Q4 Direct Retail Revenue Growth of 97.8% Year over Year to $685.6
million
Q4 Total Net Revenue Growth of 81.0% Year over Year to $739.8 million
Full Year 2015 Total Net Revenue Growth of 70.6% to $2.25 billion
5.4 million Active Customers, up 66.6% 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 year ended December 31, 2015.
Fourth Quarter 2015 Financial Highlights
-
Direct Retail revenue, consisting of sales generated primarily through
the sites of Wayfair’s five brands, increased $338.9 million to $685.6
million, up 97.8% year over year
-
Total net revenue increased $331.2 million to $739.8 million, up 81.0%
year over year
-
Gross profit was $175.7 million or 23.8% of total net revenue,
compared to 24.1% of total net revenue in the same quarter last year
-
Adjusted EBITDA was $2.8 million or 0.4% of total net revenue
-
GAAP net loss was $15.5 million
-
GAAP basic and diluted net loss per share was $0.18
-
Non-GAAP diluted net loss per share was $0.07
-
Non-GAAP free cash flow was $78.0 million
-
At the end of the fourth quarter, cash, cash equivalents, and
short-term and long-term investments totaled $466.0 million
Full Year 2015 Financial Highlights
-
Direct Retail revenue increased $938.6 million to $2.0 billion, up
85.2% year over year
-
Total net revenue increased $930.9 million to $2.25 billion, up 70.6%
year over year
-
Adjusted EBITDA was negative $15.9 million or negative 0.7% of total
net revenue
-
GAAP net loss was $77.4 million
-
Non-GAAP free cash flow was $72.9 million
“We are excited to report an incredibly strong fourth quarter and
tremendous overall growth for Wayfair in 2015 with the business reaching
$2.25 billion in full year net revenues,” said Niraj Shah, CEO,
co-founder and co-chairman, Wayfair. “We continue to grow both our new
customer base and our repeat business with an exceptional shopping
experience that redefines what is possible in home retail. We remain
firmly focused on delighting our customers as we continue to innovate
and raise the bar in terms of selection, service and design inspiration.
We look forward to making great strides in 2016 as we continue to build
the Wayfair brand in the United States and ramp up our investment in
Europe and Canada.”
Other Fourth Quarter and Full Year Highlights
-
The number of active customers in our Direct Retail business reached
5.4 million as of December 31, 2015, up 66.6% year over year
-
LTM net revenue per active customer increased to $381, up 11.4% year
over year
-
Orders per customer, measured as LTM orders divided by active
customers, increased to 1.71 for the fourth quarter, up from 1.63 year
over year
-
Repeat customers placed 54.3% of total orders in the fourth quarter of
2015, compared to 50.3% in the fourth quarter of 2014
-
Repeat customers placed 1.7 million orders in the fourth quarter of
2015, an increase of 96.1% year over year
-
For the full year 2015, repeat customers placed 5.0 million orders, an
increase of 92.3% year over year
-
Orders delivered in the fourth quarter of 2015 were 3.1 million, an
increase of 81.7% year over year
-
For the Full Year 2015, orders delivered were 9.2 million, an increase
of 75.1% year over year
-
Average order value was $222 for the fourth quarter of 2015, an
increase of 8.8% year over year
-
In the fourth quarter of 2015, 36.4% of total orders delivered for our
Direct Retail business were placed via a mobile device, up from 29.7%
in the fourth quarter of 2014
Conference Call
Wayfair will host a conference call and webcast to discuss its fourth
quarter and full year 2015 financial results today at 8:00 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 37085597. The call will also be available via live
webcast at investor.wayfair.com along with supporting slides. 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, where beautiful furniture and finds meet irresistible
savings
-
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 generated $2.25 billion in net revenues for full year 2015. The
company employed 3,809 people as of December 31, 2015 and is
headquartered in Boston, Massachusetts with operations throughout North
America and Europe.
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, statement
regarding the size and expected growth of the brand in 2016. 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 total 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.
Non-GAAP Financial Measures
To supplement Wayfair’s unaudited consolidated and condensed 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, Adjusted EBITDA as a
percentage of total net revenue (“Adjusted EBITDA Margin”), free cash
flow and non-GAAP net loss and diluted net loss per share. 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 and Adjusted EBITDA Margin are non-GAAP financial
measures that are calculated as loss before depreciation and
amortization, equity-based compensation and related taxes, interest and
other income and expense and provision for income taxes. Wayfair has
included Adjusted EBITDA and Adjusted EBITDA Margin in this earnings
release because they are key measures 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 and Adjusted EBITDA Margin facilitate 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 and
Adjusted EBITDA Margin provide 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 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, (benefit from) provision for income
taxes, and non-recurring items divided by weighted average shares.
Wayfair believes that adding back accretion of convertible redeemable
preferred units, equity-based compensation expense and related tax and
(benefit from) provision for income taxes, and non-recurring items as
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.
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 and Adjusted EBITDA Margin for each of the periods indicated (in
thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended December 31,
|
|
|
Year Ended December 31,
|
|
|
|
|
|
2015
|
|
2014
|
|
|
2015
|
|
2014
|
Reconciliation of Adjusted EBITDA
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss
|
|
|
|
|
$
|
(15,495
|
)
|
|
$
|
(72,554
|
)
|
|
|
$
|
(77,443
|
)
|
|
$
|
(148,098
|
)
|
Depreciation and amortization
|
|
|
|
|
9,095
|
|
|
7,565
|
|
|
|
32,446
|
|
|
22,003
|
|
Equity based compensation and related taxes
|
|
|
|
|
9,727
|
|
|
57,716
|
|
|
|
32,975
|
|
|
63,244
|
|
Interest (income), net
|
|
|
|
|
(387
|
)
|
|
(128
|
)
|
|
|
(1,284
|
)
|
|
(350
|
)
|
Other (income) expense, net
|
|
|
|
|
(176
|
)
|
|
84
|
|
|
|
(2,718
|
)
|
|
489
|
|
Provision for income taxes
|
|
|
|
|
64
|
|
|
99
|
|
|
|
95
|
|
|
175
|
|
Adjusted EBITDA
|
|
|
|
|
$
|
2,828
|
|
|
$
|
(7,218
|
)
|
|
|
$
|
(15,929
|
)
|
|
$
|
(62,537
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net revenue
|
|
|
|
|
$
|
739,790
|
|
|
$
|
408,619
|
|
|
|
$
|
2,249,885
|
|
|
$
|
1,318,951
|
|
Adjusted EBITDA Margin
|
|
|
|
|
0.4
|
%
|
|
(1.8
|
)%
|
|
|
(0.7
|
)%
|
|
(4.7
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
A reconciliation of GAAP net loss attributable to common stockholders to
non-GAAP diluted net loss, the most directly comparable GAAP financial
measure, in order to calculate non-GAAP diluted net loss per share, is
as follows (in thousands, except per share data):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended December 31,
|
|
|
Year Ended December 31,
|
|
|
|
|
|
2015
|
|
2014
|
|
|
2015
|
|
2014
|
Net loss attributable to common stockholders
|
|
|
|
|
$
|
(15,495
|
)
|
|
$
|
(58,122
|
)
|
|
|
$
|
(77,443
|
)
|
|
$
|
(150,169
|
)
|
Accretion of convertible redeemable preferred units
|
|
|
|
|
—
|
|
|
(14,432
|
)
|
|
|
—
|
|
|
2,071
|
|
Equity based compensation and related taxes
|
|
|
|
|
9,727
|
|
|
57,716
|
|
|
|
32,975
|
|
|
63,244
|
|
Provision for income taxes
|
|
|
|
|
64
|
|
|
99
|
|
|
|
95
|
|
|
175
|
|
Other (1)
|
|
|
|
|
—
|
|
|
—
|
|
|
|
(2,997
|
)
|
|
—
|
|
Non-GAAP net loss
|
|
|
|
|
$
|
(5,704
|
)
|
|
$
|
(14,739
|
)
|
|
|
$
|
(47,370
|
)
|
|
$
|
(84,679
|
)
|
Non-GAAP net loss per share, basic and diluted
|
|
|
|
|
$
|
(0.07
|
)
|
|
$
|
(0.18
|
)
|
|
|
$
|
(0.57
|
)
|
|
$
|
(1.02
|
)
|
Weighted average common shares outstanding, basic and diluted
|
|
|
|
|
84,191
|
|
|
80,078
|
|
|
|
83,726
|
|
|
50,642
|
|
Adjustment to reflect the issuance of shares in connection
with the IPO, conversion of preferred stock and vesting of
equity compensation (2)
|
|
|
|
|
—
|
|
|
2,943
|
|
|
|
—
|
|
|
32,379
|
|
Non-GAAP Weighted average shares used to compute diluted net
loss per share
|
|
|
|
|
84,191
|
|
|
83,021
|
|
|
|
83,726
|
|
|
83,021
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) In the three months and year ended December 31, 2015, we recorded
zero and $3.0 million gain, respectively, from the sale of our
Australian business. Because the sale was unrelated to current
operations, non-recurring, and neither comparable to prior periods or
predictive of future results, we have chosen to exclude it from the
non-GAAP net loss in evaluating management performance. We recorded this
expense in "Other income (expense), net” in the unaudited consolidated
and condensed statements of operations.
(2) 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 conversions at our
initial public offering and through December 31, 2014 as if they
occurred at the beginning of the 2014 periods presented.
The following table presents a reconciliation of free cash flow to net
cash provided by (used in) operating activities for each of the periods
indicated (in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended December 31,
|
|
|
Year Ended December 31,
|
|
|
|
|
|
2015
|
|
2014
|
|
|
2015
|
|
2014
|
Net cash provided by operating activities
|
|
|
|
|
$
|
90,366
|
|
|
$
|
54,962
|
|
|
|
$
|
135,121
|
|
|
$
|
4,125
|
|
Purchase of property, equipment, and leasehold improvements
|
|
|
|
|
(7,953
|
)
|
|
(687
|
)
|
|
|
(44,648
|
)
|
|
(31,855
|
)
|
Site and software development costs
|
|
|
|
|
(4,429
|
)
|
|
(3,487
|
)
|
|
|
(17,536
|
)
|
|
(14,130
|
)
|
Free cash flow
|
|
|
|
|
$
|
77,984
|
|
|
$
|
50,788
|
|
|
|
$
|
72,937
|
|
|
$
|
(41,860
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Key Financial and Operating Metrics (in thousands, except LTM Net
Revenue per Active Customer and Average Order Value)
|
|
|
|
|
|
|
Three months ended December 31,
|
|
Year Ended December 31,
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
Consolidated Financial Metrics
|
|
|
|
|
|
|
|
|
Net Revenue
|
|
$
|
739,790
|
|
|
$
|
408,619
|
|
|
$
|
2,249,885
|
|
|
$
|
1,318,951
|
|
Adjusted EBITDA
|
|
$
|
2,828
|
|
|
$
|
(7,218
|
)
|
|
$
|
(15,929
|
)
|
|
$
|
(62,537
|
)
|
Free cash flow
|
|
$
|
77,984
|
|
|
$
|
50,788
|
|
|
$
|
72,937
|
|
|
$
|
(41,860
|
)
|
Direct Retail Financial and Operating Metrics
|
|
|
|
|
|
|
|
|
Direct Retail Net Revenue
|
|
$
|
685,573
|
|
|
$
|
346,650
|
|
|
$
|
2,040,238
|
|
|
$
|
1,101,686
|
|
Active Customers
|
|
5,360
|
|
|
3,217
|
|
|
5,360
|
|
|
3,217
|
|
LTM Net Revenue per Active Customer
|
|
$
|
381
|
|
|
$
|
342
|
|
|
$
|
381
|
|
|
$
|
342
|
|
Orders Delivered
|
|
3,091
|
|
|
1,701
|
|
|
9,170
|
|
|
5,237
|
|
Average Order Value
|
|
$
|
222
|
|
|
$
|
204
|
|
|
$
|
222
|
|
|
$
|
210
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WAYFAIR INC.
CONSOLIDATED AND CONDENSED BALANCE SHEETS
(In thousands, except share and per share data)
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
December 31,
|
|
|
|
|
|
2015
|
|
|
2014
|
Assets
|
|
|
|
|
|
|
|
|
Current assets
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
|
|
$
|
334,176
|
|
|
|
$
|
355,859
|
|
Short-term investments
|
|
|
|
|
51,895
|
|
|
|
60,000
|
|
Accounts receivable, net of allowance of $2,767 and $2,545 at
December 31, 2015 and December 31, 2014, respectively
|
|
|
|
|
9,906
|
|
|
|
5,949
|
|
Inventories
|
|
|
|
|
19,900
|
|
|
|
19,798
|
|
Prepaid expenses and other current assets
|
|
|
|
|
76,446
|
|
|
|
45,262
|
|
Total current assets
|
|
|
|
|
492,323
|
|
|
|
486,868
|
|
Property and equipment, net
|
|
|
|
|
112,325
|
|
|
|
60,639
|
|
Goodwill and intangible assets, net
|
|
|
|
|
3,702
|
|
|
|
6,478
|
|
Long-term investments
|
|
|
|
|
79,883
|
|
|
|
—
|
|
Other noncurrent assets
|
|
|
|
|
6,348
|
|
|
|
1,538
|
|
Total assets
|
|
|
|
|
$
|
694,581
|
|
|
|
$
|
555,523
|
|
Liabilities and Stockholders' Equity
|
|
|
|
|
|
|
|
|
Current liabilities
|
|
|
|
|
|
|
|
|
Accounts payable
|
|
|
|
|
$
|
270,913
|
|
|
|
$
|
147,873
|
|
Accrued expenses
|
|
|
|
|
51,560
|
|
|
|
42,335
|
|
Deferred revenue
|
|
|
|
|
50,884
|
|
|
|
26,784
|
|
Other current liabilities
|
|
|
|
|
23,669
|
|
|
|
15,600
|
|
Total current liabilities
|
|
|
|
|
397,026
|
|
|
|
232,592
|
|
Other liabilities
|
|
|
|
|
55,010
|
|
|
|
17,392
|
|
Total liabilities
|
|
|
|
|
452,036
|
|
|
|
249,984
|
|
|
|
|
|
|
|
|
|
|
Convertible preferred stock, $0.001 par value per share:
10,000,000 shares authorized and none issued at December 31,
2015 and December 31, 2014
|
|
|
|
|
—
|
|
|
|
—
|
|
Stockholders’ equity:
|
|
|
|
|
|
|
|
|
Class A common stock, par value $0.001 per share, 500,000,000
shares authorized, 45,814,237 and 37,002,874 shares issued
and outstanding at December 31, 2015 and December 31, 2014,
respectively
|
|
|
|
|
46
|
|
|
|
37
|
|
Class B common stock, par value $0.001 per share, 164,000,000
shares authorized, 38,496,562 and 46,179,192 shares issued
and outstanding at December 31, 2015 and December 31, 2014,
respectively
|
|
|
|
|
38
|
|
|
|
46
|
|
Additional paid-in capital
|
|
|
|
|
378,162
|
|
|
|
363,944
|
|
Accumulated deficit
|
|
|
|
|
(135,565
|
)
|
|
|
(58,122
|
)
|
Accumulated other comprehensive loss
|
|
|
|
|
(136
|
)
|
|
|
(366
|
)
|
Total stockholders’ equity
|
|
|
|
|
242,545
|
|
|
|
305,539
|
|
Total liabilities and stockholders’ equity
|
|
|
|
|
$
|
694,581
|
|
|
|
$
|
555,523
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WAYFAIR INC.
CONSOLIDATED AND CONDENSED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended December 31,
|
|
|
Year Ended December 31,
|
|
|
|
|
|
2015
|
|
2014
|
|
|
2015
|
|
2014
|
Net revenue
|
|
|
|
|
$
|
739,790
|
|
|
$
|
408,619
|
|
|
|
$
|
2,249,885
|
|
|
$
|
1,318,951
|
|
Cost of goods sold (1)
|
|
|
|
|
564,088
|
|
|
310,209
|
|
|
|
1,709,161
|
|
|
1,007,853
|
|
Gross profit
|
|
|
|
|
175,702
|
|
|
98,410
|
|
|
|
540,724
|
|
|
311,098
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
Customer service and merchant fees (1)
|
|
|
|
|
25,813
|
|
|
18,483
|
|
|
|
81,230
|
|
|
55,804
|
|
Advertising
|
|
|
|
|
87,975
|
|
|
54,806
|
|
|
|
278,224
|
|
|
191,284
|
|
Merchandising, marketing and sales (1)
|
|
|
|
|
32,018
|
|
|
38,245
|
|
|
|
106,149
|
|
|
80,113
|
|
Operations, technology, general and administrative (1)
|
|
|
|
|
45,693
|
|
|
59,143
|
|
|
|
155,580
|
|
|
130,701
|
|
Amortization of acquired intangible assets
|
|
|
|
|
197
|
|
|
232
|
|
|
|
891
|
|
|
980
|
|
Total operating expenses
|
|
|
|
|
191,696
|
|
|
170,909
|
|
|
|
622,074
|
|
|
458,882
|
|
Loss from operations
|
|
|
|
|
(15,994
|
)
|
|
(72,499
|
)
|
|
|
(81,350
|
)
|
|
(147,784
|
)
|
Interest income, net
|
|
|
|
|
387
|
|
|
128
|
|
|
|
1,284
|
|
|
350
|
|
Other income (expense), net
|
|
|
|
|
176
|
|
|
(84
|
)
|
|
|
2,718
|
|
|
(489
|
)
|
Loss before income taxes
|
|
|
|
|
(15,431
|
)
|
|
(72,455
|
)
|
|
|
(77,348
|
)
|
|
(147,923
|
)
|
(Benefit from) provision for income taxes
|
|
|
|
|
64
|
|
|
99
|
|
|
|
95
|
|
|
175
|
|
Net loss
|
|
|
|
|
(15,495
|
)
|
|
(72,554
|
)
|
|
|
(77,443
|
)
|
|
(148,098
|
)
|
Accretion of convertible redeemable preferred units
|
|
|
|
|
—
|
|
|
14,432
|
|
|
|
—
|
|
|
(2,071
|
)
|
Net loss attributable to common stockholders
|
|
|
|
|
$
|
(15,495
|
)
|
|
$
|
(58,122
|
)
|
|
|
$
|
(77,443
|
)
|
|
$
|
(150,169
|
)
|
Net loss attributable to common stockholders per share, basic and
diluted
|
|
|
|
|
$
|
(0.18
|
)
|
|
$
|
(0.73
|
)
|
|
|
$
|
(0.92
|
)
|
|
$
|
(2.97
|
)
|
Weighted average common shares outstanding, basic and diluted
|
|
|
|
|
84,191
|
|
|
80,078
|
|
|
|
83,726
|
|
|
50,642
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Includes equity based compensation and related taxes as follows:
Cost of goods sold
|
|
|
|
|
$
|
34
|
|
|
|
$
|
369
|
|
|
|
$
|
280
|
|
|
|
$
|
369
|
Customer service and merchant fees
|
|
|
|
|
264
|
|
|
|
2,012
|
|
|
|
1,007
|
|
|
|
2,265
|
Merchandising, marketing and sales
|
|
|
|
|
4,952
|
|
|
|
24,460
|
|
|
|
15,436
|
|
|
|
28,514
|
Operations, technology, general and administrative
|
|
|
|
|
4,477
|
|
|
|
30,875
|
|
|
|
16,252
|
|
|
|
32,096
|
|
|
|
|
|
$
|
9,727
|
|
|
|
$
|
57,716
|
|
|
|
$
|
32,975
|
|
|
|
$
|
63,244
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WAYFAIR INC.
CONSOLIDATED AND CONDENSED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31,
|
|
|
|
|
|
2015
|
|
|
2014
|
Cash flows from operating activities
|
|
|
|
|
|
|
|
|
Net loss
|
|
|
|
|
$
|
(77,443
|
)
|
|
|
$
|
(148,098
|
)
|
Adjustments to reconcile net loss to net cash used in operating
activities
|
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
|
|
|
32,446
|
|
|
|
22,003
|
|
Equity based compensation
|
|
|
|
|
31,015
|
|
|
|
60,809
|
|
Gain on sale of a business
|
|
|
|
|
(2,997
|
)
|
|
|
—
|
|
Other non-cash adjustments
|
|
|
|
|
3,027
|
|
|
|
570
|
|
Changes in operating assets and liabilities:
|
|
|
|
|
|
|
|
|
Accounts receivable
|
|
|
|
|
(4,033
|
)
|
|
|
1,741
|
|
Inventories
|
|
|
|
|
(131
|
)
|
|
|
(4,835
|
)
|
Prepaid expenses and other current assets
|
|
|
|
|
(29,513
|
)
|
|
|
(20,143
|
)
|
Accounts payable and accrued expenses
|
|
|
|
|
135,855
|
|
|
|
59,521
|
|
Deferred revenue and other liabilities
|
|
|
|
|
47,031
|
|
|
|
32,616
|
|
Other assets
|
|
|
|
|
(136
|
)
|
|
|
(59
|
)
|
Net cash provided by operating activities
|
|
|
|
|
135,121
|
|
|
|
4,125
|
|
|
|
|
|
|
|
|
|
|
Cash flows from investing activities
|
|
|
|
|
|
|
|
|
Purchase of short-term and long-term investments
|
|
|
|
|
(207,303
|
)
|
|
|
(135,000
|
)
|
Sale and maturities of short-term investments
|
|
|
|
|
133,596
|
|
|
|
125,019
|
|
Purchase of property and equipment
|
|
|
|
|
(44,648
|
)
|
|
|
(31,855
|
)
|
Site and software development costs
|
|
|
|
|
(17,536
|
)
|
|
|
(14,130
|
)
|
Cash received from the sale of a business (net of cash sold)
|
|
|
|
|
2,860
|
|
|
|
—
|
|
Other investing activities, net
|
|
|
|
|
(4,697
|
)
|
|
|
531
|
|
Net cash used in investing activities
|
|
|
|
|
(137,728
|
)
|
|
|
(55,435
|
)
|
|
|
|
|
|
|
|
|
|
Cash flows from financing activities
|
|
|
|
|
|
|
|
|
Taxes paid related to net share settlement of equity awards
|
|
|
|
|
(19,111
|
)
|
|
|
(27,985
|
)
|
Net proceeds from exercise of stock options
|
|
|
|
|
495
|
|
|
|
12
|
|
Net proceeds from issuance of Series B convertible redeemable
preferred units
|
|
|
|
|
—
|
|
|
|
154,774
|
|
Repurchase of common units
|
|
|
|
|
—
|
|
|
|
(23,500
|
)
|
Dividends paid to Series A convertible redeemable preferred holders
|
|
|
|
|
—
|
|
|
|
(39,516
|
)
|
Repurchase of employee equity
|
|
|
|
|
—
|
|
|
|
(5,528
|
)
|
Proceeds from initial public offering, net of fees
|
|
|
|
|
—
|
|
|
|
282,893
|
|
Net cash (used in) provided by financing activities
|
|
|
|
|
(18,616
|
)
|
|
|
341,150
|
|
Effect of exchange rate changes on cash and cash equivalents
|
|
|
|
|
(460
|
)
|
|
|
730
|
|
Net (decrease) increase in cash and cash equivalents
|
|
|
|
|
(21,683
|
)
|
|
|
290,570
|
|
Cash and cash equivalents
|
|
|
|
|
|
|
|
|
Beginning of year
|
|
|
|
|
355,859
|
|
|
|
65,289
|
|
End of year
|
|
|
|
|
$
|
334,176
|
|
|
|
$
|
355,859
|
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20160225005397/en/
Source: Wayfair Inc.