Wayfair Inc. reported its financial results for the third quarter and the nine months ended September 30, 2024, revealing a decline in net revenue and ongoing challenges in the market. For Q3 2024, the company generated net revenue of $2,884 million, a decrease of 2.0% from $2,944 million in Q3 2023. For the nine months ended September 30, 2024, net revenue totaled $8,730 million, down from $8,889 million in the same period last year. The decline in revenue was attributed to lower order volume, particularly in certain product categories.
Gross profit for Q3 2024 was $873 million, compared to $917 million in Q3 2023, while gross profit for the nine months ended September 30, 2024, was $2,633 million, down from $2,723 million in the prior year. Operating expenses decreased significantly to $947 million in Q3 2024 from $1,069 million in Q3 2023, and for the nine months, they fell to $2,977 million from $3,364 million. This reduction in operating expenses was primarily due to decreased compensation costs and a reduction in equity-based compensation.
Wayfair reported a loss from operations of $(74) million for Q3 2024, an improvement from $(152) million in Q3 2023. The net loss for the quarter was $(74) million, compared to $(163) million in the same period last year. For the nine months ended September 30, 2024, the net loss was $(364) million, an improvement from $(564) million in the prior year. Basic loss per share for Q3 2024 was $(0.60), compared to $(1.40) in Q3 2023.
The company’s total current assets decreased to $1,812 million as of September 30, 2024, from $1,855 million at the end of 2023. Total assets also declined to $3,414 million from $3,474 million. Wayfair's accumulated deficit worsened to $(4,382) million from $(4,018) million at the end of 2023, while total stockholders' deficit increased to $(2,733) million from $(2,707) million.
Strategically, Wayfair incurred restructuring charges of $79 million during the nine months ended September 30, 2024, primarily due to a workforce reduction of approximately 1,650 employees announced in January 2024. The company is also under review by the Canada Border Services Agency regarding duties paid, with an estimated potential liability of approximately $33 million.
Wayfair's cash and cash equivalents totaled $1,296 million as of September 30, 2024, with a senior secured revolving credit facility of $600 million, and no revolving loans outstanding. The company issued $800 million in senior secured notes due 2029 on October 8, 2024, to repay existing notes and for general corporate purposes.
About Wayfair Inc.
About 10-Q Filings
A 10-Q form is an important financial report that public companies in the United States must submit every three months. It gives a clear picture of a company's financial health and recent performance.
Key points about the 10-Q:
- Frequency: Companies file it three times a year, covering the first three quarters. The fourth quarter is covered in a more comprehensive annual report.
-
Content: It includes:
- Financial statements showing the company's current financial position
- Updates from management on the performance and projections of the business
- Information about potential risks the company faces
- Details on how the company is run internally
- Deadline: Must be filed within 40 or 45 days after the quarter ends, depending on the size of the company.
Our Methodology
AssetRoom is committed to providing timely summaries of news from public companies. We use AI to generate these summaries quickly, but they are not reviewed by human experts.
Our method:
- Data Collection: We continuously monitor for new filings (currently limited to US-listed stocks).
- AI-Powered Analysis: Our advanced AI system processes each filing, identifying key information and extracting relevant data.
- Summary Generation: The AI creates a concise, easy-to-understand summary of the filing, highlighting the most important points.
- Publication: The summary is immediately published on our platform, allowing users instant access to the latest information.
- Email users: We distribute round-up emails according to our users preferences, keeping them in the loop with the companies they follow.
Feedback & Corrections
Spot an error or have a suggestion? Contact us.