Wayfair post Q4 revenue gain, while total year revenue dips
Wayfair ends 2024 "on a high note" with a bump in revenue for the fourth quarter, although the company finished the year with lower total revenues.
BOSTON — Wayfair ended 2024 “on a high note,” said CEO Niraj Shah, as the e-commerce home furnishings retailer booked a $7 million increase in total net revenue for the fourth quarter.
U.S. net revenue grew by 1.1% in the quarter, up $30 million to $2.7 billion, while the total net revenue increase was a more modest 0.2% gain to $3.1 billion, as international net revenue fell by $23 million, or 5.7% year-over-year. Diluted loss per share was $1.02, with the non-GAAP adjusted diluted loss per share at 25 cents.
For the full year, total revenue was down 1.3% to $11.9 billion, with U.S. net revenue off by 1%, or $109 million, for a total of $10.4 billion. For the year, gross profit was $3.6 million, or 30.2% of total revenue. Non-GAAP adjusted EBITDA was $453 million.
“The fourth quarter was a strong conclusion to the year across multiple fronts,” said Shah, who is also co-founder and co-chairman at Wayfair. The positive net revenue growth, he said, “enabled us to drive nearly $100 million of adjusted EBITDA in the quarter and deliver on our goal of approximately 50% year-over-year dollar growth for 2024.
“Our strong financial performance enabled us to tap into high-yield markets for the first time,” added Shah. “We’re making smart, high-return investments across the business and at the same time remain committed to growing adjusted EBITDA dollars year-over-year. We are confident this approach sets us up well for a compelling payoff over 2025.”
Wayfair’s active customers totaled 21.4 million at the end of the quarter, a decrease of 4.5% from the final quarter of 2023. The past 12 months net revenue per active customer was $555, up 3.4% year-over-year, while orders per customer stayed mainly unchanged: 1.85 in Q4 2024 vs. 1.84 in the same quarter of 2023. Average order value rose to $290 in Q4 2024, up from $276 in 2023.
Gross profit for the quarter was $941 million, or 30.2% of total net revenue. Non-GAAP adjusted EBITDA was $96 million vs. $92 million in fourth quarter of 2023.
During the company’s earnings call, Shah said ignoring the holidays and the bump they provide, the industry is seeing a “a relatively weak market; January was weak, February is weaker.” The market hasn’t changed significantly, he said, and while it is nearing the bottom in terms of slow sales, there is no catalyst to send it up right away.
Shah also noted that, although the home furnishings industry is in a period of high unpredictability, “what is more predictable is our ability to outperform the competition.” He cited three key undertakings by Wayfair to support this: investment in its CastleGate logistics network; curation of its product assortment, aided by Wayfair Verified; and the addition of its retail stores.
Wayfair Verified, which offers select products that are merchant team verified, drove a 15% increase in in visits per SKU and 20 times more revenue per SKU, Shah noted. Meanwhile, the addition of the Wayfair flagship store in suburban Chicago helped fuel 15% more growth in Illinois vs. the U.S. overall, he added.
When asked about tariffs, Shah said the company works with suppliers, which — in response to previous tariffs, especially those on China — now source from a wide range of countries ranging from Vietnam, Cambodia and Malaysia to growing areas such as India, Brazil and Turkey. “We, as a platform, buy from everyone,” he said.
He said suppliers “get advantaged or disadvantaged” depending on various factors, including tariffs and freight rates.
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