured as LTM orders divided by active customers, was 1.85 for the fourth quarter of 2024, compared to 1.84 for the fourth quarter of 2023
- Orders delivered in the fourth quarter of 2024 were 10.7 million, a decrease of
5.3% year over year - Repeat customers placed
79.4% of total orders delivered in both of the fourth quarters of 2024 and 2023 - Repeat customers placed 8.5 million orders in the fourth quarter of 2024, a decrease of
5.6% year over year - Average order value was
$290 $276 64.5% of total orders delivered were placed via a mobile device in the fourth quarter of 2024, compared to62.8% in the fourth quarter of 2023
Key Financial Statement and Operating Metrics
Three Months Ended December 31, | Year Ended December 31, | |||||||
2024 | 2023 | 2024 | 2023 | |||||
(in millions, except LTM net revenue per active customer, average order value and per share data) | ||||||||
Key Financial Statement Metrics: | ||||||||
Net revenue | $ 3,121 | $ 3,114 | $ 11,851 | $ 12,003 | ||||
Gross profit | $ 941 | $ 944 | $ 3,574 | $ 3,667 | ||||
Loss from operations | $ (117) | $ (172) | $ (461) | $ (813) | ||||
Net loss | $ (128) | $ (174) | $ (492) | $ (738) | ||||
Loss per share: | ||||||||
Basic | $ (1.02) | $ (1.49) | $ (4.01) | $ (6.47) | ||||
Diluted | $ (1.02) | $ (1.49) | $ (4.01) | $ (6.47) | ||||
Net cash provided by operating activities | $ 162 | $ 158 | $ 317 | $ 349 | ||||
Key Operating Metrics: | ||||||||
Active customers (1) | 21 | 22 | 21 | 22 | ||||
LTM net revenue per active customer (2) | $ 555 | $ 537 | $ 555 | $ 537 | ||||
Orders delivered (3) | 11 | 11 | 40 | 41 | ||||
Average order value (4) | $ 290 | $ 276 | $ 300 | $ 292 | ||||
Non-GAAP Financial Measures: | ||||||||
Adjusted EBITDA | $ 96 | $ 92 | $ 453 | $ 306 | ||||
Free Cash Flow | $ 102 | $ 62 | $ 83 | $ (2) | ||||
Adjusted Diluted (Loss) Earnings per Share | $ (0.25) | $ (0.11) | $ 0.13 | $ (1.13) | ||||
(1) | The number of active customers represents the total number of individual customers who have purchased at least once directly from our sites during the preceding twelve-month period. The change in active customers in a reported period captures both the inflow of new customers as well as the outflow of existing customers who have not made a purchase in the last twelve months. We view the number of active customers as a key indicator of our growth. |
(2) | LTM net revenue per active customer represents our total net revenue in the last twelve months divided by our total number of active customers for the same preceding twelve-month period. We view LTM net revenue per active customer as a key indicator of our customers' purchasing patterns, including their initial and repeat purchase behavior. |
(3) | Orders delivered represent the total orders delivered in any period, inclusive of orders that may eventually be returned. As we ship a large volume of packages through multiple carriers, actual delivery dates may not always be available, and as such we estimate delivery dates based on historical data. We recognize net revenue when an order is delivered, and therefore orders delivered, together with average order value, is an indicator of the net revenue we expect to recognize in a given period. We view orders delivered as a key indicator of our growth. |
(4) | We define average order value as total net revenue in a given period divided by the orders delivered in that period. We view average order value as a key indicator of the mix of products on our sites, the mix of offers and promotions and the purchasing behavior of our customers. |
Webcast and Conference Call
Wayfair will host a conference call and webcast to discuss its fourth quarter and full year 2024 financial results today at 8 a.m. (ET). Investors and participants should register for the call in advance by visiting https://events.q4inc.com/attendee/117874179. After registering, instructions will be shared on how to join the call. The call will also be available via live webcast at https://registrations.events/direct/Q4I5693292. An archive of the webcast conference call will be available shortly after the call ends on Wayfair's Investor website at investor.wayfair.com. Important information may be disseminated initially or exclusively via the Investor website; investors should consult the site to access this information.
About Wayfair
Wayfair is the destination for all things home, and we make it easy to create a home that is just right for you. Whether you're looking for that perfect piece or redesigning your entire space, Wayfair offers quality finds for every style and budget, and a seamless experience from inspiration to installation.
The Wayfair family of brands includes:
- Wayfair: Every style. Every home.
- AllModern: Modern made simple.
- Birch Lane: Classic style for joyful living.
- Joss & Main: The ultimate style edit for home.
- Perigold: The destination for luxury home.
- Wayfair Professional: A one-stop Pro shop.
Wayfair generated
Media Relations Contact:
Tara Lambropoulos
PR@wayfair.com
Investor Relations Contact:
James Lamb
IR@wayfair.com
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of federal and state securities laws. All statements other than statements of historical fact contained in this press release, including statements regarding our investment plans, including our advertisement and promotional spend, and anticipated returns on those investments, our future customer growth, our future results of operations and financial position, including our exit from the German market, our financial outlook, profitability goals, business strategy, plans and objectives of management for future operations, and, the impact of macroeconomic events and our response to such events, are forward-looking statements. In some cases, you can identify forward-looking statements by terms such as "aim," "may," "will," "should," "expects," "plans," "anticipates," "continues," "could," "intends," "goals," "target," "projects," "contemplates," "believes," "estimates," "predicts," "potential," or the negative of these terms or other similar expressions.
Forward-looking statements are based on current expectations of future events. We cannot guarantee that any forward-looking statement will be accurate, although we believe that we have been reasonable in our expectations and assumptions. Investors should realize that if underlying assumptions prove inaccurate or that known or unknown risks or uncertainties materialize, actual results could vary materially from our expectations and projections. Investors are therefore cautioned not to place undue reliance on any forward-looking statements. We believe that these risks and uncertainties include, but are not limited to, adverse macroeconomic conditions, including economic instability, changes in tax laws, regulations and new or increased tariffs, including based on the recent
These forward-looking statements speak only as of the date of this press release and, except as required by applicable law, we undertake no obligation to publicly update or revise any forward-looking statements contained herein, whether as a result of any new information, future events or otherwise.
WAYFAIR INC. CONSOLIDATED BALANCE SHEETS (Unaudited)
| ||||
December 31, | ||||
2024 | 2023 | |||
(in millions, except share | ||||
Assets: | ||||
Current assets | ||||
Cash and cash equivalents | $ 1,316 | $ 1,322 | ||
Short-term investments | 56 | 29 | ||
Accounts receivable, net | 155 | 140 | ||
Inventories | 76 | 75 | ||
Prepaid expenses and other current assets | 274 | 289 | ||
Total current assets | 1,877 | 1,855 | ||
Operating lease right-of-use assets | 925 | 820 | ||
Property and equipment, net | 603 | 748 | ||
Other non-current assets | 54 | 51 | ||
Total assets | $ 3,459 | $ 3,474 | ||
Liabilities and Stockholders' Deficit: | ||||
Current liabilities | ||||
Accounts payable | $ 1,246 | $ 1,234 | ||
Other current liabilities | 1,124 | 949 | ||
Total current liabilities | 2,370 | 2,183 | ||
Long-term debt | 2,882 | 3,092 | ||
Operating lease liabilities, net of current | 929 | 862 | ||
Other non-current liabilities | 33 | 44 | ||
Total liabilities | 6,214 | 6,181 | ||
Stockholders' deficit: | ||||
Convertible preferred stock, | — | — | ||
Class A common stock, par value | — | — | ||
Class B common stock, par value | — | — | ||
Additional paid-in capital | 1,751 | 1,316 | ||
Accumulated deficit | (4,510) | (4,018) | ||
Accumulated other comprehensive income (loss) | 4 | (5) | ||
Total stockholders' deficit | (2,755) | (2,707) | ||
Total liabilities and stockholders' deficit | $ 3,459 | $ 3,474 | ||
WAYFAIR INC. CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) | ||||||||
Three Months Ended December 31, | Year Ended December 31, | |||||||
2024 | 2023 | 2024 | 2023 | |||||
(in millions, except per share data) | ||||||||
Net revenue (1) | $ 3,121 | $ 3,114 | $ 11,851 | $ 12,003 | ||||
Cost of goods sold (2) | 2,180 | 2,170 | 8,277 | 8,336 | ||||
Gross profit | 941 | 944 | 3,574 | 3,667 | ||||
Operating expenses: | ||||||||
Customer service and merchant fees (2) | 120 | 138 | 470 | 557 | ||||
Advertising | 429 | 381 | 1,472 | 1,397 | ||||
Selling, operations, technology, general and administrative (2) | 474 | 597 | 1,977 | 2,447 | ||||
Impairment and other related net charges | 35 | — | 37 | 14 | ||||
Restructuring charges | — | — | 79 | 65 | ||||
Total operating expenses | 1,058 | 1,116 | 4,035 | 4,480 | ||||
Loss from operations | (117) | (172) | (461) | (813) | ||||
Interest expense, net | (14) | (2) | (29) | (17) | ||||
Other (expense) income, net | (24) | 3 | (21) | 1 | ||||
Gain on debt extinguishment | 29 | — | 29 | 100 | ||||
Loss before income taxes | (126) | (171) | (482) | (729) | ||||
Provision for income taxes, net | 2 | 3 | 10 | 9 | ||||
Net loss | $ (128) | $ (174) | $ (492) | $ (738) | ||||
Loss per share: | ||||||||
Basic | $ (1.02) | $ (1.49) | $ (4.01) | $ (6.47) | ||||
Diluted | $ (1.02) | $ (1.49) | $ (4.01) | $ (6.47) | ||||
Weighted-average number of shares of common stock outstanding used in computing per share amounts: | ||||||||
Basic | 125 | 118 | 123 | 114 | ||||
Diluted | 125 | 118 | 123 | 114 | ||||
(1) The following tables present net revenue attributable to our reportable segments for the periods indicated:
| ||||||||
Three Months Ended December 31, | Year Ended December 31, | |||||||
2024 | 2023 | 2024 | 2023 | |||||
(in millions) | ||||||||
$ 2,740 | $ 2,710 | $ 10,373 | $ 10,482 | |||||
International net revenue | 381 | 404 | 1,478 | 1,521 | ||||
Net revenue | $ 3,121 | $ 3,114 | $ 11,851 | $ 12,003 | ||||
(2) Includes equity-based compensation and related taxes as follows:
| ||||||||
Three Months Ended December 31, | Year Ended December 31, | |||||||
2024 | 2023 | 2024 | 2023 | |||||
(in millions) | ||||||||
Cost of goods sold | $ 2 | $ 3 | $ 10 | $ 10 | ||||
Customer service and merchant fees | 4 | 6 | 19 | 29 | ||||
Selling, operations, technology, general and administrative | 82 | 150 | 382 | 584 | ||||
Total equity-based compensation and related taxes | $ 88 | $ 159 | $ 411 | $ 623 | ||||
WAYFAIR INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
| ||||
Year Ended December 31, | ||||
2024 | 2023 | |||
(in millions) | ||||
Cash flows from operating activities: | ||||
Net loss | $ (492) | $ (738) | ||
Adjustments to reconcile net loss to net cash provided by operating activities: | ||||
Depreciation and amortization | 387 | 417 | ||
Equity-based compensation expense | 395 | 605 | ||
Amortization of debt discount and issuance costs | 9 | 8 | ||
Impairment and other related net charges | 37 | 14 | ||
Gain on debt extinguishment | (29) | (100) | ||
Other non-cash adjustments | (1) | (3) | ||
Changes in operating assets and liabilities: | ||||
Accounts receivable, net | (35) | 132 | ||
Inventories | (2) | 16 | ||
Prepaid expenses and other assets | 10 | 16 | ||
Accounts payable and other liabilities | 38 | (18) | ||
Net cash provided by operating activities | 317 | 349 | ||
Cash flows for investing activities: | ||||
Purchase of short- and long-term investments | (67) | (36) | ||
Sale and maturities of short- and long-term investments | 39 | 233 | ||
Purchase of property and equipment | (73) | (148) | ||
Site and software development costs | (161) | (203) | ||
Other investing activities, net | — | 2 | ||
Net cash used in investing activities | (262) | (152) | ||
Cash flows (for) from financing activities: | ||||
Proceeds from issuance of debt, net of issuance costs | 786 | 678 | ||
Premiums paid for capped call confirmations | — | (87) | ||
Payment of principal upon maturity of debt | (117) | — | ||
Payments to extinguish debt | (741) | (514) | ||
Other financing activities, net | 3 | — | ||
Net cash (used in) provided by financing activities | (69) | 77 | ||
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 8 | 2 | ||
Net (decrease) increase in cash, cash equivalents and restricted cash | (6) | 276 | ||
Cash, cash equivalents and restricted cash | ||||
Beginning of year | $ 1,326 | $ 1,050 | ||
End of year | $ 1,320 | $ 1,326 | ||
Non-GAAP Financial Measures
To supplement our condensed consolidated financial statements presented in accordance with generally accepted accounting principles ("GAAP"), this earnings release and the accompanying tables and the related earnings conference call contain certain non-GAAP financial measures, including Adjusted EBITDA, Adjusted EBITDA Margin, Free Cash Flow, Adjusted Diluted Earnings or Loss per Share and Net Revenue Constant Currency Growth. We use these non-GAAP financial measures internally in analyzing our financial results and believe they are useful to investors, as a supplement to GAAP measures, in evaluating our ongoing operational performance. We have provided a reconciliation of these non-GAAP financial measures to the most directly comparable GAAP financial measure in this earnings release.
We calculate Adjusted EBITDA as net income or loss before depreciation and amortization, equity-based compensation and related taxes, interest income or expense, net, other income or expense, net, provision or benefit for income taxes, net, non-recurring items and other items not indicative of our ongoing operating performance. Adjusted EBITDA Margin is calculated by dividing Adjusted EBITDA by Net Revenue. We disclose Adjusted EBITDA because it is a key measure used by our management and board of directors to evaluate our operating performance, generate future operating plans and make strategic decisions regarding the allocation of capital. In particular, we believe the exclusion of certain expenses in calculating Adjusted EBITDA facilitates operating performance comparisons on a period-to-period basis as these costs may vary independent of business performance. For instance, we exclude the impact of equity-based compensation and related taxes as we do not consider this item to be indicative of our core operating performance. Investors should, however, understand that equity-based compensation and related taxes will be a significant recurring expense in our business and an important part of the compensation provided to our employees. Accordingly, we believe that Adjusted EBITDA provides useful information to investors and others in understanding and evaluating our operating results in the same manner as our management and board of directors.
We calculate Free Cash Flow as net cash provided by or used in operating activities less net cash used to purchase property and equipment and site and software development costs (collectively, "Capital Expenditures"). We disclose Free Cash Flow because it is an important indicator of our business performance as it measures the amount of cash we generate. Accordingly, we believe that Free Cash Flow provides useful information to investors and others in understanding and evaluating our operating results in the same manner as our management.
We calculate Adjusted Diluted Earnings or Loss per Share as net income or loss plus equity-based compensation and related taxes, provision or benefit for income taxes, net, non-recurring items, other items not indicative of our ongoing operating performance, and, if dilutive, interest expense associated with convertible debt instruments under the if-converted method divided by the weighted-average number of shares of common stock used in the computation of diluted earnings or loss per share. Accordingly, we believe that these adjustments to our adjusted diluted net income or loss before calculating per share amounts for all periods presented provide a more meaningful comparison between our operating results from period to period.
We calculate Net Revenue Constant Currency Growth by translating the current period local currency net revenue by the currency exchange rates used to translate the financial statements in the comparable prior-year period. We disclose Net Revenue Constant Currency Growth because it is an important indicator of our operating results. Accordingly, we believe that Net Revenue Constant Currency Growth provides useful information to investors and others in understanding and evaluating trends in our operating results in the same manner as our management.
We calculate forward-looking non-GAAP financial measures based on internal forecasts that omit certain amounts that would be included in forward-looking GAAP financial measures. We do not attempt to provide a reconciliation of forward-looking non-GAAP financial measures to forward looking GAAP financial measures because 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. Further, we believe that such reconciliations would imply a degree of precision and certainty that could be confusing to investors. Such items could have a substantial impact on GAAP measures of financial performance.
The non-GAAP financial measures have limitations as analytical tools. We do not, nor do we suggest that investors should consider such non-GAAP financial measures in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. Investors should also note that the non-GAAP financial measures we use may not be the same non-GAAP financial measures and may not be calculated in the same manner as that of other companies, including other companies in our industry.
The following table reflects the reconciliation of net income or loss to Adjusted EBITDA and Adjusted EBITDA margin for each of the periods indicated:
Three Months Ended December 31, | Year Ended December 31, | ||||||||
2024 | 2023 | 2024 | 2023 | ||||||
(in millions) | |||||||||
Reconciliation of Adjusted EBITDA: | |||||||||
Net loss | $ (128) | $ (174) | $ (492) | $ (738) | |||||
Depreciation and amortization | 90 | 105 | 387 | 417 | |||||
Equity-based compensation and related taxes | 88 | 159 | 411 | 623 | |||||
Interest expense, net | 14 | 2 | 29 | 17 | |||||
Other expense (income), net | 24 | (3) | 21 | (1) | |||||
Provision for income taxes, net | 2 | 3 | 10 | 9 | |||||
Other: | |||||||||
Impairment and other related net charges (1) | 35 | — | 37 | 14 | |||||
Restructuring charges (2) | — | — | 79 | 65 | |||||
Gain on debt extinguishment (3) | (29) | — | (29) | (100) | |||||
Adjusted EBITDA | $ 96 | $ 92 | $ 453 | $ 306 | |||||
Net revenue | $ 3,121 | $ 3,114 | $ 11,851 | $ 12,003 | |||||
Net loss margin | (4.1) % | (5.6) % | (4.2) % | (6.1) % | |||||
Adjusted EBITDA Margin | 3.1 % | 3.0 % | 3.8 % | 2.5 % | |||||
(1) | During the three months ended December 31, 2024, we recorded net charges of | ||||||||
(2) | During the year ended December 31, 2024, we incurred | ||||||||
(3) | During the three months and year ended December 31, 2024, we recorded a | ||||||||
The following table presents Adjusted EBITDA attributable to our segments, and the reconciliation of net income or loss to Adjusted EBITDA is presented in the preceding table:
Three Months Ended December 31, | Year Ended December 31, | |||||||
2024 | 2023 | 2024 | 2023 | |||||
(in millions) | ||||||||
Segment Adjusted EBITDA: | ||||||||
US | $ 110 | $ 131 | $ 571 | $ 444 | ||||
International | (14) | (39) | (118) | (138) | ||||
Adjusted EBITDA | $ 96 | $ 92 | $ 453 | $ 306 | ||||
The following table presents a reconciliation of net cash provided by or used in operating activities to Free Cash Flow for each of the periods indicated:
Three Months Ended December 31, | Year Ended December 31, | |||||||
2024 | 2023 | 2024 | 2023 | |||||
(in millions) | ||||||||
Net cash provided by operating activities | $ 162 | $ 158 | $ 317 | $ 349 | ||||
Purchase of property and equipment | (20) | (47) | (73) | (148) | ||||
Site and software development costs | (40) | (49) | (161) | (203) | ||||
Free Cash Flow | $ 102 | $ 62 | $ 83 | $ (2) | ||||
A reconciliation of the numerator and denominator for diluted earnings or loss per share, the most directly comparable GAAP financial measure, to the numerator and denominator for Adjusted Diluted Earnings or Loss per Share, in order to calculate Adjusted Diluted Earnings or Loss per Share is as follows:
Three Months Ended December 31, | Year Ended December 31, | |||||||
2024 | 2023 | 2024 | 2023 | |||||
(in millions, except per share data) | ||||||||
Numerator: | ||||||||
Numerator for basic and diluted loss per share - net loss | $ (128) | $ (174) | $ (492) | $ (738) | ||||
Adjustments to net loss | ||||||||
Equity-based compensation and related taxes | 88 | 159 | 411 | 623 | ||||
Provision for income taxes, net | 2 | 3 | 10 | 9 | ||||
Other: | ||||||||
Impairment and other related net charges | 35 | — | 37 | 14 | ||||
Restructuring charges | — | — | 79 | 65 | ||||
Gain on debt extinguishment | (29) | — | (29) | (100) | ||||
Numerator for Adjusted Diluted (Loss) Earnings per Share - Adjusted net (loss) income | $ (32) | $ (12) | $ 16 | $ (127) | ||||
Denominator: | ||||||||
Denominator for basic and diluted loss per share - weighted-average number of shares of common stock outstanding | 125 | 118 | 123 | 114 | ||||
Adjustments to effect of dilutive securities: | ||||||||
Restricted stock units | — | — | 1 | — | ||||
Denominator for Adjusted Diluted (Loss) Earnings per Share - Adjusted weighted-average number of shares of common stock outstanding after the effect of dilutive securities | 125 | 118 | 124 | 114 | ||||
Diluted Loss per Share | $ (1.02) | $ (1.49) | $ (4.01) | $ (6.47) | ||||
Adjusted Diluted (Loss) Earnings per Share | $ (0.25) | $ (0.11) | $ 0.13 | $ (1.13) | ||||
Quarterly Financial Metrics (Unaudited)
The following tables set forth selected financial quarterly metrics and other financial and operations data for the eight quarters ended December 31, 2024:
Three Months Ended | ||||||||||||||||
December 31, 2024 | September 30, 2024 | June 30, 2024 | March 31, 2024 | December 31, 2023 | September 30, 2023 | June 30, 2023 | March 31, 2023 | |||||||||
(in millions) | ||||||||||||||||
Segment Financial Metrics: | ||||||||||||||||
$ 2,740 | $ 2,512 | $ 2,730 | $ 2,391 | $ 2,710 | $ 2,572 | $ 2,785 | $ 2,415 | |||||||||
$ 110 | $ 141 | $ 199 | $ 121 | $ 131 | $ 123 | $ 161 | $ 29 | |||||||||
International Net Revenue | $ 381 | $ 372 | $ 387 | $ 338 | $ 404 | $ 372 | $ 386 | $ 359 | ||||||||
International Adjusted EBITDA | $ (14) | $ (22) | $ (36) | $ (46) | $ (39) | $ (23) | $ (33) | $ (43) | ||||||||
The following table reflects the reconciliation of net income or loss to Adjusted EBITDA for each of the periods indicated:
Three Months Ended | ||||||||||||||||||
December 31, 2024 | September 30, 2024 | June 30, 2024 | March 31, 2024 | December 31, 2023 | September 30, 2023 | June 30, 2023 | March 31, 2023 | |||||||||||
(in millions) | ||||||||||||||||||
Net loss | $ (128) | $ (74) | $ (42) | $ (248) | $ (174) | $ (163) | $ (46) | $ (355) | ||||||||||
Depreciation and amortization | 90 | 94 | 99 | 104 | 105 | 106 | 102 | 104 | ||||||||||
Equity-based compensation and related taxes | 88 | 98 | 98 | 127 | 159 | 146 | 167 | 151 | ||||||||||
Interest expense, net | 14 | 5 | 4 | 6 | 2 | 5 | 5 | 5 | ||||||||||
Other expense (income), net | 24 | (8) | 1 | 4 | (3) | 4 | (3) | 1 | ||||||||||
Provision (benefit) for income taxes, net | 2 | 3 | 2 | 3 | 3 | 2 | 2 | 2 | ||||||||||
Other: | ||||||||||||||||||
Impairment and other related net charges (1) | 35 | 1 | 1 | — | — | — | 1 | 13 | ||||||||||
Restructuring charges (2) | — | — | — | 79 | — | — | — | 65 | ||||||||||
Gain on debt extinguishment (3) | (29) | — | — | — | — | — | (100) | — | ||||||||||
Adjusted EBITDA | $ 96 | $ 119 | $ 163 | $ 75 | $ 92 | $ 100 | $ 128 | $ (14) | ||||||||||
(1) | During the year ended December 31, 2024, we recorded net charges of | |||||||||||||||||
(2) | During the year ended December 31, 2024, we incurred | |||||||||||||||||
(3) | During the year ended December 31, 2024, we recorded a | |||||||||||||||||
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SOURCE Wayfair Inc.
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