Q4 Direct Retail Net Revenue Growth of 48% Year over Year to $1,419
million
Q4 Total Net Revenue Growth of 46% Year over Year to $1,439 million
Full Year 2017 Total Net Revenue Growth of 40% to $4.7 billion
11.0 million Active Customers, up 33% Year over Year
BOSTON--(BUSINESS WIRE)--
Wayfair Inc. (NYSE: W), one of the world’s largest online destinations
for the home, today reported financial results for its fourth quarter
and full year ended December 31, 2017.
Fourth Quarter 2017 Financial Highlights
-
Direct Retail net revenue, consisting of sales generated primarily
through Wayfair's five distinct sites, increased $460.2 million to
$1,419.2 million, up 48.0% year over year
-
Total net revenue increased $454.5 million to $1,439.0 million, up
46.2% year over year
-
Gross profit was $332.2 million or 23.1% of total net revenue
-
GAAP net loss was $72.8 million
-
Adjusted EBITDA was $(21.2) million or (1.5)% of total net revenue
-
GAAP basic and diluted net loss per share was $0.83
-
Non-GAAP diluted net loss per share was $0.58
-
Non-GAAP free cash flow was $1.4 million
-
At the end of the fourth quarter, cash, cash equivalents, and
short-term and long-term investments totaled $641.6 million
Full Year 2017 Financial Highlights
-
Direct Retail net revenue increased $1.4 billion to $4.6 billion, up
42.5% year over year
-
Total net revenue increased $1.3 billion to $4.7 billion, up 39.7%
year over year
-
GAAP net loss was $244.6 million
-
Adjusted EBITDA was $(67.0) million or (1.4)% of total net revenue
-
Non-GAAP free cash flow was $(113.2) million
"We are pleased to report another year of incredible growth with total
net revenue up $1.3 billion to $4.7 billion in 2017, as well as a record
fourth quarter with the largest year-over-year increase in Direct Retail
dollars in company history," said Niraj Shah, CEO, co-founder and
co-chairman, Wayfair. "Our long-term investing approach and
customer-centric mentality continue to pay off as we outpace the shift
to online spending in our category and gain significant market share.
Technology, combined with continuous testing and innovation, allows us
to constantly enhance the shopping experience while quickly scaling our
operations. From developing tools and features that help shoppers find
just the right item among millions of options to providing design
inspiration, product visualization and delivery tracking - we are
redefining what is possible in the home category. This experience is
resonating with our customers across the U.S. and in Canada, the United
Kingdom and Germany with our international business completing a
particularly strong year. Across North America and Europe, we continue
to expand the footprint of our Wayfair Delivery Network and CastleGate,
offering faster and more seamless delivery across more products and
regions than ever before. As we enter 2018 with tremendous strength, we
look forward to building upon this momentum as we lead the way in
creating the best possible shopping experience for home."
Other Fourth Quarter Highlights
-
The number of active customers in our Direct Retail business reached
11.0 million as of December 31, 2017, an increase of 33.2% year over
year
-
LTM net revenue per active customer was $422 as of December 31, 2017,
an increase of 6.8% year over year
-
Orders per customer, measured as LTM orders divided by active
customers, was 1.77 for the fourth quarter of 2017, compared to 1.71
for the fourth quarter of 2016
-
Repeat customers placed 62.4% of total orders in the fourth quarter of
2017, compared to 58.0% in the fourth quarter of 2016
-
Repeat customers placed 3.9 million orders in the fourth quarter of
2017, an increase of 41.3% year over year
-
Orders delivered in the fourth quarter of 2017 were 6.2 million, an
increase of 31.3% year over year
-
Average order value was $229 for the fourth quarter of 2017, compared
to $203 in the fourth quarter of 2016
-
In the fourth quarter of 2017, 47.3% of total orders delivered for our
Direct Retail business were placed via a mobile device, compared to
43.3% in the fourth quarter of 2016
Webcast and Conference Call
Wayfair will host a conference call and webcast to discuss its fourth
quarter and full year 2017 financial results today at 8 a.m. (ET).
Investors and participants can access the call by dialing (833) 286-5803
in the U.S. and (647) 689-4448 internationally. The passcode for the
conference line is 9874508. 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 believes everyone should live in a home they love. Through
technology and innovation, Wayfair makes it possible for shoppers to
quickly and easily find exactly what they want from a selection of more
than 10 million items across home furnishings, décor, home improvement,
housewares and more. Committed to delighting its customers every step of
the way, Wayfair is reinventing the way people shop for their homes –
from product discovery to final delivery.
The Wayfair family of sites includes:
-
Wayfair, an online destination for all things home
-
Joss & Main, where beautiful furniture and finds meet irresistible
savings
-
AllModern, unbelievable prices on everything modern
-
Birch Lane, a collection of classic furnishings and timeless home décor
-
Perigold, unparalleled access to the finest home décor and furnishings
Wayfair generated $4.7 billion in net revenue for full year 2017.
Headquartered in Boston, Massachusetts with operations throughout North
America and Europe, the company employs more than 7,700 people.
Forward-Looking Statements
This press release contains forward-looking statements. All statements
other than statements of historical fact contained in this press
release, including statements regarding our future results of operations
and financial position, business strategy and plans and objectives of
management for future operations, are forward-looking statements. In
some cases, you can identify forward-looking statements by terms such as
"may," "will," "should," "expects," "plans," "anticipates," "could,"
"intends," "target," "projects," "contemplates," "believes,"
"estimates," "predicts," "potential" or "continue" or the negative of
these terms or other similar expressions.
Forward-looking statements are based on current expectations of future
events. We cannot guarantee that any forward-looking statement will be
accurate, although we believe that we have been reasonable in our
expectations and assumptions. Investors should realize that if
underlying assumptions prove inaccurate or that known or unknown risks
or uncertainties materialize, actual results could vary materially from
our expectations and projections. Investors are therefore cautioned not
to place undue reliance on any forward-looking statements. These
forward-looking statements speak only as of the date of this press
release and, except as required by applicable law, we undertake no
obligation to publicly update or revise any forward-looking statements
contained herein, whether as a result of any new information, future
events or otherwise.
Factors that could cause or contribute to differences in our future
results include, but are not limited to: economic factors, such as
interest rates and currency exchange fluctuations; our ability to
acquire new customers; our ability to sustain and/or manage our growth,
including the expansion of our Wayfair Delivery Network; our ability to
increase our net revenue per active customer; and our ability to build
and maintain strong brands. A further list and description of these
risks, uncertainties and other factors can be found under Part I, Item
1A, Risk Factors in our Annual Report on Form 10-K for the fiscal year
ended December 31, 2016 and the Company’s subsequent filings with the
Securities and Exchange Commission. We qualify all of our
forward-looking statements by these cautionary statements.
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, (benefit from) provision for income taxes, and
non-recurring items. 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 directors 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
directors.
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 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 plus 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 equity-based compensation expense and related taxes 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,
|
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
Reconciliation of Adjusted EBITDA
|
|
|
|
|
|
|
|
|
Net loss
|
|
$
|
(72,771
|
)
|
|
$
|
(43,956
|
)
|
|
$
|
(244,614
|
)
|
|
$
|
(194,375
|
)
|
Depreciation and amortization (1)
|
|
24,432
|
|
|
17,044
|
|
|
87,020
|
|
|
55,572
|
|
Equity based compensation and related taxes
|
|
22,087
|
|
|
14,688
|
|
|
72,626
|
|
|
51,953
|
|
Interest expense (income), net
|
|
5,576
|
|
|
97
|
|
|
9,433
|
|
|
(694
|
)
|
Other (income) expense, net
|
|
(358
|
)
|
|
48
|
|
|
(758
|
)
|
|
(1,756
|
)
|
(Benefit from) provision for income taxes
|
|
(185
|
)
|
|
53
|
|
|
486
|
|
|
608
|
|
Other (1)
|
|
—
|
|
|
—
|
|
|
8,774
|
|
|
—
|
|
Adjusted EBITDA
|
|
$
|
(21,219
|
)
|
|
$
|
(12,026
|
)
|
|
$
|
(67,033
|
)
|
|
$
|
(88,692
|
)
|
|
|
|
|
|
|
|
|
|
Net revenue
|
|
$
|
1,439,016
|
|
|
$
|
984,559
|
|
|
$
|
4,720,895
|
|
|
$
|
3,380,360
|
|
Adjusted EBITDA Margin
|
|
(1.5
|
)%
|
|
(1.2
|
)%
|
|
(1.4
|
)%
|
|
(2.6
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) We recorded $9.6 million of one-time charges in the year ended
December 31, 2017 in "Selling, operations, technology, general and
administrative" in the consolidated and condensed statements of
operations related to a warehouse we vacated in July 2017. Of the $9.6
million charges, $8.8 million was included in "Other" and related
primarily to the excess of our estimated future remaining lease
commitments through 2023 over our expected sublease income over the same
period, and $0.8 million was included in "Depreciation and amortization"
related to accelerated depreciation of leasehold improvements in the
warehouse.
The following table presents Adjusted EBITDA attributable to our
segments, and the reconciliation of net loss to consolidated Adjusted
EBITDA is presented in the preceding table (in thousands):
|
|
|
|
|
|
|
Three months ended December 31,
|
|
Year Ended December 31,
|
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
Segment Adjusted EBITDA
|
|
|
|
|
|
|
|
|
U.S.
|
|
$
|
7,204
|
|
|
$
|
11,992
|
|
|
$
|
35,888
|
|
|
$
|
176
|
|
International
|
|
(28,423
|
)
|
|
(24,018
|
)
|
|
(102,921
|
)
|
|
(88,868
|
)
|
Adjusted EBITDA
|
|
$
|
(21,219
|
)
|
|
$
|
(12,026
|
)
|
|
$
|
(67,033
|
)
|
|
$
|
(88,692
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
A reconciliation of GAAP net loss 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,
|
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
Net loss
|
|
$
|
(72,771
|
)
|
|
$
|
(43,956
|
)
|
|
$
|
(244,614
|
)
|
|
$
|
(194,375
|
)
|
Equity based compensation and related taxes
|
|
22,087
|
|
|
14,688
|
|
|
72,626
|
|
|
51,953
|
|
Provision for income taxes
|
|
(185
|
)
|
|
53
|
|
|
486
|
|
|
608
|
|
Non-GAAP net loss
|
|
$
|
(50,869
|
)
|
|
$
|
(29,215
|
)
|
|
$
|
(171,502
|
)
|
|
$
|
(141,814
|
)
|
Non-GAAP net loss per share, basic and diluted
|
|
$
|
(0.58
|
)
|
|
$
|
(0.34
|
)
|
|
$
|
(1.97
|
)
|
|
$
|
(1.67
|
)
|
Weighted average common shares outstanding, basic and diluted
|
|
87,893
|
|
|
85,567
|
|
|
86,983
|
|
|
84,977
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The following table presents a reconciliation of free cash flow to net
cash provided by operating activities for each of the periods indicated
(in thousands):
|
|
|
|
|
|
|
Three months ended December 31,
|
|
Year Ended December 31,
|
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
Net cash provided by operating activities
|
|
$
|
36,879
|
|
|
$
|
73,494
|
|
|
$
|
33,634
|
|
|
$
|
62,814
|
|
Purchase of property, and equipment
|
|
(23,923
|
)
|
|
(14,863
|
)
|
|
(100,451
|
)
|
|
(96,707
|
)
|
Site and software development costs
|
|
(11,543
|
)
|
|
(9,935
|
)
|
|
(46,428
|
)
|
|
(31,379
|
)
|
Free cash flow
|
|
$
|
1,413
|
|
|
$
|
48,696
|
|
|
$
|
(113,245
|
)
|
|
$
|
(65,272
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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,
|
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
Consolidated Financial Metrics
|
|
|
|
|
|
|
|
|
Net Revenue
|
|
$
|
1,439,016
|
|
|
$
|
984,559
|
|
|
$
|
4,720,895
|
|
|
$
|
3,380,360
|
|
Adjusted EBITDA
|
|
$
|
(21,219
|
)
|
|
$
|
(12,026
|
)
|
|
$
|
(67,033
|
)
|
|
$
|
(88,692
|
)
|
Free cash flow
|
|
$
|
1,413
|
|
|
$
|
48,696
|
|
|
$
|
(113,245
|
)
|
|
$
|
(65,272
|
)
|
Direct Retail Financial and Operating Metrics
|
|
|
|
|
|
|
|
|
Direct Retail Net Revenue
|
|
$
|
1,419,207
|
|
|
$
|
959,008
|
|
|
$
|
4,643,243
|
|
|
$
|
3,258,909
|
|
Active Customers
|
|
10,990
|
|
|
8,250
|
|
|
10,990
|
|
|
8,250
|
|
LTM Net Revenue per Active Customer
|
|
$
|
422
|
|
|
$
|
395
|
|
|
$
|
422
|
|
|
$
|
395
|
|
Orders Delivered
|
|
6,202
|
|
|
4,722
|
|
|
19,411
|
|
|
14,064
|
|
Average Order Value
|
|
$
|
229
|
|
|
$
|
203
|
|
|
$
|
239
|
|
|
$
|
232
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarterly Financial Metrics
The following tables set forth selected financial quarterly metrics and
other financial and operations data for the eight quarters ended
December 31, 2017 (in thousands):
|
|
|
|
|
Three months ended
|
|
|
March 31, 2016
|
|
June 30, 2016
|
|
September 30, 2016
|
|
December 31, 2016
|
|
March 31, 2017
|
|
June 30, 2017
|
|
September 30, 2017
|
|
December 31, 2017
|
Segment Financial Metrics
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. Direct Retail Net Revenue
|
|
$
|
672,700
|
|
|
$
|
702,408
|
|
|
$
|
759,674
|
|
|
$
|
858,583
|
|
|
$
|
837,556
|
|
|
$
|
976,673
|
|
|
$
|
1,033,669
|
|
|
$
|
1,227,507
|
|
U.S. Other Net Revenue
|
|
$
|
33,221
|
|
|
$
|
30,265
|
|
|
$
|
28,127
|
|
|
$
|
25,519
|
|
|
$
|
20,473
|
|
|
$
|
20,395
|
|
|
$
|
16,975
|
|
|
$
|
19,809
|
|
U.S. Adjusted EBITDA
|
|
$
|
(1,039
|
)
|
|
$
|
(2,920
|
)
|
|
$
|
(7,857
|
)
|
|
$
|
11,992
|
|
|
$
|
3,728
|
|
|
$
|
20,425
|
|
|
$
|
4,531
|
|
|
$
|
7,204
|
|
International Direct Retail Net Revenue
|
|
$
|
39,146
|
|
|
$
|
53,249
|
|
|
$
|
72,724
|
|
|
$
|
100,425
|
|
|
$
|
102,796
|
|
|
$
|
125,788
|
|
|
$
|
147,554
|
|
|
$
|
191,700
|
|
International Other Net Revenue
|
|
$
|
2,281
|
|
|
$
|
1,006
|
|
|
$
|
1,000
|
|
|
$
|
32
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
International Adjusted EBITDA
|
|
$
|
(19,921
|
)
|
|
$
|
(21,937
|
)
|
|
$
|
(22,992
|
)
|
|
$
|
(24,018
|
)
|
|
$
|
(24,624
|
)
|
|
$
|
(22,671
|
)
|
|
$
|
(27,203
|
)
|
|
$
|
(28,423
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The following table reflects the reconciliation of net loss to Adjusted
EBITDA for each of the periods indicated (in thousands):
|
|
|
|
|
Three months ended
|
|
|
March 31, 2016
|
|
June 30, 2016
|
|
September 30, 2016
|
|
December 31, 2016
|
|
March 31, 2017
|
|
June 30, 2017
|
|
September 30, 2017
|
|
December 31, 2017
|
Net loss
|
|
$
|
(41,205
|
)
|
|
$
|
(48,274
|
)
|
|
$
|
(60,940
|
)
|
|
$
|
(43,956
|
)
|
|
$
|
(56,539
|
)
|
|
$
|
(38,875
|
)
|
|
$
|
(76,429
|
)
|
|
$
|
(72,771
|
)
|
Depreciation and amortization (1)
|
|
10,487
|
|
|
12,578
|
|
|
15,463
|
|
|
17,044
|
|
|
20,352
|
|
|
19,323
|
|
|
22,913
|
|
|
24,432
|
|
Equity based compensation and related taxes
|
|
10,662
|
|
|
11,295
|
|
|
15,308
|
|
|
14,688
|
|
|
14,958
|
|
|
15,983
|
|
|
19,598
|
|
|
22,087
|
|
Interest (income) expense, net
|
|
(552
|
)
|
|
(531
|
)
|
|
292
|
|
|
97
|
|
|
299
|
|
|
1,550
|
|
|
2,008
|
|
|
5,576
|
|
Other (income) expense, net
|
|
(669
|
)
|
|
(246
|
)
|
|
(889
|
)
|
|
48
|
|
|
(176
|
)
|
|
(451
|
)
|
|
227
|
|
|
(358
|
)
|
Provision for (benefit from) income taxes
|
|
317
|
|
|
321
|
|
|
(83
|
)
|
|
53
|
|
|
210
|
|
|
224
|
|
|
237
|
|
|
(185
|
)
|
Other (1)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
8,774
|
|
|
—
|
|
Adjusted EBITDA
|
|
$
|
(20,960
|
)
|
|
$
|
(24,857
|
)
|
|
$
|
(30,849
|
)
|
|
$
|
(12,026
|
)
|
|
$
|
(20,896
|
)
|
|
$
|
(2,246
|
)
|
|
$
|
(22,672
|
)
|
|
$
|
(21,219
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) We recorded $9.6 million of one-time charges in the three months
ended September 30, 2017 in "Selling, operations, technology, general
and administrative" in the consolidated and condensed statements of
operations related to a warehouse we vacated in July 2017. Of the $9.6
million charges, $8.8 million was included in "Other" and related
primarily to the excess of our estimated future remaining lease
commitments through 2023 over our expected sublease income over the same
period, and $0.8 million was included in "Depreciation and amortization"
related to accelerated depreciation of leasehold improvements in the
warehouse.
|
WAYFAIR INC.
|
|
CONSOLIDATED AND CONDENSED BALANCE SHEETS
|
(In thousands, except share and per share data)
|
(Unaudited)
|
|
|
|
December 31,
|
|
|
2017
|
|
2016
|
Assets
|
|
|
|
|
Current assets
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
558,960
|
|
|
$
|
279,840
|
|
Short-term investments
|
|
61,032
|
|
|
68,743
|
|
Accounts receivable, net of allowance of $7,000 and $3,115 at
December 31, 2017 and December 31, 2016, respectively
|
|
37,948
|
|
|
19,113
|
|
Inventories
|
|
28,042
|
|
|
18,550
|
|
Prepaid expenses and other current assets
|
|
130,838
|
|
|
90,845
|
|
Total current assets
|
|
816,820
|
|
|
477,091
|
|
Property and equipment, net
|
|
361,141
|
|
|
239,354
|
|
Goodwill and intangible assets, net
|
|
3,105
|
|
|
4,230
|
|
Long-term investments
|
|
21,561
|
|
|
30,967
|
|
Other noncurrent assets
|
|
10,776
|
|
|
10,041
|
|
Total assets
|
|
$
|
1,213,403
|
|
|
$
|
761,683
|
|
Liabilities and Stockholders' Equity
|
|
|
|
|
Current liabilities
|
|
|
|
|
Accounts payable
|
|
$
|
440,366
|
|
|
$
|
379,493
|
|
Accrued expenses
|
|
120,247
|
|
|
67,807
|
|
Deferred revenue
|
|
94,116
|
|
|
65,892
|
|
Other current liabilities
|
|
85,026
|
|
|
44,028
|
|
Total current liabilities
|
|
739,755
|
|
|
557,220
|
|
Lease financing obligation, net of current portion
|
|
82,580
|
|
|
28,900
|
|
Long-term debt
|
|
332,905
|
|
|
—
|
|
Other liabilities
|
|
106,492
|
|
|
96,179
|
|
Total liabilities
|
|
1,261,732
|
|
|
682,299
|
|
|
|
|
|
|
Convertible preferred stock, $0.001 par value per share: 10,000,000
shares authorized and none issued at December 31, 2017 and December
31, 2016
|
|
—
|
|
|
—
|
|
Stockholders’ equity:
|
|
|
|
|
Class A common stock, par value $0.001 per share, 500,000,000 shares
authorized, 57,398,983 and 49,945,202 shares issued and outstanding
at December 31, 2017 and December 31, 2016, respectively
|
|
57
|
|
|
50
|
|
Class B common stock, par value $0.001 per share, 164,000,000 shares
authorized, 30,809,627 and 35,885,692 shares issued and outstanding
at December 31, 2017 and December 31, 2016, respectively
|
|
31
|
|
|
36
|
|
Additional paid-in capital
|
|
537,212
|
|
|
409,225
|
|
Accumulated deficit
|
|
(583,266
|
)
|
|
(329,940
|
)
|
Accumulated other comprehensive (loss) gain
|
|
(2,363
|
)
|
|
13
|
|
Total stockholders' (deficit) equity
|
|
(48,329
|
)
|
|
79,384
|
|
Total liabilities and stockholders' equity
|
|
$
|
1,213,403
|
|
|
$
|
761,683
|
|
|
|
|
|
|
|
|
|
|
|
WAYFAIR INC.
|
|
CONSOLIDATED AND CONDENSED STATEMENTS OF OPERATIONS
|
(In thousands, except per share data)
|
(Unaudited)
|
|
|
|
Three months ended December 31,
|
|
Year Ended December 31,
|
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
Net revenue
|
|
$
|
1,439,016
|
|
|
$
|
984,559
|
|
|
$
|
4,720,895
|
|
|
$
|
3,380,360
|
|
Cost of goods sold (1)
|
|
|
1,106,851
|
|
|
|
745,979
|
|
|
|
3,602,072
|
|
|
|
2,572,549
|
|
Gross profit
|
|
|
332,165
|
|
|
|
238,580
|
|
|
|
1,118,823
|
|
|
|
807,811
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
Customer service and merchant fees (1)
|
|
|
52,384
|
|
|
|
36,597
|
|
|
|
169,516
|
|
|
|
127,883
|
|
Advertising
|
|
|
165,739
|
|
|
|
115,689
|
|
|
|
549,959
|
|
|
|
409,125
|
|
Selling, operations, technology, general and administrative (1)
|
|
|
181,780
|
|
|
|
130,052
|
|
|
|
634,801
|
|
|
|
467,020
|
|
Total operating expenses
|
|
|
399,903
|
|
|
|
282,338
|
|
|
|
1,354,276
|
|
|
|
1,004,028
|
|
Loss from operations
|
|
|
(67,738
|
)
|
|
|
(43,758
|
)
|
|
|
(235,453
|
)
|
|
|
(196,217
|
)
|
Interest (expense) income, net
|
|
|
(5,576
|
)
|
|
|
(97
|
)
|
|
|
(9,433
|
)
|
|
|
694
|
|
Other income (expense), net
|
|
|
358
|
|
|
|
(48
|
)
|
|
|
758
|
|
|
|
1,756
|
|
Loss before income taxes
|
|
|
(72,956
|
)
|
|
|
(43,903
|
)
|
|
|
(244,128
|
)
|
|
|
(193,767
|
)
|
(Benefit from) provision for income taxes
|
|
|
(185
|
)
|
|
|
53
|
|
|
|
486
|
|
|
|
608
|
|
Net loss
|
|
$
|
(72,771
|
)
|
|
$
|
(43,956
|
)
|
|
$
|
(244,614
|
)
|
|
$
|
(194,375
|
)
|
Net loss per share, basic and diluted
|
|
$
|
(0.83
|
)
|
|
$
|
(0.51
|
)
|
|
$
|
(2.81
|
)
|
|
$
|
(2.29
|
)
|
Weighted average number of common stock outstanding used in computer
per share amounts, basic and diluted
|
|
|
87,893
|
|
|
|
85,567
|
|
|
|
86,983
|
|
|
|
84,977
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Includes equity based compensation and related taxes as
follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of goods sold
|
|
$
|
459
|
|
|
$
|
117
|
|
|
$
|
1,091
|
|
|
$
|
474
|
|
Customer service and merchant fees
|
|
|
770
|
|
|
|
620
|
|
|
|
2,636
|
|
|
|
2,108
|
|
Selling, operations, technology, general and administrative
|
|
|
20,858
|
|
|
|
13,951
|
|
|
|
68,899
|
|
|
|
49,371
|
|
|
|
$
|
22,087
|
|
|
$
|
14,688
|
|
|
$
|
72,626
|
|
|
$
|
51,953
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WAYFAIR INC.
|
|
CONSOLIDATED AND CONDENSED STATEMENTS OF CASH FLOWS
|
(In thousands)
|
(Unaudited)
|
|
|
Year Ended December 31,
|
|
|
2017
|
|
2016
|
Cash flows from operating activities
|
|
|
|
|
Net loss
|
|
$
|
(244,614
|
)
|
|
$
|
(194,375
|
)
|
Adjustments to reconcile net loss to net cash used in operating
activities
|
|
|
|
|
Depreciation and amortization
|
|
87,020
|
|
|
55,572
|
|
Equity based compensation
|
|
67,840
|
|
|
49,402
|
|
Amortization of discount and issuance costs on convertible notes
|
|
5,830
|
|
|
—
|
|
Other non-cash adjustments
|
|
1,198
|
|
|
331
|
|
Changes in operating assets and liabilities:
|
|
|
|
|
Accounts receivable
|
|
(18,172
|
)
|
|
(9,217
|
)
|
Inventories
|
|
(9,454
|
)
|
|
1,351
|
|
Prepaid expenses and other current assets
|
|
(39,124
|
)
|
|
(16,179
|
)
|
Accounts payable and accrued expenses
|
|
104,184
|
|
|
126,013
|
|
Deferred revenue and other liabilities
|
|
81,354
|
|
|
51,914
|
|
Other assets
|
|
(2,428
|
)
|
|
(1,998
|
)
|
Net cash provided by operating activities
|
|
33,634
|
|
|
62,814
|
|
|
|
|
|
|
Cash flows from investing activities
|
|
|
|
|
Purchase of short-term and long-term investments
|
|
(54,551
|
)
|
|
(88,112
|
)
|
Sale and maturities of short-term investments
|
|
71,095
|
|
|
119,810
|
|
Purchase of property and equipment
|
|
(100,451
|
)
|
|
(96,707
|
)
|
Site and software development costs
|
|
(46,428
|
)
|
|
(31,379
|
)
|
Cash received from the sale of a business (net of cash sold)
|
|
—
|
|
|
1,508
|
|
Other investing activities, net
|
|
—
|
|
|
(1,000
|
)
|
Net cash used in investing activities
|
|
(130,335
|
)
|
|
(95,880
|
)
|
|
|
|
|
|
Cash flows from financing activities
|
|
|
|
|
Proceeds from issuance of convertible notes, net of issuance costs
|
|
420,449
|
|
|
—
|
|
Premiums paid for capped call confirmations
|
|
(44,160
|
)
|
|
—
|
|
Taxes paid related to net share settlement of equity awards
|
|
(1,562
|
)
|
|
(21,092
|
)
|
Net proceeds from exercise of stock options
|
|
244
|
|
|
209
|
|
Net cash provided by (used in) financing activities
|
|
374,971
|
|
|
(20,883
|
)
|
Effect of exchange rate changes on cash and cash equivalents
|
|
850
|
|
|
(387
|
)
|
Net increase (decrease) in cash and cash equivalents
|
|
279,120
|
|
|
(54,336
|
)
|
Cash and cash equivalents
|
|
|
|
|
Beginning of year
|
|
279,840
|
|
|
334,176
|
|
End of year
|
|
$
|
558,960
|
|
|
$
|
279,840
|
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20180222005375/en/
Source: Wayfair Inc.