Wayfair Announces Third Quarter 2021 Results

11/04/2021

Q3 Net Revenue of $3.1 billion

29.2 million Active Customers, up 1.5% 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 third quarter ended September 30, 2021.

Third Quarter 2021 Financial Highlights

  • Total net revenue of $3.1 billion decreased $718.5 million, down 18.7% year over year
  • U.S. net revenue of $2.6 billion decreased $679.9 million, down 20.8% year over year
  • International net revenue of $0.5 billion decreased $38.6 million, down 6.8% year over year. International Net Revenue Constant Currency Growth was (12.1)%
  • Gross profit was $882.7 million or 28.3% of total net revenue
  • Net loss was $78.0 million and Non-GAAP Adjusted EBITDA was $101.1 million
  • Diluted loss per share was $(0.75)
  • Non-GAAP Adjusted Diluted Earnings per Share was $0.14
  • Net cash for operating activities was $(130.8) million and Non-GAAP Free Cash Flow was $(203.2) million
  • Cash, cash equivalents and short-term investments totaled $2.4 billion 

“Wayfair delivered $3.1 billion in net revenue and over $100 million of adjusted EBITDA in the third quarter. As various geographies reopened post-pandemic, consumers naturally shifted some spend towards travel and entertainment and from e-commerce towards brick and mortar. Demand and interest in the home remains resilient, but it will take a few more quarters for our growth – and e-commerce growth in general – to get back to normal,” said Niraj Shah, CEO, co-founder and co-chairman, Wayfair. “Our long-term vision is in sharp focus coming out of the pandemic period. The initiatives required to realize it are in flight, even as we work through near-term macro challenges like supply chain congestion and related inflation. We are, as ever, focused on the long-term, balancing strong growth and profitability over years not quarters, and solidifying our position as the definitive destination for the home.”

Other Third Quarter Highlights

  • Active customers reached 29.2 million as of September 30, 2021, an increase of 1.5% year over year
  • LTM net revenue per active customer was $484 as of September 30, 2021, an increase of 7.3% year over year
  • Orders per customer, measured as LTM orders divided by active customers, was 1.92 for the third quarter of 2021, compared to 1.94 for the third quarter of 2020
  • Repeat customers placed 76.3% of total orders in the third quarter of 2021, compared to 71.9% in the third quarter of 2020
  • Repeat customers placed 8.4 million orders in the third quarter of 2021, a decrease of 25.8% year over year
  • Orders delivered in the third quarter of 2021 were 11.0 million, a decrease of 30.1% year over year
  • Average order value was $283 for the third quarter of 2021, compared to $243 for the third quarter of 2020
  • In the third quarter of 2021, 57.7% of total orders delivered were placed via a mobile device, compared to 60.0% in the third quarter of 2020

Key Financial and Operating Metrics

 

 

Three months ended September 30,

 

Nine months ended September 30,

 

 

2021

 

2020

 

2021

 

2020

 

 

(in thousands, except LTM Net Revenue per Active Customer, Average Order Value and per share data)

Key Financial Statement Metrics:

 

 

 

 

 

 

 

 

Net revenue

 

$

3,121,083

 

$

3,839,570

 

$

10,456,227

 

$

10,474,305

Gross profit

 

$

882,728

 

$

1,147,428

 

$

3,013,815

 

$

3,047,581

(Loss) income from operations

 

$

(69,798)

 

$

221,854

 

$

101,751

 

$

259,784

Net (loss) income

 

$

(78,021)

 

$

173,166

 

$

70,641

 

$

161,178

(Loss) earnings per share:

 

 

 

 

 

 

 

 

Basic

 

$

(0.75)

 

$

1.82

 

$

0.68

 

$

1.70

Diluted

 

$

(0.75)

 

$

1.67

 

$

0.65

 

$

1.64

Net cash (for) from operating activities

 

$

(130,848)

 

$

331,027

 

$

321,187

 

$

1,209,988

Key Operating Metrics:

 

 

 

 

 

 

 

 

Active customers (1)

 

29,213

 

 

28,783

 

 

29,213

 

 

28,783

 

LTM net revenue per active customer (2)

 

$

484

 

 

$

451

 

 

$

484

 

 

$

451

 

Orders delivered (3)

 

11,016

 

 

15,758

 

 

39,597

 

 

44,526

 

Average order value (4)

 

$

283

 

 

$

243

 

 

$

264

 

 

$

235

 

Non-GAAP Financial Measures:

 

 

 

 

 

 

 

 

Adjusted EBITDA

 

$

101,051

 

 

$

371,112

 

 

$

617,658

 

 

$

683,648

 

Free Cash Flow

 

$

(203,167)

 

 

$

255,028

 

 

$

114,960

 

 

$

954,007

 

Adjusted Diluted Earnings per Share

 

$

0.14

 

 

$

2.30

 

 

$

3.08

 

 

$

3.77

 

(1)

 

 The number of active customers represents the total number of individual customers who have purchased at least once directly from our sites during the preceding twelve-month period.

(2)

 

 LTM net revenue per active customer represents our total net revenue in the last twelve months divided by our total number of active customers for the same preceding twelve-month period.

(3)

 

 Orders delivered represents the total orders delivered in any period, inclusive of orders that may eventually be returned.

(4)

 

 We define average order value as total net revenue in a given period divided by the orders delivered in that period.

Webcast and Conference Call

Wayfair will host a conference call and webcast to discuss its third quarter 2021 financial results today at 8 a.m. (ET). Investors and participants should register for the call in advance by visiting https://bit.ly/39M9PMA and entering the conference ID number 4187968. After registering, instructions will be shared on how to join the call. The call will also be available via live webcast at https://bit.ly/3AbyW5Z and supporting slides will be available at investor.wayfair.com. An archive of the webcast conference call will be available shortly after the call ends at http://investor.wayfair.com.

About Wayfair

Wayfair is the destination for all things home: helping everyone, anywhere create their feeling of home. From expert customer service, to the development of tools that make the shopping process easier, to carrying one of the widest and deepest selections of items for every space, style, and budget, Wayfair gives everyone the power to create spaces that are just right for them.

The Wayfair family of sites includes:

  • Wayfair - Everything home for every budget.
  • Joss & Main - Stylish designs to discover daily.
  • AllModern - The best of modern, priced for real life.
  • Birch Lane - Classic home. Comfortable cost.
  • Perigold - The widest-ever selection of luxury home furnishings.

Wayfair generated $14.1 billion in net revenue for the twelve months ended September 30, 2021. Headquartered in Boston, Massachusetts with operations throughout North America and Europe, Wayfair employs approximately 16,000 people.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of federal and state securities laws. All statements other than statements of historical fact contained in this press release, including statements regarding our investment plans and anticipated returns on those investments, our future customer growth, our future results of operations and financial position, available liquidity and access to financing sources, our business strategy, plans and objectives of management for future operations, consumer activity and behaviors, e-commerce adoption trends, developments in our technology and systems, constrained labor markets, disruptions, capacity constraints or inefficiencies in our supply chain or logistics network, including increased shipping costs, our future real estate plans, and anticipated results of those developments and the impact of the novel coronavirus (COVID-19) pandemic and our response to it, 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.

A list and description of risks, uncertainties and other factors that could cause or contribute to differences in our results can be found in our filings with the Securities and Exchange Commission, including our most recent Annual Report on Form 10-K and subsequent filings. We qualify all of our forward-looking statements by these cautionary statements.

WAYFAIR INC.
CONSOLIDATED AND CONDENSED BALANCE SHEETS
(Unaudited)

 

 

September 30,
2021

 

December 31,
2020

 

 

(in thousands, except share and per share data)

Assets:

 

 

 

 

Current assets

 

 

 

 

Cash and cash equivalents

 

$

1,864,821

 

 

$

2,129,440

 

Short-term investments

 

528,392

 

 

461,698

 

Accounts receivable, net

 

166,497

 

 

110,299

 

Inventories

 

66,621

 

 

52,152

 

Prepaid expenses and other current assets

 

328,862

 

 

292,213

 

Total current assets

 

2,955,193

 

 

3,045,802

 

Operating lease right-of-use assets

 

816,951

 

 

808,375

 

Property and equipment, net

 

653,673

 

 

684,306

 

Other non-current assets

 

40,400

 

 

31,446

 

Total assets

 

$

4,466,217

 

 

$

4,569,929

 

Liabilities and Stockholders' Deficit:

 

 

 

 

Current liabilities

 

 

 

 

Accounts payable

 

$

1,072,529

 

 

$

1,156,624

 

Other current liabilities

 

957,963

 

 

1,008,970

 

Total current liabilities

 

2,030,492

 

 

2,165,594

 

Long-term debt

 

3,049,475

 

 

2,659,243

 

Operating lease liabilities

 

867,595

 

 

869,958

 

Other non-current liabilities

 

48,736

 

 

67,031

 

Total liabilities

 

5,996,298

 

 

5,761,826

 

Stockholders’ deficit:

 

 

 

 

Convertible preferred stock, $0.001 par value per share: 10,000,000 shares authorized and none issued at September 30, 2021 and December 31, 2020

 

 

 

 

Class A common stock, par value $0.001 per share: 500,000,000 shares authorized, 77,666,738 and 72,980,490 shares issued and outstanding at September 30, 2021 and December 31, 2020

 

78

 

 

73

 

Class B common stock, par value $0.001 per share: 164,000,000 shares authorized, 26,563,761 and 26,564,234 shares issued and outstanding at September 30, 2021 and December 31, 2020

 

26

 

 

27

 

Additional paid-in capital

 

221,733

 

 

698,482

 

Accumulated deficit

 

(1,747,030)

 

 

(1,885,950)

 

Accumulated other comprehensive loss

 

(4,888)

 

 

(4,529)

 

Total stockholders’ deficit

 

(1,530,081)

 

 

(1,191,897)

 

Total liabilities and stockholders’ deficit

 

$

4,466,217

 

 

$

4,569,929

 

Note: Wayfair adopted a new accounting standards update for debt effective January 1, 2021. The adoption of this standards update had no effect on prior periods.

WAYFAIR INC.
CONSOLIDATED AND CONDENSED STATEMENTS OF OPERATIONS
(Unaudited)

 

 

Three months ended September 30,

 

Nine months ended September 30,

 

 

2021

 

2020

 

2021

 

2020

 

 

(in thousands, except per share data)

Net revenue

 

$

3,121,083

 

 

$

3,839,570

 

 

$

10,456,227

 

 

$

10,474,305

 

Cost of goods sold (1)

 

2,238,355

 

 

2,692,142

 

 

7,442,412

 

 

7,426,724

 

Gross profit

 

882,728

 

 

1,147,428

 

 

3,013,815

 

 

3,047,581

 

Operating expenses:

 

 

 

 

 

 

 

 

Customer service and merchant fees (1)

 

139,931

 

 

139,589

 

 

431,802

 

 

372,825

 

Advertising

 

315,024

 

 

344,025

 

 

1,032,662

 

 

1,037,562

 

Selling, operations, technology, general and administrative (1)

 

497,571

 

 

441,960

 

 

1,435,388

 

 

1,377,410

 

Customer service center impairment and other charges

 

 

 

 

 

12,212

 

 

 

Total operating expenses

 

952,526

 

 

925,574

 

 

2,912,064

 

 

2,787,797

 

(Loss) income from operations

 

(69,798)

 

 

221,854

 

 

101,751

 

 

259,784

 

Interest expense, net

 

(8,406)

 

 

(36,315)

 

 

(23,620)

 

 

(87,472)

 

Other income (expense), net

 

3,889

 

 

(13,584)

 

 

(1,657)

 

 

(10,720)

 

(Loss) income before income taxes

 

(74,315)

 

 

171,955

 

 

76,474

 

 

161,592

 

Provision (benefit) for income taxes, net

 

3,706

 

 

(1,211)

 

 

5,833

 

 

414

 

Net (loss) income

 

$

(78,021)

 

 

$

173,166

 

 

$

70,641

 

 

$

161,178

 

(Loss) earnings per share:

 

 

 

 

 

 

 

 

Basic

 

$

(0.75)

 

 

$

1.82

 

 

$

0.68

 

 

$

1.70

 

Diluted (2)

 

$

(0.75)

 

 

$

1.67

 

 

$

0.65

 

 

$

1.64

 

Weighted-average number of shares of common stock outstanding used in computing per share amounts:

 

 

 

 

 

 

 

 

Basic

 

104,054

 

 

95,373

 

 

103,579

 

94,767

 

Diluted

 

104,054

 

 

109,200

 

 

106,600

 

98,021

 

(1)

 

Includes equity-based compensation and related taxes as follows:

   

Cost of goods sold

 

$

2,853

 

 

$

2,845

 

 

$

8,944

 

 

$

6,926

 

   

Customer service and merchant fees

 

6,879

 

 

4,477

 

 

18,974

 

 

10,909

 

   

Selling, operations, technology, general and administrative

 

79,200

 

 

69,361

 

 

235,623

 

 

193,541

 

   

 

 

$

88,932

 

 

$

76,683

 

 

$

263,541

 

 

$

211,376

 

(2)

 

Wayfair adopted a new accounting standards update for debt effective January 1, 2021. If Wayfair had not adopted the standard January 1, 2021, Wayfair's diluted loss per share would have been $(1.03) and $(0.36) for the three and nine months ended September 30, 2021.

WAYFAIR INC.
CONSOLIDATED AND CONDENSED STATEMENTS OF CASH FLOWS
(Unaudited)

 

 

Nine months ended September 30,

 

 

2021

 

2020

 

 

(in thousands)

Cash flows from operating activities:

 

 

 

 

Net income

 

$

70,641

 

 

$

161,178

 

Adjustments to reconcile net income to net cash from operating activities:

 

 

 

 

Depreciation and amortization

 

240,154

 

 

208,532

 

Equity-based compensation

 

237,073

 

 

197,199

 

Amortization of discount and issuance costs on convertible notes

 

5,873

 

 

78,225

 

Loss on impairment

 

12,212

 

 

 

Other non-cash adjustments

 

2,483

 

 

12,065

 

Changes in operating assets and liabilities:

 

 

 

 

Accounts receivable, net

 

(57,568)

 

 

(14,891)

 

Inventories

 

(14,823)

 

 

7,602

 

Prepaid expenses and other current assets

 

(37,982)

 

 

(93,055)

 

Other assets

 

833

 

 

612

 

Accounts payable and other current liabilities

 

(133,234)

 

 

597,173

 

Other liabilities

 

(4,475)

 

 

55,348

 

Cash flows from operating activities

 

321,187

 

 

1,209,988

 

 

 

 

 

 

Cash flows from investing activities:

 

 

 

 

Purchase of short- and long-term investments

 

(774,708)

 

 

(19,994)

 

Sale and maturities of short- and long-term investments

 

701,091

 

 

466,310

 

Purchase of property and equipment

 

(77,593)

 

 

(146,303)

 

Site and software development costs

 

(128,634)

 

 

(109,678)

 

Other investing activities, net

 

5,200

 

 

(124)

 

Net cash (for) from investing activities

 

(274,644)

 

 

190,211

 

 

 

 

 

 

Cash flows from financing activities:

 

 

 

 

Repurchase of common stock

 

(300,208)

 

 

(280,236)

 

Proceeds from borrowings

 

 

 

200,000

 

Repayment of borrowings

 

 

 

(200,000)

 

Proceeds from issuance of convertible notes, net of issuance costs

 

 

 

2,027,758

 

Premiums paid for capped call confirmations

 

 

 

(255,024)

 

Payments to extinguish convertible debt

 

 

 

(1,040,349)

 

Other financing activities, net

 

(2,448)

 

 

380

 

Net cash (for) from financing activities

 

(302,656)

 

 

452,529

 

Effect of exchange rate changes on cash and cash equivalents

 

(8,506)

 

 

7,458

 

Net (decrease) increase in cash and cash equivalents

 

(264,619)

 

 

1,860,186

 

 

 

 

 

 

Cash and cash equivalents:

 

 

 

 

Beginning of period

 

2,129,440

 

 

582,753

 

End of period

 

$

1,864,821

 

 

$

2,442,939

 

Non-GAAP Financial Measures

To supplement our 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, Free Cash Flow, Adjusted Diluted Earnings per Share and Net Revenue Constant Currency Growth. We use these non-GAAP financial measures internally in analyzing our financial results and believe they are useful to investors, as a supplement to GAAP measures, in evaluating our ongoing operational performance. We have provided a reconciliation of these non-GAAP financial measures to the most directly comparable GAAP financial measure in this earnings release.

Net Revenue Constant Currency Growth is a non-GAAP financial measure that is calculated by translating the current period local currency net revenue by the currency exchange rates used to translate the financial statements in the comparable prior-year period. We believe Net Revenue Constant Currency Growth is an important indicator of our business performance, as it provides useful information to investors and others in understanding and evaluating trends in our operating results in the same manner as our management.

Adjusted EBITDA is a non-GAAP financial measure that is calculated as net (loss) income before depreciation and amortization, equity-based compensation and related taxes, interest expense, net, other income (expense), net, provision (benefit) for income taxes, net, non-recurring items and other items not indicative of our ongoing operating performance. We have included Adjusted EBITDA in this earnings release because it is a key measure used by our management and our board of directors to evaluate our 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 as these costs may vary independent of business performance. For instance, we exclude the impact of equity-based compensation and related taxes as we do not consider this item to be indicative of our core operating performance. Investors should, however, understand that equity-based compensation and related taxes will be a significant recurring expense in our business and an important part of the compensation provided to our employees. Accordingly, we believe 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 directors.

Adjusted Diluted Earnings per Share is a non-GAAP financial measure that is calculated as net (loss) income plus equity-based compensation and related taxes, provision (benefit) for income taxes, net, non-recurring items and other items not indicative of our ongoing operating performance, and, if dilutive, interest expense associated with convertible debt instruments under the if-converted method divided by the weighted-average number of shares of common stock used in the computation of diluted (loss) earnings per share. We believe that these adjustments to our adjusted diluted net income before calculating per share amounts for all periods presented provides a more meaningful comparison between our operating results from period to period.

Free Cash Flow is a non-GAAP financial measure that is calculated as net cash from or for operating activities less net cash used to purchase property and equipment and site and software development costs (collectively, "Capital Expenditures"). We believe Free Cash Flow is an important indicator of our business performance, as it measures the amount of cash we generate. Accordingly, we believe that Free Cash Flow provides useful information to investors and others in understanding and evaluating our operating results in the same manner as our management.

We calculate forward-looking non-GAAP Adjusted EBITDA based on internal forecasts that omit certain amounts that would be included in forward-looking GAAP net (loss) income. We do not attempt to provide a reconciliation of forward-looking non-GAAP Adjusted EBITDA guidance to forward looking GAAP net (loss) income because forecasting the timing or amount of items that have not yet occurred and are out of our control is inherently uncertain and unavailable without unreasonable efforts. Further, we believe that such reconciliations would imply a degree of precision and certainty that could be confusing to investors. Such items could have a substantial impact on GAAP measures of financial performance.

The non-GAAP measures have limitations as analytical tools. We do not, nor do we 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 we use 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 our industry.

The following tables present net revenues attributable to our reportable segments for the periods indicated:

 

 

Three Months Ended September 30,

 

Nine Months Ended September 30,

 

 

2021

 

2020

 

2021

 

2020

 

 

(in thousands)

U.S. net revenue

 

$

2,594,964

 

 

$

3,274,872

 

 

$

8,513,807

 

 

$

8,901,559

 

International net revenue

 

526,119

 

 

564,698

 

 

1,942,420

 

 

1,572,746

 

Total net revenue

 

$

3,121,083

 

 

$

3,839,570

 

 

$

10,456,227

 

 

$

10,474,305

 

The following table reflects the reconciliation of net (loss) income to Adjusted EBITDA for each of the periods indicated:

 

 

Three months ended September 30,

 

Nine months ended September 30,

 

 

2021

 

2020

 

2021

 

2020

 

 

(in thousands)

Reconciliation of Adjusted EBITDA

 

 

 

 

 

 

 

 

Net (loss) income

 

$

(78,021)

 

$

173,166

 

$

70,641

 

$

161,178

Depreciation and amortization

 

81,917

 

72,575

 

240,154

 

208,532

Equity-based compensation and related taxes

 

88,932

 

76,683

 

263,541

 

211,376

Interest expense, net

 

8,406

 

36,315

 

23,620

 

87,472

Other (income) expense, net

 

(3,889)

 

13,584

 

1,657

 

10,720

Provision (benefit) for income taxes, net

 

3,706

 

(1,211)

 

5,833

 

414

Other (1)

 

 

 

12,212

 

3,956

Adjusted EBITDA

 

$

101,051

 

 

$

371,112

 

 

$

617,658

 

 

$

683,648

 

 

(1)

 

 In the nine months ended September 30, 2021, we recorded $12.2 million of customer service center impairment and other charges related to our plan to consolidate customer service centers. During the nine months ended September 30, 2020, we recorded $4.0 million in selling, operations, technology, general and administrative expenses for severance costs associated with February 2020 workforce reductions.

The following table presents Adjusted EBITDA attributable to our segments, and the reconciliation of net (loss) income to Adjusted EBITDA is presented in the preceding table:

 

 

Three months ended September 30,

 

Nine months ended September 30,

 

 

2021

 

2020

 

2021

 

2020

 

 

(in thousands)

Segment Adjusted EBITDA

 

 

 

 

 

 

 

 

U.S.

 

$

167,091

 

 

$

377,007

 

 

$

716,887

 

 

$

766,486

 

International

 

(66,040)

 

 

(5,895)

 

 

(99,229)

 

 

(82,838)

 

Adjusted EBITDA

 

$

101,051

 

 

$

371,112

 

 

$

617,658

 

 

$

683,648

 

A reconciliation of the numerator and denominator for diluted (loss) earnings per share, the most directly comparable GAAP financial measure, to the numerator and denominator for Adjusted Diluted Earnings per Share, in order to calculate Adjusted Diluted Earnings per Share is as follows:

 

 

Three months ended
September 30,

 

Nine months ended
September 30,

 

 

2021

 

2020

 

2021

 

2020

 

 

(in thousands, except per share data)

Numerator:

 

 

 

 

 

 

 

 

Net (loss) income

 

$

(78,021)

 

 

$

173,166

 

 

$

70,641

 

 

$

161,178

 

Effect of dilutive securities:

 

 

 

 

 

 

 

 

Interest expense (income) associated with convertible debt instruments

 

 

 

9,136

 

 

(1,568)

 

 

 

Numerator for diluted EPS - net (loss) income available to common stockholders after the effect of dilutive securities

 

(78,021)

 

 

182,302

 

 

69,073

 

 

161,178

 

Adjustments to net (loss) income:

 

 

 

 

 

 

 

 

Interest expense associated with convertible debt instruments

 

 

 

19,919

 

 

25,483

 

 

10,819

 

Equity-based compensation and related taxes

 

88,932

 

 

76,683

 

 

263,541

 

 

211,376

 

Provision (benefit) for income taxes, net

 

3,706

 

 

(1,211)

 

 

5,833

 

 

414

 

Other

 

 

 

 

 

12,212

 

3,956

Numerator for Adjusted Diluted EPS - Adjusted net income

 

$

14,617

 

 

$

277,693

 

 

$

376,142

 

 

$

387,743

 

Denominator:

 

 

 

 

 

 

 

 

Denominator for basic EPS - weighted-average number of shares of common stock outstanding

 

104,054

 

 

95,373

 

 

103,579

 

 

94,767

 

Effect of dilutive securities:

 

 

 

 

 

 

 

 

Employee stock options

 

 

 

24

 

 

6

 

 

32

 

Restricted stock units

 

 

 

4,123

 

 

2,785

 

 

3,222

 

Convertible debt instruments

 

 

 

9,680

 

 

230

 

 

 

Dilutive potential common shares

 

 

 

13,827

 

 

3,021

 

 

3,254

 

Denominator for diluted EPS - adjusted weighted-average number of shares of common stock outstanding after the effect of dilutive securities

 

104,054

 

 

109,200

 

 

106,600

 

 

98,021

 

Adjustments to effect of dilutive securities:

 

 

 

 

 

 

 

 

Restricted stock units

 

2,011

 

 

 

 

 

 

 

Convertible debt instruments

 

 

 

11,330

 

 

15,551

 

 

4,740

 

Denominator for Adjusted Diluted EPS - adjusted weighted-average number of shares of common stock outstanding after the effect of dilutive securities

 

106,065

 

 

120,530

 

 

122,151

 

 

102,761

 

Diluted (Loss) Earnings per Share

 

$

(0.75)

 

 

$

1.67

 

 

$

0.65

 

 

$

1.64

 

Adjusted Diluted Earnings per Share

 

$

0.14

 

 

$

2.30

 

 

$

3.08

 

 

$

3.77

 

The following table presents a reconciliation of net cash from or for operating activities to Free Cash Flow for each of the periods indicated:

 

 

Three months ended September 30,

 

Nine months ended September 30,

 

 

2021

 

2020

 

2021

 

2020

 

 

(in thousands)

Net cash (for) from operating activities

 

$

(130,848)

 

 

$

331,027

 

 

$

321,187

 

 

$

1,209,988

 

Purchase of property and equipment

 

(28,521)

 

 

(41,493)

 

 

(77,593)

 

 

(146,303)

 

Site and software development costs

 

(43,798)

 

 

(34,506)

 

 

(128,634)

 

 

(109,678)

 

Free Cash Flow

 

$

(203,167)

 

 

$

255,028

 

 

$

114,960

 

 

$

954,007

 

 

Media Relations Contact:
Jane Carpenter, 617-502-7595
PR@wayfair.com

Investor Relations Contact:
Jane Gelfand
IR@wayfair.com

Source: Wayfair Inc.