BOSTON--(BUSINESS WIRE)--Wayfair Inc. (NYSE: W), one of the world’s largest online destinations for the home, today reported financial results for its fourth quarter and full year ended December 31, 2020.
Fourth Quarter 2020 Financial Highlights
- Total net revenue of $3.7 billion increased $1.1 billion, up 44.9% year over year
- U.S. net revenue of $3.0 billion increased $0.9 billion, up 40.1% year over year
- International net revenue of $671.8 million increased $278.2 million, up 70.7% year over year. International segment Net Revenue Constant Currency Growth was 66.7%
- Gross profit was $1.1 billion, or 29.0% of total net revenue
- Net income was $23.8 million
- Non-GAAP Adjusted EBITDA and Adjusted EBITDA Margin were $263.2 million and 7.2% of total net revenue
- Diluted earnings per share was $0.23
- Non-GAAP Adjusted Diluted Earnings Per Share was $1.24
- Non-GAAP Free Cash Flow was $128.3 million
- Cash, cash equivalents and short- and long-term investments totaled $2.6 billion
Full Year 2020 Financial Highlights
- Total net revenue of $14.1 billion increased $5.0 billion, up 55.0% year over year
- U.S. net revenue of $11.9 billion increased $4.1 billion, up 53.3% year over year
- International net revenue of $2.2 billion increased $0.9 billion, up 64.8% year over year. International segment Net Revenue Constant Currency Growth was 64.9%
- Gross profit was $4.1 billion, or 29.1% of total net revenue
- Net income was $185.0 million
- Non-GAAP Adjusted EBITDA and Adjusted EBITDA Margin were $946.9 million and 6.7% of total net revenue
- Diluted earnings per share was $1.86
- Non-GAAP Adjusted Diluted Earnings Per Share was $5.04
- Non-GAAP Free Cash Flow was $1.1 billion
“In Q4, Wayfair delivered another solid quarter of growth, profitability, and free cash flow. Online shopping behavior is becoming increasingly entrenched and consumer demand for the home category remains strong. Wayfair is capitalizing on these tailwinds by delivering a truly differentiated experience for both customers and suppliers. In the process, we are cementing our position as the leading platform for the Home, reinforcing our brand to tens of millions of customers, and developing innovative and value-added solutions for thousands of our suppliers,” said Niraj Shah, CEO, co-founder and co-chairman, Wayfair. “As we look beyond the pandemic period, we are confident that our long-term orientation and years of investments should translate to compounding share gains and increasing profitability in a rapidly growing e-commerce market.”
Other Fourth Quarter Highlights
- The number of active customers reached 31.2 million as of December 31, 2020, an increase of 53.7% year over year
- LTM net revenue per active customer was $453 as of December 31, 2020, an increase of 1.1% year over year
- Orders per customer, measured as LTM orders divided by active customers, was 1.96 for the fourth quarter of 2020, compared to 1.86 for the fourth quarter of 2019
- Repeat customers placed 72.5% of total orders delivered in the fourth quarter of 2020, compared to 68.6% in the fourth quarter of 2019
- Repeat customers placed 11.9 million orders in the fourth quarter of 2020, an increase of 55.6% year over year
- Orders delivered in the fourth quarter of 2020 were 16.5 million, an increase of 47.1% year over year
- Average order value was $223 for the fourth quarter of 2020, compared to $226 for the fourth quarter of 2019
- In the fourth quarter of 2020, 59.9% of total orders delivered were placed via a mobile device, compared to 54.8% in the fourth quarter of 2019
Key Financial and Operating Metrics
| Three Months Ended December 31, | Year Ended December 31, | |||||||||||||
| 2020 | 2019 | 2020 | 2019 | |||||||||||
| (in thousands, except LTM Net Revenue per Active Customer, Average Order Value and per share data) | ||||||||||||||
| Key Financial Statement Metrics: | ||||||||||||||
| Net revenue | $ | 3,670,851 | $ | 2,533,490 | $ | 14,145,156 | $ | 9,127,057 | ||||||
| Gross profit | 1,064,590 | 577,355 | 4,112,171 | 2,147,332 | ||||||||||
| Income (loss) from operations | 100,565 | (305,421 | ) | 360,349 | (929,941 | ) | ||||||||
| Net income (loss) | 23,818 | (330,222 | ) | 184,996 | (984,584 | ) | ||||||||
| Earnings (loss) per share: | ||||||||||||||
| Basic | $ | 0.24 | $ | (3.54 | ) | $ | 1.93 | $ | (10.68 | ) | ||||
| Diluted | $ | 0.23 | $ | (3.54 | ) | $ | 1.86 | $ | (10.68 | ) | ||||
| Key Operating Metrics: | ||||||||||||||
| Active Customers | 31,194 | 20,290 | 31,194 | 20,290 | ||||||||||
| LTM Net Revenue Per Active Customer | $ | 453 | $ | 448 | $ | 453 | $ | 448 | ||||||
| Orders Delivered | 16,473 | 11,195 | 60,999 | 37,641 | ||||||||||
| Average Order Value | $ | 223 | $ | 226 | $ | 232 | $ | 241 | ||||||
| Non-GAAP Financial Measures: | ||||||||||||||
| Adjusted EBITDA | $ | 263,240 | $ | (180,159 | ) | $ | 946,888 | $ | (496,544 | ) | ||||
| Free Cash Flow | $ | 128,290 | $ | (158,510 | ) | $ | 1,082,297 | $ | (597,698 | ) | ||||
| Adjusted Diluted Earnings (Loss) per Share | $ | 1.24 | $ | (2.80 | ) | $ | 5.04 | $ | (8.03 | ) | ||||
About Wayfair
Wayfair believes everyone should live in a home they love. Through technology and innovation, Wayfair makes it possible for shoppers to quickly and easily find exactly what they want from a selection of more than 22 million items across home furnishings, décor, home improvement, housewares and more. Committed to delighting its customers every step of the way, Wayfair is reinventing the way people shop for their homes – from product discovery to final delivery.
