Online furnishings retailer Wayfair Inc., which recently became a publicly-traded company, announced earnings for its third quarter, reporting results its CEO is “very pleased” about: net revenue was up 42 percent from a year ago, among other developments.
“We believe we are making the right investments today to drive long-term growth, and remain committed to both creating the best home goods shopping experience for our customers and to delivering long term value for our investors,” said Niraj Shah, CEO, co-chairman and co-founder of the e-commerce giant.
A few highlights from the initial financial report:
• The third quarter of 2014 net revenue increased to $336.2 million, up 41.7 percent over the last year
• The Direct Retail business, consisting of sales generated primarily through the sites of its five brands, increased to $285.5 million in the third quarter of 2014. up 57.1 percent over the last year
• Gross profit for the third quarter of 2014 was $79.0 million, up from $58.6 million in the third quarter of 2013
• Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) for the third quarter of 2014 was $18.3 million, or 5.4 percent of revenue
• GAAP (generally accepted accounting principles) net loss per share was $0.71 in the third quarter of 2014, which compares to net loss per share of $0.19 in the third quarter of 2013
• At the end of the third quarter of 2014, cash, cash equivalents and investments totaled $130.4 million
• The number of active customers in the Direct Retail business reached 2.9 million as of September 30, up 61.0 percent over the last year
• LTM (last twelve months) net revenue per active customer increased to $342, up 8.6 percent over the last year and up 3.0 percent from the second quarter of 2014
• Orders per customer, measured as LTM orders divided by active customers, improved to 1.65 as of September 30, up from 1.55 in the third quarter of 2013
• Orders delivered in the third quarter of 2014 were 1.3 million, an increase of 48.6 percent over the past year
“Moving forward, we remain highly focused on driving growth by acquiring new customers and increasing repeat purchases from existing customers,” added Shah. “As in the past, we intend to do this by investing in our brands and the customer experience through improved site experiences, product offering and logistics. Overall, we are excited about our performance in the quarter and the strong continued growth at Wayfair.”
Throughout the past year, Wayfair has kept itself in the news by raising more than $150 million from private investors, raising an additional $36 million for its sister brand Joss & Main, acquiring the DwellStudio brand, launching the Birch Lane brand, offering an exclusive trade program for desginers, partnering with HGTV, and most recently going public.