Q3 Net Revenue of $2.9 billion with 22.3 million Active
Customers
BOSTON, Nov. 1, 2023
/PRNewswire/ -- Wayfair Inc. ("Wayfair," "we," or "our")
(NYSE: W), one of the world's largest destinations for the home,
today reported financial results for its third quarter ended
September 30, 2023.
Third Quarter 2023 Financial Highlights
- Total net revenue of $2.9 billion
increased $104 million, up 3.7% year
over year
- U.S. net revenue of $2.6 billion
increased $132 million, up 5.4% year
over year
- International net revenue of $372
million decreased $28 million,
down 7.0% year over year. International Net Revenue Constant
Currency Growth was (7.8)%
- Gross profit was $917 million, or
31.1% of total net revenue
- Net loss was $163 million and
Non-GAAP Adjusted EBITDA was $100
million
- Diluted loss per share was $1.40
and Non-GAAP Adjusted Diluted Loss Per Share was $0.13
- Net cash provided by operating activities was $121 million and Non-GAAP Free Cash Flow was
$42 million
- Cash, cash equivalents and short-term investments totaled
$1.3 billion and total liquidity was
$1.8 billion, including availability
under our revolving credit facility
"Wayfair is now in a place where we can drive profitability
while simultaneously investing for growth," said Niraj Shah CEO,
co-founder and co-chairman, Wayfair. "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."
"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."
Other Third Quarter Highlights
- Active customers totaled 22.3 million as of September 30, 2023, a decrease of 1.3% year over
year
- LTM net revenue per active customer was $538 as of September 30,
2023, a decrease of 1.6% year over year
- Orders per customer, measured as LTM orders divided by active
customers, was 1.83 for the third quarter of 2023, compared to 1.82
for the third quarter of 2022
- Orders delivered in the third quarter of 2023 were 9.9 million,
an increase of 13.8% year over year
- Repeat customers placed 79.7% of total orders delivered in the
third quarter of 2023, compared to 77.8% in the third quarter of
2022
- Repeat customers placed 7.9 million orders in the third quarter
of 2023, an increase of 16.2% year over year
- Average order value was $297 in
the third quarter of 2023, compared to $325 in the third quarter of 2022
- 61.7% of total orders delivered were placed via a mobile device
in the third quarter of 2023, compared to 58.6% in the third
quarter of 2022
Key Financial Statement and Operating Metrics
|
|
Three Months Ended
September 30,
|
|
Nine Months Ended
September 30,
|
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
|
|
|
|
|
|
|
|
|
|
(in millions, except
LTM net revenue per active customer, average order value and per
share data)
|
Key Financial
Statement Metrics:
|
|
|
|
|
|
|
|
|
Net revenue
|
|
$
2,944
|
|
$
2,840
|
|
$
8,889
|
|
$
9,117
|
Gross
profit
|
|
$
917
|
|
$
824
|
|
$
2,723
|
|
$
2,523
|
Loss from
operations
|
|
$
(152)
|
|
$
(372)
|
|
$
(641)
|
|
$
(1,054)
|
Net loss
|
|
$
(163)
|
|
$
(283)
|
|
$
(564)
|
|
$
(980)
|
Loss per
share:
|
|
|
|
|
|
|
|
|
Basic
|
|
$
(1.40)
|
|
$
(2.66)
|
|
$
(4.99)
|
|
$
(9.28)
|
Diluted
|
|
$
(1.40)
|
|
$
(2.66)
|
|
$
(4.99)
|
|
$
(9.28)
|
Net cash provided by
(used in) operating activities
|
|
$
121
|
|
$
(431)
|
|
$
191
|
|
$
(772)
|
Key Operating
Metrics:
|
|
|
|
|
|
|
|
|
Active customers
(1)
|
|
22
|
|
23
|
|
22
|
|
23
|
LTM net revenue per
active customer (2)
|
|
$
538
|
|
$
547
|
|
$
538
|
|
$
547
|
Orders delivered
(3)
|
|
10
|
|
9
|
|
30
|
|
29
|
Average order value
(4)
|
|
$
297
|
|
$
325
|
|
$
297
|
|
$
313
|
Non-GAAP Financial
Measures:
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
|
$
100
|
|
$
(124)
|
|
$
214
|
|
$
(345)
|
Free Cash
Flow
|
|
$
42
|
|
$
(538)
|
|
$
(64)
|
|
$
(1,113)
|
Adjusted Diluted Loss
per Share
|
|
$
(0.13)
|
|
$
(2.11)
|
|
$
(1.02)
|
|
$
(5.99)
|
|
|
(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
third quarter 2023 financial results today at 8 a.m. (ET).
Investors and participants should register for the call in advance
by visiting https://bit.ly/3ZHcY9j. After registering, instructions
will be shared on how to join the call. The call will also be
available via live webcast at https://bit.ly/45astrD. 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: helping
everyone, anywhere create their feeling of home. From expert
customer service, to the development of tools that make the
shopping process easier, to carrying one of the widest and deepest
selections of items for every space, style, and budget, Wayfair
gives everyone the power to create spaces that are just right for
them.
The Wayfair family of sites includes:
- Wayfair: Everything home — for a space that's all
you.
- Joss & Main: The ultimate style edit for
home.
- AllModern: All of modern, made simple.
- Birch Lane: A fresh take on the classics.
- Perigold: An undiscovered world of luxury
design.
- Wayfair Professional: Just right for
Pros.
Wayfair generated $12.0 billion in net revenue for the twelve
months ended September 30, 2023 and is headquartered in
Boston, Massachusetts with global
operations.
Media Relations Contact:
Claire Gorman
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 and
anticipated returns on those investments, our future customer
growth, our future results of operations and financial position,
including our financial outlook, profitability goals, business
strategy, plans and objectives of management for future operations,
and, the impact of macroeconomic factors, and our response to such
events, are forward-looking statements. In some cases, you can
identify forward-looking statements by terms such as "may," "will,"
"should," "expects," "plans," "anticipates," "continues," "could,"
"intends," "goals," "target," "projects," "contemplates,"
"believes," "estimates," "predicts," "potential" or "continue" 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 inflation, slower growth or the
potential for recession; disruptions in the global supply chain;
conditions affecting the retail environment for products we sell,
and other matters that influence consumer spending and preferences;
our ability to acquire and retain customers in a cost-effective
manner; our ability to increase our net revenue per active
customer; our ability to build and maintain strong brands; our
ability to manage our growth and expansion initiatives; and our
ability to expand our business and compete successfully. A further
list and description of risks, uncertainties and other factors that
could cause or contribute to differences in our future results
include the cautionary statements herein and in our most recent
Annual Report on Form 10-K for the year ended December 31, 2022 and in our other filings and
reports with the Securities and Exchange Commission. We qualify all
of our forward-looking statements by these cautionary
statements.
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.
CONDENSED
CONSOLIDATED BALANCE SHEETS
(Unaudited)
|
|
|
|
September
30,
|
|
December
31,
|
|
|
2023
|
|
2022
|
|
|
|
|
|
|
|
(in millions, except
share and per share data)
|
Assets:
|
|
|
|
|
Current
assets
|
|
|
|
|
Cash and cash
equivalents
|
|
$
1,281
|
|
$
1,050
|
Short-term
investments
|
|
—
|
|
228
|
Accounts receivable,
net
|
|
132
|
|
272
|
Inventories
|
|
79
|
|
90
|
Prepaid expenses and
other current assets
|
|
292
|
|
293
|
Total current
assets
|
|
1,784
|
|
1,933
|
Operating lease
right-of-use assets
|
|
778
|
|
839
|
Property and equipment,
net
|
|
751
|
|
774
|
Other non-current
assets
|
|
47
|
|
34
|
Total
assets
|
|
$
3,360
|
|
$
3,580
|
Liabilities and
Stockholders' Deficit:
|
|
|
|
|
Current
liabilities
|
|
|
|
|
Accounts
payable
|
|
$
1,173
|
|
$
1,204
|
Other current
liabilities
|
|
823
|
|
868
|
Total current
liabilities
|
|
1,996
|
|
2,072
|
Long-term
debt
|
|
3,207
|
|
3,137
|
Operating lease
liabilities, net of current
|
|
827
|
|
893
|
Other non-current
liabilities
|
|
38
|
|
28
|
Total
liabilities
|
|
6,068
|
|
6,130
|
Stockholders'
deficit:
|
|
|
|
|
Convertible preferred
stock, $0.001 par value per share: 10,000,000 shares
authorized
and none issued at
September 30, 2023 and December 31, 2022
|
|
—
|
|
—
|
Class A common stock,
par value $0.001 per share, 500,000,000 shares
authorized,
90,489,548 and
82,903,862 shares issued and outstanding at September 30, 2023 and
December 31, 2022
|
|
—
|
|
—
|
Class B common stock,
par value $0.001 per share, 164,000,000 shares
authorized,
25,691,295 and
25,691,397 shares issued and outstanding at September 30, 2023 and
December 31, 2022
|
|
—
|
|
—
|
Additional paid-in
capital
|
|
1,142
|
|
737
|
Accumulated
deficit
|
|
(3,844)
|
|
(3,280)
|
Accumulated other
comprehensive loss
|
|
(6)
|
|
(7)
|
Total
stockholders' deficit
|
|
(2,708)
|
|
(2,550)
|
Total
liabilities and stockholders' deficit
|
|
$
3,360
|
|
$
3,580
|
WAYFAIR
INC.
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
|
|
|
|
Three Months Ended
September 30,
|
|
Nine Months Ended
September 30,
|
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
|
|
|
|
|
|
|
|
|
|
(in millions, except
per share data)
|
Net revenue
(1)
|
|
$
2,944
|
|
$
2,840
|
|
$
8,889
|
|
$
9,117
|
Cost of goods sold
(2)
|
|
2,027
|
|
2,016
|
|
6,166
|
|
6,594
|
Gross profit
|
|
917
|
|
824
|
|
2,723
|
|
2,523
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
Customer service and
merchant fees (2)
|
|
136
|
|
156
|
|
419
|
|
469
|
Advertising
|
|
337
|
|
353
|
|
1,016
|
|
1,067
|
Selling, operations,
technology, general and administrative (2)
|
|
596
|
|
656
|
|
1,850
|
|
1,970
|
Impairment and other
related net charges
|
|
—
|
|
—
|
|
14
|
|
40
|
Restructuring
charges
|
|
—
|
|
31
|
|
65
|
|
31
|
Total operating
expenses
|
|
1,069
|
|
1,196
|
|
3,364
|
|
3,577
|
Loss from
operations
|
|
(152)
|
|
(372)
|
|
(641)
|
|
(1,054)
|
Interest expense,
net
|
|
(5)
|
|
(5)
|
|
(15)
|
|
(19)
|
Other expense,
net
|
|
(4)
|
|
(1)
|
|
(2)
|
|
—
|
Gain on debt
extinguishment
|
|
—
|
|
96
|
|
100
|
|
96
|
Loss before income
taxes
|
|
(161)
|
|
(282)
|
|
(558)
|
|
(977)
|
Provision for income
taxes, net
|
|
2
|
|
1
|
|
6
|
|
3
|
Net loss
|
|
$
(163)
|
|
$
(283)
|
|
$
(564)
|
|
$
(980)
|
Loss per
share:
|
|
|
|
|
|
|
|
|
Basic
|
|
$
(1.40)
|
|
$
(2.66)
|
|
$
(4.99)
|
|
$
(9.28)
|
Diluted
|
|
$
(1.40)
|
|
$
(2.66)
|
|
$
(4.99)
|
|
$
(9.28)
|
Weighted-average number
of shares of common stock
outstanding used in
computing per share amounts:
|
|
|
|
|
|
|
|
|
Basic
|
|
116
|
|
106
|
|
113
|
|
106
|
Diluted
|
|
116
|
|
106
|
|
113
|
|
106
|
|
(1) The
following tables present net revenue attributable to our reportable
segments for the periods indicated:
|
|
|
|
Three Months Ended
September 30,
|
|
Nine Months Ended
September 30,
|
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
|
|
|
|
|
|
|
|
|
|
(in
millions)
|
U.S. net
revenue
|
|
$
2,572
|
|
$
2,440
|
|
$
7,772
|
|
$
7,778
|
International net
revenue
|
|
372
|
|
400
|
|
1,117
|
|
1,339
|
Total net
revenue
|
|
$
2,944
|
|
$
2,840
|
|
$
8,889
|
|
$
9,117
|
|
(2) Includes
equity-based compensation and related taxes as follows
|
|
|
|
Three Months Ended
September 30,
|
|
Nine Months Ended
September 30,
|
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
|
|
|
|
|
|
|
|
|
|
(in
millions)
|
Cost of goods
sold
|
|
$
2
|
|
$
2
|
|
$
7
|
|
$
8
|
Customer service and
merchant fees
|
|
7
|
|
8
|
|
23
|
|
25
|
Selling, operations,
technology, general and administrative
|
|
137
|
|
113
|
|
434
|
|
335
|
Total equity-based
compensation and related taxes
|
|
$
146
|
|
$
123
|
|
$
464
|
|
$
368
|
WAYFAIR
INC.
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
|
|
|
Nine Months Ended
September 30,
|
|
|
2023
|
|
2022
|
|
|
|
|
|
|
|
(in
millions)
|
Cash flows from
(for) operating activities:
|
|
|
|
|
Net loss
|
|
$
(564)
|
|
$
(980)
|
Adjustments to
reconcile net loss to net cash provided by (used in) operating
activities:
|
|
|
|
|
Depreciation
and amortization
|
|
312
|
|
270
|
Equity-based
compensation expense
|
|
447
|
|
355
|
Amortization of
discount and issuance costs on convertible notes
|
|
6
|
|
7
|
Impairment and
other related net charges
|
|
14
|
|
40
|
Gain on debt
extinguishment
|
|
(100)
|
|
(96)
|
Other non-cash
adjustments
|
|
—
|
|
20
|
Changes in
operating assets and liabilities:
|
|
|
|
|
Accounts receivable,
net
|
|
140
|
|
(113)
|
Inventories
|
|
11
|
|
(35)
|
Prepaid expenses and
other current assets
|
|
17
|
|
39
|
Other
assets
|
|
2
|
|
—
|
Accounts payable and
other current liabilities
|
|
(106)
|
|
(294)
|
Other
liabilities
|
|
12
|
|
15
|
Net cash
provided by (used in) operating activities
|
|
191
|
|
(772)
|
|
|
|
|
|
Cash flows for
investing activities:
|
|
|
|
|
Purchase of short- and
long-term investments
|
|
(4)
|
|
(420)
|
Sale and maturities of
short- and long-term investments
|
|
229
|
|
550
|
Purchase of property
and equipment
|
|
(101)
|
|
(136)
|
Site and software
development costs
|
|
(154)
|
|
(205)
|
Net cash used
in investing activities
|
|
(30)
|
|
(211)
|
|
|
|
|
|
Cash flows from
financing activities:
|
|
|
|
|
Repurchase of common
stock
|
|
—
|
|
(75)
|
Proceeds from issuance
of convertible notes, net of issuance costs
|
|
678
|
|
678
|
Premiums paid for
capped call confirmations
|
|
(87)
|
|
(80)
|
Payment of principal
upon maturity of convertible debt
|
|
—
|
|
(3)
|
Payments to extinguish
convertible debt
|
|
(514)
|
|
(504)
|
Net cash
provided by financing activities
|
|
77
|
|
16
|
Effect of exchange
rate changes on cash, cash equivalents and restricted
cash
|
|
3
|
|
(8)
|
Net increase
(decrease) in cash, cash equivalents and restricted cash
|
|
241
|
|
(975)
|
|
|
|
|
|
Cash, cash
equivalents and restricted cash
|
|
|
|
|
Beginning of
period
|
|
$
1,050
|
|
$
1,706
|
End of
period
|
|
$
1,291
|
|
$
731
|
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 for each of the periods indicated:
|
|
|
|
|
Three Months Ended
September 30,
|
|
Nine Months Ended
September 30,
|
|
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in
millions)
|
Reconciliation of
Adjusted EBITDA:
|
|
|
|
|
|
|
|
|
Net loss
|
|
$
(163)
|
|
$
(283)
|
|
$
(564)
|
|
$
(980)
|
Depreciation and
amortization
|
|
106
|
|
94
|
|
312
|
|
270
|
Equity-based
compensation and related taxes
|
|
146
|
|
123
|
|
464
|
|
368
|
Interest expense,
net
|
|
5
|
|
5
|
|
15
|
|
19
|
Other expense,
net
|
|
4
|
|
1
|
|
2
|
|
—
|
Provision for income
taxes, net
|
|
2
|
|
1
|
|
6
|
|
3
|
Other:
|
|
|
|
|
|
|
|
|
Impairment and other
related net charges (1)
|
|
—
|
|
—
|
|
14
|
|
40
|
Restructuring charges
(2)
|
|
—
|
|
31
|
|
65
|
|
31
|
Gain on debt
extinguishment (3)
|
|
—
|
|
(96)
|
|
(100)
|
|
(96)
|
Adjusted
EBITDA
|
|
$
100
|
|
$
(124)
|
|
$
214
|
|
$
(345)
|
|
|
|
|
|
|
|
|
|
|
(1)
|
During the nine months
ended September 30, 2023, we recorded charges of $14 million,
inclusive of $5 million related to consolidation of certain
customer service centers and $9 million related to construction in
progress assets at identified U.S. locations. During the nine
months ended September 30, 2022, we recorded $40 million
of lease impairment and other charges related to changes in market
conditions around future sublease income for one office location in
the U.S.
|
(2)
|
During the nine months
ended September 30, 2023, we incurred $65 million of
charges consisting primarily of one-time employee severance and
benefit costs associated with the January 2023 workforce
reductions. During the three and nine months ended September 30,
2022, we incurred $31 million of charges consisting primarily
of one-time employee severance and benefit costs associated with
the August 2022 workforce reductions.
|
(3)
|
During the nine months
ended September 30, 2023, we recorded a $100 million gain
on debt extinguishment upon repurchase of $83 million in
aggregate principal amount of our 2024 Notes and $535 million
in aggregate principal amount of our 2025 Notes. During the three
and nine months ended September 30, 2022, we recorded a $96
million gain on debt extinguishment upon repurchase of $375
aggregate principal amount of the 2024 Notes and $229 million in
aggregate principal amount of the 2025 Notes.
|
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
September 30,
|
|
Nine Months Ended
September 30,
|
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
|
|
|
|
|
|
|
|
|
|
(in
millions)
|
Segment Adjusted
EBITDA:
|
|
|
|
|
|
|
|
|
U.S.
|
|
$
123
|
|
$
(51)
|
|
$
313
|
|
$
(109)
|
International
|
|
(23)
|
|
(73)
|
|
(99)
|
|
(236)
|
Adjusted
EBITDA
|
|
$
100
|
|
$
(124)
|
|
$
214
|
|
$
(345)
|
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
September 30,
|
|
Nine Months Ended
September 30,
|
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
|
|
|
|
|
|
|
|
|
|
(in
millions)
|
Net cash provided by
(used in) operating activities
|
|
$
121
|
|
$
(431)
|
|
$
191
|
|
$
(772)
|
Purchase of property
and equipment
|
|
(30)
|
|
(43)
|
|
(101)
|
|
(136)
|
Site and software
development costs
|
|
(49)
|
|
(64)
|
|
(154)
|
|
(205)
|
Free Cash
Flow
|
|
$
42
|
|
$
(538)
|
|
$
(64)
|
|
$
(1,113)
|
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
September 30,
|
|
Nine Months Ended
September 30,
|
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
|
|
|
|
|
|
|
|
|
|
(in millions, except
per share data)
|
Numerator:
|
|
|
|
|
|
|
|
|
Numerator for basic and
diluted loss per share - net loss
|
|
$
(163)
|
|
$
(283)
|
|
$
(564)
|
|
$
(980)
|
Adjustments to net
loss
|
|
|
|
|
|
|
|
|
Equity-based
compensation and related taxes
|
|
146
|
|
123
|
|
464
|
|
368
|
Provision for income
taxes, net
|
|
2
|
|
1
|
|
6
|
|
3
|
Other:
|
|
|
|
|
|
|
|
|
Impairment and other
related net charges
|
|
—
|
|
—
|
|
14
|
|
40
|
Restructuring
charges
|
|
—
|
|
31
|
|
65
|
|
31
|
Gain on debt
extinguishment
|
|
—
|
|
(96)
|
|
(100)
|
|
(96)
|
Numerator for Adjusted
Diluted Loss per Share - Adjusted net loss
|
|
$
(15)
|
|
$
(224)
|
|
$
(115)
|
|
$
(634)
|
|
|
|
|
|
|
|
|
|
Denominator:
|
|
|
|
|
|
|
|
|
Denominator for basic
and diluted loss per share -
weighted-average number
of shares of common stock outstanding
|
|
116
|
|
106
|
|
113
|
|
106
|
Denominator for
Adjusted Diluted Loss per Share - Adjusted
weighted-average number
of shares of common stock outstanding
after the effect of
dilutive securities
|
|
116
|
|
106
|
|
113
|
|
106
|
Diluted Loss per
Share
|
|
$
(1.40)
|
|
$
(2.66)
|
|
$
(4.99)
|
|
$
(9.28)
|
Adjusted Diluted Loss
per Share
|
|
$
(0.13)
|
|
$
(2.11)
|
|
$
(1.02)
|
|
$
(5.99)
|
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SOURCE Wayfair, LLC