Wayfair W reported third-quarter 2024 non-GAAP earnings of 22 cents per share, beating the Zacks Consensus Estimate by 46.67%. The company reported a loss of 13 cents per share in the year-ago quarter.

Net revenues of $2.88 billion beat the consensus mark by 0.04%. The top line decreased 2% year over year.

Last Twelve Months (LTM) net revenues per active customer decreased 1.3% year over year to $545, which beat the Zacks Consensus Estimate by 5.17%.

Further, the active customer base declined. The metric decreased 2.7% year over year to 21.7 million and missed the consensus mark by 4.51%.

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Wayfair Inc. Price, Consensus and EPS Surprise

Wayfair Inc. price-consensus-eps-surprise-chart | Wayfair Inc. Quote

Wayfair’s Q3 in Details

Net revenues in the United States (87.1% of total net revenues) decreased 2.33% year over year to $2.51 billion. The figure missed the Zacks Consensus Estimate by 0.34%.

International net revenues (12.9% of total net revenues) remained flat year over year and on a constant currency basis to $372 million. The number beat the consensus mark by 2.76%.

Orders per customer for the quarter were 1.85, up from 1.83 reported in the year-ago quarter. The figure beat the Zacks Consensus Estimate by 3.12%.

The average order value increased from $297 year over year to $310, which beat the consensus mark by 4.36%.

The total number of delivered orders in the reported quarter was 9.3 million, which decreased 6.1% year over year.

Repeat customers placed 7.4 million orders (accounting for 79.9% of total orders) in the third quarter, down 6.3% year over year.

Additionally, 63% of total delivered orders were placed through mobile devices in the reported quarter compared with 61.7% in the year-ago quarter.

Operating Results of Wayfair

Wayfair’s third-quarter gross margin was 30.27% compared with 31.15% in the year-ago quarter.

Adjusted EBITDA was $119 million, up from $100 million in the year-ago quarter.

Customer service and merchant fees decreased 17.6% year over year to $112 million.

Advertising expenses increased 5% year over year to $354 million. Selling, operations, technology and general and administrative expenses decreased 19.4% year over year to $480 million.

Wayfair incurred a GAAP operating loss of $74 million in the reported quarter compared with an operating loss of $163 million in the year-ago quarter.

Balance Sheet & Cash Flow of Wayfair

As of Sept. 30, 2024, cash, cash equivalents and short-term investments were $1.3 billion, down from $1.34 billion reported on June 30, 2024.

Long-term debt, as of Sept. 30, 2024, was $3.061 billion compared with $3.059 billion on June 30, 2024.

In the third quarter, cash from operations amounted to $49 million compared with $245 million used in operations in the second quarter.

Wayfair reported a negative free cash flow of $9 million in the third quarter.