"We are extremely pleased to report yet another year of exceptional growth with total net revenue up $1.1 billion to $3.4 billion in 2016," said Niraj Shah, CEO, co-founder and co-chairman, Wayfair. "As we continue to rapidly gain market share in the approximately $600 billion home category across North America and Europe, we are reaping the gains from the large, long-term investments we have been making over the past few years.
"Our largest investment is in our international business in Canada, the United Kingdom and Germany, where we are starting to see real traction and increased brand awareness. In the U.S., we are also investing in our proprietary logistics network, including CastleGate and the Wayfair Delivery Network, as well as in newer categories, such as home improvement and housewares. Even with this substantial ongoing investment in our U.S. business, the U.S. business continues to deliver strong results.
"In 2017, our team will continue to innovate at a rapid speed to deliver on a number of strategic initiatives that will solidly reinforce Wayfair's leadership position as the best place to shop for home." Beginning in the fourth quarter of 2016, Wayfair changed its operating and reportable segments from one segment to two segments, U.S. and International.
Fourth Quarter 2016 Financial Highlights:
- Direct Retail net revenue, consisting of sales generated primarily through Wayfair's five sites, increased $273.4 million to $959.0 million, up 39.9 percent year over year
-Total net revenue increased $244.8 million to $984.6 million, up 33.1 percent year over year
- Gross profit was $238.6 million or 24.2 percent of total net revenue
-GAAP net loss was $44.0 million
-Adjusted EBITDA was $(12.0) million or (1.2) percent of total net revenue
-GAAP basic and diluted net loss per share was $0.51
-Non-GAAP diluted net loss per share was $0.34
- Non-GAAP free cash flow was $48.7 million
-At the end of the fourth quarter, cash, cash equivalents, and short-term and long-term investments totaled $379.6 million
Full Year 2016 Financial Highlights:
-Direct Retail net revenue increased $1.2 billion to $3.3 billion, up 59.7 percent year over year
-Total net revenue increased $1.1 billion to $3.4 billion, up 50.2 percent year over year
-GAAP net loss was $194.4 million
-Adjusted EBITDA was $(88.7) million or (2.6) percent of total net revenue
-Non-GAAP free cash flow was $(65.3) million
Other Fourth Quarter Highlights:
-The number of active customers in our Direct Retail business reached 8.3 million as of December 31, 2016, an increase of 53.9 percent year over year
-LTM net revenue per active customer was $395 as of December 31, 2016, an increase of 3.7 percent year over year
-Orders per customer, measured as LTM orders divided by active customers, was 1.70 for the fourth quarter, down from 1.71 year over year
-Repeat customers placed 58.0 percent of total orders in the fourth quarter of 2016, compared to 54.3 percent in the fourth quarter of 2015
-Repeat customers placed 2.7 million orders in the fourth quarter of 2016, an increase of 63.1 percent year over year
-Orders delivered in the fourth quarter of 2016 were 4.7 million, an increase of 52.8 percent year over year
-Average order value was $203 for the fourth quarter of 2016, compared to $222 in the fourth quarter of 2015
-In the fourth quarter of 2016, 43.3 percent of total orders delivered for our Direct Retail business were placed via a mobile device, compared to 36.4 percent in the fourth quarter of 2015