Wayfair Announces Fourth Quarter and Full Year 2021 Results

Wayfair Inc. has reported financial results for its fourth quarter and full year ended December 31, 2021. Highlights of the results are as follows:

Fourth Quarter 2021 Financial Highlights

  • Total net revenue of $3.3 billion decreased $419 million, down 11.4% year-over-year
  • U.S. net revenue of $2.7 billion decreased $264 million, down 8.8% year-over-year
  • International net revenue of $517 million decreased $155 million, down 23.0% year-over-year. International Net Revenue Constant Currency Growth was (24.4)%
  • Gross profit was $881 million or 27.1% of total net revenue
  • Net loss was $202 million and Non-GAAP Adjusted EBITDA was $(4) million
  • Diluted loss per share was $1.92
  • Non-GAAP Adjusted Diluted Loss Per Share was $0.92
  • Net cash from operating activities was $89 million and Non-GAAP Free Cash Flow was $15 million
  • Cash, cash equivalents and short-term investments totalled $2.4 billion

Full Year 2021 Financial Highlights

  • Total net revenue of $13.7 billion decreased $437 million, down 3.1% year-over-year
  • U.S. net revenue of $11.2 billion decreased $652 million, down 5.5% year-over-year
  • International net revenue of $2.5 billion increased $215 million, up 9.6% year-over-year. International Net Revenue Constant Currency Growth was 2.1%
  • Gross profit was $3.9 billion or 28.4% of total net revenue
  • Net loss was $131 million and Non-GAAP Adjusted EBITDA was $614 million
  • Diluted loss per share was $1.26
  • Non-GAAP Adjusted Diluted Earnings Per Share was $2.32
  • Net cash from operating activities was $410 million and Non-GAAP Free Cash Flow was $130 million

“As we celebrate Wayfair’s 20th anniversary and the company’s rapid growth to a $14 billion household brand, we are proud of our accomplishments and even more excited about what’s ahead,” said Niraj Shah, CEO, co-founder and co-chairman, Wayfair. “While consumer behaviour has changed repeatedly throughout the pandemic, the primary elements for success in our category have not – the home remains top of mind and secular trends favour a long and durable shift to e-commerce. Wayfair has only just begun to scratch the surface of this vast opportunity.

“Over the last two years, we’ve grown our topline by more than 50% without increasing our headcount, which demonstrates the scalability and attractive structural economics of our business. Today, we are continuing our high ROI initiatives across all dimensions – including assortment, discovery, technology and logistics – to set ourselves up for continued strong growth. As we do, we are ready to navigate the macro environment with a strong balance sheet and a talented team – a team that is energized to drive Wayfair’s success over the next twenty years.”

Other Fourth Quarter Highlights

  • Active customers reached 27.3 million as of December 31, 2021, a decrease of 12.5% year-over-year
  • LTM net revenue per active customer was $501 as of December 31, 2021, an increase of 10.6% year-over-year
  • Orders per customer, measured as LTM orders divided by active customers, was 1.89 for the fourth quarter of 2021, compared to 1.96 for the fourth quarter of 2020
  • Orders delivered in the fourth quarter of 2021 were 12.1 million, a decrease of 26.7% year-over-year
  • Repeat customers placed 76.3% of total orders delivered in the fourth quarter of 2021, compared to 72.5% in the fourth quarter of 2020
  • Repeat customers placed 9.2 million orders in the fourth quarter of 2021, a decrease of 22.7% year-over-year
  • Average order value was $269 for the fourth quarter of 2021, compared to $223 for the fourth quarter of 2020
  • In the fourth quarter of 2021, 59.0% of total orders delivered were placed via a mobile device, compared to 59.9% in the fourth quarter of 2020

To view the full release, please visit the Wayfair website.

Source: Wayfair

Wayfair Introduces Partnership With Capital One to Provide Credit Solutions to Wayfair Professional Customers

Wayfair has announced that its business program, Wayfair Professional, has entered into a strategic partnership Capital One to offer a robust credit program for its Wayfair Professional members (Pros). With Capital One Trade Credit, Wayfair will offer a Wayfair Professional Credit Card with rewards and a Wayfair Professional Flex Account with extended payment terms for Wayfair Professional shoppers. The program will allow Pros to access increased purchasing power and improved payment flexibility as well as online account management tools, and is expected to be available to customers later this year.

“We’re very excited to have partnered with Capital One Trade Credit to begin offering a Wayfair Professional Credit Card and a Wayfair Professional Flex Account, which we expect to roll out later this year,” said Margaret Lawrence, vice president for Wayfair Professional. “Pros will be able to apply with their business credentials to build business credit, and we have built out a suite of business-specific features to help Pros take what used to be a complex process and consolidate it into a single partnership with Wayfair.”

Capital One Trade Credit provides customizable, B2B credit management solutions that enable partners to grow sales and delight customers with a tech-enabled purchase-to-payment experience. Over 1000 merchants across the U.S., both large and small, rely on Capital One Trade Credit’s ability to leverage customer-centred technology, premier products and services, and industry leading credit expertise.

Source: Wayfair