Q4 Direct Retail Revenue Growth of 55.2% Year over Year to $346.7
million
Full Year Direct Retail Revenue Growth of 63.6% Year over Year to
$1.1billion
Total Revenue Growth of 44.0% Year over Year to $1.3 billion
3.2 Million Active Customers, up 53.8% Year over Year
BOSTON--(BUSINESS WIRE)--
Wayfair Inc. (NYSE:W), one of the world’s largest online destinations
for home furnishings and décor, today reported financial results for its
fourth quarter and full fiscal year ended December 31, 2014.
Fourth Quarter 2014 Financial Highlights
-
Net revenue increased to $408.6 million, up 38.4% year over year
-
Direct Retail revenue, consisting of sales generated primarily through
the sites of Wayfair’s five brands, increased to $346.7 million, up
55.2 % year over year
-
Gross profit was $98.4 million or 24.1% of revenue, compared to 23.9%
of revenue in the same quarter last year
-
Adjusted EBITDA was $(7.2) million
-
GAAP basic and diluted net loss per share was $0.73
-
Non GAAP diluted net loss per share was $0.18
-
Non GAAP free cash flow was $50.8 million
-
At the end of the Fourth Quarter, cash, cash equivalents, and
short-term investments totaled $415.9 million
Full Year 2014 Financial Highlights
-
Net revenue increased to $1.3 billion, up 44.0% year over year
-
Direct Retail revenue increased to $1.1 billion, up 63.6% year over
year
-
Adjusted EBITDA was $(62.5) million
-
Non GAAP diluted net loss per share was $1.02 for the year
-
Non GAAP free cash flow for the year was $(41.9) million
“We’re very pleased with the fourth quarter and full year results and
the company’s continued strong growth,” said Niraj Shah, co-founder, CEO
and co-chairman of Wayfair. “We are particularly excited about the
success of our holiday merchandising efforts and our ongoing customer
growth. We remain committed to both building the market leading online
home brands and to delivering long term value for investors.”
Other Highlights
-
The number of active customers in our Direct Retail business reached
3.2 million as of December 31, 2014, up 53.8% year over year
-
Aided brand awareness reached 55% in December 2014, up from 36% in
December of 2013
-
LTM Net revenue per active customer increased to $342, up 6.2% year
over year
-
Orders per customer, measured as LTM orders divided by active
customers, increased to 1.63 for the Fourth Quarter, up from 1.58 year
over year
-
Repeat customers placed 50.3% of total orders in the Fourth Quarter of
2014, compared to 46.8% in the Fourth Quarter of 2013
-
Orders delivered in the Fourth Quarter of 2014 were 1.7 million, a
45.1% increase year over year
-
Total orders delivered in 2014 increased to 5.2 million, up from 3.3
million in 2013
-
Average order value was $204 for the Fourth Quarter 2014, up from $191
year over year
-
In 2014, approximately 29% of total orders delivered for our Direct
Retail business were placed via a mobile device
Financial Guidance
The following forward-looking statements reflect Wayfair's expectations
as of March 4, 2015.
Expectations for the First Quarter of 2015 (Quarter Ending March 31,
2015):
-
Total net revenue of $375 to $390 million, comprised of Direct Retail
net revenue of $330 to $340 million and Other revenue of $45 to $50
million
-
Adjusted EBITDA margin of negative 3.5% to 4.0%
Conference Call
Wayfair will host a conference call and webcast to discuss its Fourth
Quarter and Full Year 2014 financial results today at 8 a.m. (ET).
Investors and participants can access the call by dialing (877) 201-0168
in the U.S. and (647) 788-4901 internationally. The passcode for the
conference line is 77723306. The call will also be available via live
webcast at investor.wayfair.com. An archive of the webcast conference
call will be available shortly after the call ends. The archived webcast
will be available at investor.wayfair.com.
About Wayfair
Wayfair Inc. offers an extensive selection of home furnishings and décor
across all styles and price points. The Wayfair family of brands
includes:
-
Wayfair.com, an online destination for all things home
-
Joss & Main, an online flash sales site offering inspiring home design
daily
-
AllModern, a go-to online source for modern design
-
DwellStudio, a design house for fashion-forward modern furnishings
-
Birch Lane, a collection of classic furnishings and timeless home décor
Wayfair is headquartered in Boston, Massachusetts, with additional
locations in New York, Ogden, Utah, Hebron, Kentucky, Galway, Ireland,
London, Berlin and Sydney.
Forward-Looking Statements
This earnings release contains "forward-looking statements" within the
meaning of the "safe harbor" provisions of the Private Securities
Litigation Reform Act of 1995, including but not limited to, statements
regarding the objectives of management and the Company's financial
guidance for the first quarter of 2015. These forward-looking statements
are made as of the date they were first issued and were based on current
expectations, estimates, forecasts and projections as well as the
beliefs and assumptions of management. Words such as "expect,"
"anticipate," "should," "believe," "hope," "target," "project," "goals,"
"estimate," "potential," "predict," "may," "will," "might," "could,"
"intend," variations of these terms or the negative of these terms and
similar expressions are intended to identify these forward-looking
statements. Forward-looking statements are subject to a number of risks
and uncertainties, many of which involve factors or circumstances that
are beyond the Company's control. The Company's actual results could
differ materially from those stated or implied in forward-looking
statements due to a number of factors, including but not limited to: our
ability to acquire new customers, our ability to sustain and/or manage
our growth, our ability to increase our net revenue per active customer,
our ability to build and maintain strong brands and other risks detailed
in the Company's other publicly available filings with the Securities
and Exchange Commission. The forward-looking statements included in this
earnings release represent the Company's views as of the date of this
earnings release. The Company anticipates that subsequent events and
developments will cause its views to change. The Company undertakes no
intention or obligation to update or revise any forward-looking
statements, whether as a result of new information, future events or
otherwise.
EXPLANATORY NOTE
The condensed consolidated financial statements and other disclosures
contained in this earnings release are those of Wayfair Inc. Prior to
the effectiveness of Wayfair’s registration statement on Form S-1
related to its initial public offering in October 2014, Wayfair LLC was
the principal operating entity. In connection with the initial public
offering of Wayfair Inc., Wayfair LLC completed an internal
restructuring pursuant to which Wayfair LLC became a wholly-owned
subsidiary of Wayfair Inc., and the holders of equity interests in
Wayfair LLC became stockholders of Wayfair Inc.
Non-GAAP Financial Measures
To supplement Wayfair’s 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, free cash flow, non-GAAP diluted
net loss per share and non-GAAP diluted net loss per share adjusted for
shares issued and shares converted at the IPO. Wayfair uses these
non-GAAP financial measures internally in analyzing its financial
results and believes they are useful to investors, as a supplement to
GAAP measures, in evaluating Wayfair’s ongoing operational performance.
Wayfair has provided a reconciliation of these non-GAAP financial
measures to the most directly comparable GAAP financial measure in this
earnings release.
Adjusted EBITDA is a non-GAAP financial measure that is calculated as
earnings (loss) before depreciation and amortization, equity-based
compensation and related taxes, interest and other income and expense
and taxes. Wayfair has included Adjusted EBITDA in this earnings release
because it is a key measure used by its management and its board of
managers to evaluate its operating performance, generate future
operating plans and make strategic decisions regarding the allocation of
capital. In particular, the exclusion of certain expenses in calculating
Adjusted EBITDA facilitates operating performance comparisons on a
period-to-period basis and, in the case of exclusion of the impact of
equity-based compensation and related taxes, excludes an item that we do
not consider to be indicative of our core operating performance.
Investors should, however, understand that equity-based compensation
will be a significant recurring expense in our business and an important
part of the compensation provided to our employees. Accordingly, Wayfair
believes 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 managers.
Free cash flow is a non GAAP financial measure that is calculated as net
cash (used in) provided by operating activities less net cash used to
purchase property and equipment including leasehold improvements and
site and software development costs. Wayfair believes free cash flow is
an important indicator of Wayfair’s business performance, as it measures
the amount of cash it generates. Accordingly, Wayfair believes that free
cash flow provides useful information to investors and others in
understanding and evaluating its operating results in the same manner as
its management.
Non-GAAP diluted net loss per share is a non-GAAP financial measure that
is calculated as GAAP net loss attributable to common stockholders plus
accretion of convertible redeemable preferred units, equity-based
compensation and related taxes divided by non-GAAP weighted average
shares. Wayfair believes that adding back accretion of convertible
redeemable preferred units, equity-based compensation expense and
related tax adjustments to its GAAP diluted net loss before calculating
per share amounts for all periods presented provides a more meaningful
comparison between our operating results from period to period. For the
fourth quarter of 2014 and full year 2014, Wayfair has included non-GAAP
diluted net loss per share on a pro forma basis and assumes the
conversion of all outstanding preferred stock, the issuance of common
stock at its IPO in October 2014 along with the vesting of restricted
shares and restricted share units, net of applicable taxes, as if these
events all occurred at the beginning of the respective periods and
presented as such only for three months and full year ended December 31,
2014. As a result of significant changes to Wayfair’s capital structure
in the most recent quarter, Wayfair believes that the presentation of
the non-GAAP diluted net loss per share on a pro forma basis provides
useful information to investors and others.
Wayfair does not itself, nor does it 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 used by
Wayfair 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 its industry.
The following table reflects the reconciliation of net loss to Adjusted
EBITDA for each of the periods indicated:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended December 31,
|
|
|
Year Ended December 31,
|
|
|
|
|
|
2014
|
|
2013
|
|
|
2014
|
|
2013
|
|
|
|
|
|
(in thousands)
|
Reconciliation of Adjusted EBITDA
|
|
|
|
|
|
|
|
|
|
|
|
Net loss
|
|
|
$
|
(72,554
|
)
|
|
$
|
(4,157
|
)
|
|
|
$
|
(148,098
|
)
|
|
$
|
(15,526
|
)
|
|
|
Depreciation and amortization
|
|
|
|
7,565
|
|
|
|
3,739
|
|
|
|
|
22,003
|
|
|
|
13,091
|
|
|
|
Equity based compensation and related taxes
|
|
|
|
57,716
|
|
|
|
-
|
|
|
|
|
63,244
|
|
|
|
-
|
|
|
|
Interest income, net
|
|
|
|
(128
|
)
|
|
|
(60
|
)
|
|
|
|
(350
|
)
|
|
|
(245
|
)
|
|
|
Other (expenses) income, net
|
|
|
|
84
|
|
|
|
(219
|
)
|
|
|
|
489
|
|
|
|
(294
|
)
|
|
|
Taxes
|
|
|
|
99
|
|
|
|
50
|
|
|
|
|
175
|
|
|
|
46
|
|
Adjusted EBITDA
|
|
|
$
|
(7,218
|
)
|
|
$
|
(647
|
)
|
|
|
$
|
(62,537
|
)
|
|
$
|
(2,928
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
A reconciliation of GAAP net loss attributable to common stockholders to
non-GAAP diluted net loss attributable to common stockholders, the most
directly comparable GAAP financial measure, and GAAP diluted common
shares to non-GAAP diluted shares, the most directly comparable GAAP
financial measure, in order to calculate non-GAAP diluted net loss per
share, is as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended December 31,
|
|
|
Year Ended December 31,
|
|
|
|
|
|
2014
|
|
2013
|
|
|
2014
|
|
2013
|
|
|
|
|
|
(in thousands, except share and per share data)
|
|
|
|
|
|
Non GAAP (1)
|
|
|
|
|
Non GAAP (1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss attributable to common stockholders
|
|
|
$
|
(58,122
|
)
|
|
$
|
(8,924
|
)
|
|
|
$
|
(150,169
|
)
|
|
$
|
(40,914
|
)
|
Add: Accretion of convertible redeemable preferred units
|
|
|
|
(14,432
|
)
|
|
|
4,767
|
|
|
|
|
2,071
|
|
|
|
25,388
|
|
Add: Equity based compensation and related taxes
|
|
|
|
57,716
|
|
|
|
-
|
|
|
|
|
63,244
|
|
|
|
-
|
|
Add: Taxes
|
|
|
|
99
|
|
|
|
50
|
|
|
|
|
175
|
|
|
|
46
|
|
Non GAAP net loss attributable to common stockholders
|
|
|
$
|
(14,739
|
)
|
|
$
|
(4,107
|
)
|
|
|
$
|
(84,679
|
)
|
|
$
|
(15,480
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of common units outstanding used in
|
|
|
|
|
|
|
|
|
|
|
|
computing per share amounts - basic and diluted
|
|
|
|
80,078,304
|
|
|
|
41,413,142
|
|
|
|
|
50,641,601
|
|
|
|
41,331,546
|
|
|
|
Adjustment to reflect the issuance of shares in connection with the
IPO, conversion of preferred stock and vesting of equity compensation
|
|
|
|
2,942,287
|
|
|
|
|
|
|
32,378,990
|
|
|
|
Non-GAAP Weighted average shares used to compute diluted net loss
per share
|
|
|
|
83,020,591
|
|
|
|
41,413,142
|
|
|
|
|
83,020,591
|
|
|
|
41,331,546
|
|
Non GAAP diluted net loss per share
|
|
|
$
|
(0.18
|
)
|
|
$
|
(0.10
|
)
|
|
|
$
|
(1.02
|
)
|
|
$
|
(0.37
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Weighted average shares used to compute non-GAAP diluted net
loss per share for the three and twelve months ended December 31,
2014 includes the impact of share issuances and share converstions
at its IPO and through December 31, 2014 as if they ocurred at the
beginning of the 2014 periods presented.
|
|
The following table presents a reconciliation of free cash flow to net
cash provided by operating activities for each of the periods indicated:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended December 31,
|
|
|
Year Ended December 31,
|
|
|
|
|
2014
|
|
2013
|
|
|
2014
|
|
2013
|
|
|
|
|
(in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by operating activities, net of acquisition
|
|
|
$
|
62,529
|
|
|
$
|
40,838
|
|
|
|
$
|
11,692
|
|
|
$
|
34,413
|
|
Purchase of property, equipment, and leasehold improvements
|
|
|
|
(8,254
|
)
|
|
|
(2,318
|
)
|
|
|
|
(39,422
|
)
|
|
|
(6,739
|
)
|
Site and software development costs
|
|
|
|
(3,487
|
)
|
|
|
(2,628
|
)
|
|
|
|
(14,130
|
)
|
|
|
(9,040
|
)
|
Free cash flow
|
|
|
$
|
50,788
|
|
|
$
|
35,892
|
|
|
|
$
|
(41,860
|
)
|
|
$
|
18,634
|
|
|
Key Financial and Operating Metrics
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended December 31,
|
|
|
Year Ended December 31,
|
|
|
|
|
|
|
|
|
2014
|
|
2013
|
|
|
2014
|
|
2013
|
|
|
|
|
|
|
|
|
(in thousands, except Average Order Value and LTM Net Revenue Per
Active Customer)
|
Consolidated Financial Metrics
|
|
|
|
|
|
|
|
|
|
|
|
Net Revenue
|
|
|
$
|
408,619
|
|
|
$
|
295,333
|
|
|
|
$
|
1,318,951
|
|
|
$
|
915,843
|
|
|
Adjusted EBITDA
|
|
|
$
|
(7,218
|
)
|
|
$
|
(647
|
)
|
|
|
$
|
(62,537
|
)
|
|
$
|
(2,928
|
)
|
|
Free Cash Flow
|
|
|
$
|
50,788
|
|
|
$
|
35,892
|
|
|
|
$
|
(41,860
|
)
|
|
$
|
18,634
|
|
Direct Retail Financial and Operating Metrics
|
|
|
|
|
|
|
|
|
|
|
|
Direct Retail Net Revenue
|
|
|
$
|
346,650
|
|
|
$
|
223,388
|
|
|
|
$
|
1,101,686
|
|
|
$
|
673,446
|
|
|
Active Customers
|
|
|
|
3,217
|
|
|
|
2,092
|
|
|
|
|
3,217
|
|
|
|
2,092
|
|
|
LTM Net Revenue Per Active Customer
|
|
|
$
|
342
|
|
|
$
|
322
|
|
|
|
$
|
342
|
|
|
$
|
322
|
|
|
Orders Delivered
|
|
|
|
1,701
|
|
|
|
1,173
|
|
|
|
|
5,237
|
|
|
|
3,314
|
|
|
Average Order Value
|
|
|
$
|
204
|
|
|
$
|
191
|
|
|
|
$
|
210
|
|
|
$
|
204
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wayfair Inc. Condensed Consolidated Balance Sheets (unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31,
|
|
|
|
|
|
|
|
|
|
2014
|
|
2013
|
|
|
|
|
|
|
|
|
|
(in thousands, except share and per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets
|
|
|
|
|
|
|
|
|
Current assets
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
$
|
355,859
|
|
|
$
|
65,289
|
|
|
Short-term investments
|
|
|
|
60,000
|
|
|
|
50,019
|
|
|
Accounts receivable, net of allowance
|
|
|
|
5,949
|
|
|
|
7,689
|
|
|
Inventories
|
|
|
|
19,798
|
|
|
|
14,963
|
|
|
Prepaid expenses and other current assets
|
|
|
|
45,262
|
|
|
|
25,172
|
|
|
|
|
|
|
Total current assets
|
|
|
|
486,868
|
|
|
|
163,132
|
|
Property and equipment, net
|
|
|
|
60,639
|
|
|
|
22,088
|
|
Goodwill and intangible assets, net
|
|
|
|
6,478
|
|
|
|
9,084
|
|
Other noncurrent assets
|
|
|
|
1,538
|
|
|
|
2,001
|
|
|
|
Total assets
|
|
|
$
|
555,523
|
|
|
$
|
196,305
|
|
Liabilities and Stockholders' Equity
|
|
|
|
|
|
Current liabilities
|
|
|
|
|
|
|
Accounts payable
|
|
|
$
|
147,873
|
|
|
$
|
102,153
|
|
|
Accrued expenses
|
|
|
|
42,335
|
|
|
|
21,375
|
|
|
Deferred revenue
|
|
|
|
26,784
|
|
|
|
13,397
|
|
|
Other current liabilities
|
|
|
|
15,600
|
|
|
|
8,342
|
|
|
|
|
Total current liabilities
|
|
|
|
232,592
|
|
|
|
145,267
|
|
Other liabilities
|
|
|
|
17,392
|
|
|
|
1,030
|
|
|
|
Total liabilities
|
|
|
|
249,984
|
|
|
|
146,297
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Series A convertible redeemable preferred units
|
|
|
|
|
|
241,186
|
|
|
Class A common stock; 37,002,874 and no shares issued and
outstandinging at
|
|
|
|
-
|
|
|
|
|
|
December 31, 2014 and 2013, respectively
|
|
|
|
37
|
|
|
|
-
|
|
|
Class B common stock, 46,179,192 and no shares issued and
outstanding at
|
|
|
|
|
|
|
|
December 31, 2014 and 2013, respectively
|
|
|
|
46
|
|
|
|
-
|
|
|
Additional paid-in capital
|
|
|
|
363,944
|
|
|
|
-
|
|
|
Accumulated deficit
|
|
|
|
(58,122
|
)
|
|
|
(190,850
|
)
|
|
Accumulated other comprehensive loss
|
|
|
|
(366
|
)
|
|
|
(328
|
)
|
|
|
|
Total stockholders' equity
|
|
|
|
305,539
|
|
|
|
(191,178
|
)
|
|
|
Total liabilities and stockholders' equity
|
|
|
$
|
555,523
|
|
|
$
|
196,305
|
|
|
Wayfair Inc. Condensed Consolidated Statements of
Operations (unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non GAAP Income Statement
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Excludes equity based compensation and related taxes)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
|
|
Year Ended
|
|
|
|
|
|
|
|
|
|
Three months ended December 31,
|
|
|
Year Ended December 31,
|
|
|
December 31,
|
|
December 31,
|
|
|
|
|
|
|
|
|
|
2014
|
|
2013
|
|
|
2014
|
|
2013
|
|
|
2014
|
|
2014
|
|
|
|
|
|
|
|
|
|
(in thousands, except share and per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated Statements of Operations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net revenue
|
|
|
|
$
|
408,619
|
|
|
$
|
295,333
|
|
|
|
$
|
1,318,951
|
|
|
$
|
915,843
|
|
|
|
$
|
408,619
|
|
|
$
|
1,318,951
|
|
Cost of goods sold
|
|
|
|
310,209
|
|
|
|
224,609
|
|
|
|
|
1,007,853
|
|
|
|
691,602
|
|
|
|
$
|
309,840
|
|
|
$
|
1,007,484
|
|
Gross profit
|
|
|
|
|
|
98,410
|
|
|
|
70,724
|
|
|
|
|
311,098
|
|
|
|
224,241
|
|
|
|
|
98,779
|
|
|
|
311,467
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Customer service and merchant fees
|
|
|
|
18,483
|
|
|
|
10,823
|
|
|
|
|
55,804
|
|
|
|
35,500
|
|
|
|
|
16,471
|
|
|
|
53,539
|
|
|
Advertising
|
|
|
|
|
54,806
|
|
|
|
36,908
|
|
|
|
|
191,284
|
|
|
|
108,469
|
|
|
|
|
54,806
|
|
|
|
191,284
|
|
|
Merchandising, marketing and sales
|
|
|
|
38,245
|
|
|
|
10,428
|
|
|
|
|
80,113
|
|
|
|
33,506
|
|
|
|
|
13,785
|
|
|
|
51,599
|
|
|
Operations, technology, general and administrative
|
|
|
|
59,143
|
|
|
|
16,702
|
|
|
|
|
130,701
|
|
|
|
62,246
|
|
|
|
|
28,268
|
|
|
|
98,605
|
|
|
Amortization of acquired intangible assets
|
|
|
|
232
|
|
|
|
249
|
|
|
|
|
980
|
|
|
|
539
|
|
|
|
|
232
|
|
|
|
980
|
|
|
|
|
|
|
Total operating expenses
|
|
|
|
170,909
|
|
|
|
75,110
|
|
|
|
|
458,882
|
|
|
|
240,260
|
|
|
|
|
113,562
|
|
|
|
396,007
|
|
|
|
|
|
|
Loss from operations
|
|
|
|
(72,499
|
)
|
|
|
(4,386
|
)
|
|
|
|
(147,784
|
)
|
|
|
(16,019
|
)
|
|
|
|
(14,783
|
)
|
|
|
(84,540
|
)
|
|
Interest income, net
|
|
|
|
128
|
|
|
|
60
|
|
|
|
|
350
|
|
|
|
245
|
|
|
|
|
128
|
|
|
|
350
|
|
|
Other (expense) income, net
|
|
|
|
(84
|
)
|
|
|
219
|
|
|
|
|
(489
|
)
|
|
|
294
|
|
|
|
|
(84
|
)
|
|
|
(489
|
)
|
Loss before income taxes
|
|
|
|
(72,455
|
)
|
|
|
(4,107
|
)
|
|
|
|
(147,923
|
)
|
|
|
(15,480
|
)
|
|
|
|
(14,739
|
)
|
|
|
(84,679
|
)
|
Provision for income taxes
|
|
|
|
(99
|
)
|
|
|
(50
|
)
|
|
|
|
(175
|
)
|
|
|
(46
|
)
|
|
|
|
(99
|
)
|
|
|
(175
|
)
|
Net loss
|
|
|
|
|
|
$
|
(72,554
|
)
|
|
$
|
(4,157
|
)
|
|
|
$
|
(148,098
|
)
|
|
$
|
(15,526
|
)
|
|
|
$
|
(14,838
|
)
|
|
$
|
(84,854
|
)
|
Accretion of convertible redeemable preferred units
|
|
|
|
14,432
|
|
|
|
(4,767
|
)
|
|
|
|
(2,071
|
)
|
|
|
(25,388
|
)
|
|
|
|
14,432
|
|
|
|
(2,071
|
)
|
Net loss attributable to common stockholders
|
|
|
|
(58,122
|
)
|
|
|
(8,924
|
)
|
|
|
|
(150,169
|
)
|
|
|
(40,914
|
)
|
|
|
|
(406
|
)
|
|
|
(86,925
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss attributable to common stockholders per share - basic and
diluted
|
$
|
(0.73
|
)
|
|
$
|
(0.22
|
)
|
|
|
$
|
(2.97
|
)
|
|
$
|
(0.99
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of common stock outstanding used in
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
computing per share amounts - basic and diluted
|
|
|
|
80,078,304
|
|
|
|
41,413,142
|
|
|
|
|
50,641,601
|
|
|
|
41,331,546
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
|
|
Twelve months ended
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2014
|
|
December 31, 2014
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Non GAAP Income Statement:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss attributable to common stockholders
|
|
|
$
|
(58,122
|
)
|
|
$
|
(150,169
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
Excludes equity based compensation and related taxes:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of goods sold
|
|
|
|
369
|
|
|
|
369
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Customer service and merchant fees
|
|
|
|
2,012
|
|
|
|
2,265
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Merchandising, marketing and sales
|
|
|
|
24,460
|
|
|
|
28,514
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operations, technology, general and administrative
|
|
|
|
30,875
|
|
|
|
32,096
|
|
|
|
|
|
|
|
|
|
|
|
Non GAAP Net loss attributable to common stockholders
|
|
|
$
|
(406
|
)
|
|
$
|
(86,925
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wayfair Inc. Condensed Consolidated Statements of
Cash Flows (unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31,
|
|
|
|
|
|
|
|
|
|
2014
|
|
2013
|
|
|
|
|
|
|
|
|
|
(in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from operating activities
|
|
|
|
|
|
|
Net loss
|
|
|
|
|
|
$
|
(148,098
|
)
|
|
$
|
(15,526
|
)
|
Adjustments to reconcile net loss to net cash provided by
|
|
|
|
|
|
|
operating activities, net of acquisition:
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
|
|
22,003
|
|
|
|
13,091
|
|
|
|
|
Equity based compensation
|
|
|
|
60,809
|
|
|
|
-
|
|
|
|
|
Other non-cash adjustments
|
|
|
|
570
|
|
|
|
121
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Changes in operating assets and liabilities:
|
|
|
|
|
|
|
Accounts receivable and customer refunds payable
|
|
|
|
1,741
|
|
|
|
8,112
|
|
Inventories
|
|
|
|
|
|
(4,835
|
)
|
|
|
(6,630
|
)
|
Prepaid expenses and other current assets
|
|
|
|
(20,143
|
)
|
|
|
(9,159
|
)
|
Accounts payable and accrued expenses
|
|
|
|
66,673
|
|
|
|
40,853
|
|
Deferred revenue and other liabilities
|
|
|
|
33,031
|
|
|
|
4,195
|
|
Other assets
|
|
|
|
|
|
(59
|
)
|
|
|
(644
|
)
|
Net cash provided by operating activities
|
|
|
|
11,692
|
|
|
|
34,413
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from investing activities
|
|
|
|
|
|
|
Purchase of short-term investments
|
|
|
|
(135,000
|
)
|
|
|
(93,000
|
)
|
Maturities of short-term investments
|
|
|
|
125,019
|
|
|
|
65,998
|
|
Purchase of property and equipment
|
|
|
|
(39,422
|
)
|
|
|
(6,739
|
)
|
Site and software development costs
|
|
|
|
(14,130
|
)
|
|
|
(9,040
|
)
|
Cash paid for acquisition
|
|
|
|
-
|
|
|
|
(3,741
|
)
|
Other investing activities, net
|
|
|
|
531
|
|
|
|
(469
|
)
|
Net cash used in investing activities
|
|
|
|
(63,002
|
)
|
|
|
(46,991
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from financing activities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net proceeds from issuance of Series B convertible redeemable
preferred units
|
|
|
|
154,774
|
|
|
-
|
|
Proceeds from initial public offering, net of underwriter fees
|
|
|
|
282,893
|
|
|
-
|
|
Proceeds from exercise of stock options
|
|
|
|
12
|
|
|
-
|
|
Taxes paid related to net share settlement of equity awards
|
|
|
|
(27,985
|
)
|
|
-
|
|
Repurchase of common units
|
|
|
|
(23,500
|
)
|
|
|
-
|
|
Dividends paid to Series A convertible redeemable preferred
|
|
|
|
(39,516
|
)
|
|
|
-
|
|
Repurchase of employee equity
|
|
|
|
(5,528
|
)
|
|
|
-
|
|
|
|
|
|
|
Net cash provided by financing activities
|
|
|
|
341,150
|
|
|
|
-
|
|
Effect of exchange rate changes on cash and cash equivalents
|
|
|
|
730
|
|
|
|
6
|
|
|
|
|
|
|
Net decrease in cash and cash equivalents
|
|
|
|
290,570
|
|
|
|
(12,572
|
)
|
Cash and cash equivalents
|
|
|
|
|
|
|
Beginning of period
|
|
|
|
65,289
|
|
|
|
77,861
|
|
End of period
|
|
|
|
$
|
355,859
|
|
|
$
|
65,289
|
|
Source: Wayfair Inc.