Wayfair Inc (W, Financial), a leading online retailer for home goods, announced its financial results for the fourth quarter and full year ending December 31, 2024, on February 20, 2025. The company reported a total net revenue of $3.1 billion for Q4, marking a 0.2% increase year-over-year, and a full-year net revenue of $11.9 billion, a slight decrease of 1.3% from the previous year. Despite a net loss of $128 million in Q4, Wayfair achieved a Non-GAAP Adjusted EBITDA of $96 million, reflecting strong operational performance.
Positive Highlights
- Q4 net revenue increased by $7 million, up 0.2% year-over-year.
- U.S. net revenue rose by 1.1% to $2.7 billion in Q4.
- Gross profit for Q4 was $941 million, representing 30.2% of total net revenue.
- Non-GAAP Free Cash Flow for Q4 was $102 million.
- Cash, cash equivalents, and short-term investments totaled $1.4 billion.
Negative Highlights
- International net revenue decreased by 5.7% in Q4.
- Net loss for Q4 was $128 million, with a diluted loss per share of $1.02.
- Active customers decreased by 4.5% year-over-year to 21.4 million.
- Orders delivered in Q4 decreased by 5.3% year-over-year.
Financial Analyst Perspective
From a financial analyst's perspective, Wayfair's Q4 results demonstrate resilience in its core U.S. market, with a notable increase in net revenue. The company's ability to maintain a strong gross profit margin of 30.2% is commendable, especially in a challenging economic environment. However, the decline in international revenue and the overall net loss highlight areas for improvement. The positive cash flow and liquidity position provide a solid foundation for future growth and investment opportunities.
Market Research Analyst Perspective
As a market research analyst, Wayfair's performance in Q4 reflects a strategic focus on its U.S. operations, which have shown growth despite broader market challenges. The decrease in active customers and orders delivered suggests potential issues in customer retention and engagement. However, the increase in average order value and the high percentage of mobile orders indicate a shift towards higher-value transactions and mobile commerce, which could be leveraged for future growth.
Frequently Asked Questions (FAQ)
Q: What was Wayfair's total net revenue for Q4 2024?
A: Wayfair's total net revenue for Q4 2024 was $3.1 billion.
Q: How did Wayfair's U.S. net revenue perform in Q4 2024?
A: U.S. net revenue increased by 1.1% to $2.7 billion in Q4 2024.
Q: What was Wayfair's net loss for Q4 2024?
A: Wayfair reported a net loss of $128 million for Q4 2024.
Q: How many active customers did Wayfair have as of December 31, 2024?
A: Wayfair had 21.4 million active customers as of December 31, 2024.
Q: What was the average order value in Q4 2024?
A: The average order value in Q4 2024 was $290.
Read the original press release here.
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