The third quarter saw Wayfair top a Wall Street estimate on earnings as revenues came up a bit short.
Net loss was $163 million, or $1.40 per diluted share versus a net loss of $283 million, or $2.66 per diluted share, in the year-prior quarter. Adjusted for one-time events, net loss was $15 million, or 13 cents per diluted share, versus $224 million, or 2.11 per diluted share, in the year-previous period, the company reported.
An analyst consensus estimate published by Yahoo Finance had Wayfair losing 48 cents per adjusted diluted share and revenues coming in at $2.98 billion.
Total third quarter net revenue of $2.94 billion was up 3.7% year over year as net revenue from the United States came in at $2.57 billion, up 5.4% from the year-earlier period, Wayfair stated. Loss from operations was $152 million versus a loss from operations of $372 million in the year-before quarter.
“Wayfair is now in a place where we can drive profitability while simultaneously investing for growth,” said Niraj Shah Wayfair CEO, co-founder and co-chairman. “Q3 is one more proof point of exactly that. Today we’re reporting positive adjusted EBITDA of $100 million, a second consecutive quarter of positive free cash flow and nearly four percent year-over-year revenue growth driven by strength in orders. We also saw steady improvement in our active customer metric, which is well on its way to positive year-over-year growth.”
Shah added, “We executed further in the third quarter to produce consistent profitability, with adjusted EBITDA now positive on a trailing 12 month basis, while also driving demonstrable market share growth, as evidenced by our gains on customers and orders. Even with a turbulent macro, we remain committed to our profitability goals in good times and bad. We will continue to drive peerless focus and execution into 2024 and beyond, as we push every day to be the number one shopping destination for the home.”
