Wayfair continues to make itself a little less worse. It could soon be better off.
When reporting on his financial results for the fourth quarter and summarizing his financial year, Wayfair showed small steps in the right direction. The e-commerce giant had profits in its top line for this last quarter, even when the results of the year as a whole were still in a negative area. But the company lost money for both the quarter and the year, if less than in the corresponding periods of one year.
Wayfair, who specializes in a large part of its existence in a pink view, defended the results as a sign that things were not only better-sie-sie-sie-sie were better than better. “The fourth quarter was a strong end of the year over several fronts,” said CEO and co -founder Niraj Shah in the report. “From the point of view of the topline performance, we ended in 2024 with a high level with net turnover, which showed positive growth compared to the previous year. These results enabled us to achieve almost $ 100 million in adjusted EBITDA in the quarter and to achieve our goal of around 50% compared to the previous year's growth for 2024. “
It is true that many of the results created from the compensation showed an improvement, including EBITDA (profits before interest, taxes, depreciation and amortization). The net turnover per active customer was $ 555 in the fourth quarter, which increased an increase of 3.4 percent compared to the previous year. Orders per customer amounted to 1.85 for the fourth quarter, slightly rose from 1.84 and the average order value $ 290 compared to USD $ 27.
Nevertheless, some of the other matrices were less encouraging. The active customers were 21.4 million in the fourth quarter and a decline of 4.5 percent compared to the previous year. The orders delivered amounted to 10.7 million, a decrease of 5.3 percent. And regular customers made 8.5 million orders, a decrease of 5.6 percent compared to the previous year.
For the year, Wayfair generated sales of 11.9 billion US dollars, a decrease of $ 152 million (1.3 percent) compared to the previous year. The US income, which makes up around 90 percent of the company's total sales, declined by 1 percent. The net turnover in the fourth quarter amounted to $ 3.1 billion, an increase of $ 7 million (0.2 percent).
In the fourth quarter, the net loss was $ 128 million compared to $ 174 million in the previous year. For the whole year, the net loss of Wayfair was 492 million US dollars, about a third less than 738 million US dollars in the last financial year.
During the call with analysts after the yield report, Shah mentioned some other current elements. He said: “We are already quickly at work in our second Wayfair business”, but did not state any details about timing or location and announced that the company will open the first two Perigold store later this year. He also spoke about the start of Muse, Wayfair's new AI-controlled shopping tool that has replaced Decreey. Shah also mentioned the previously announced exit of the company from the German market and said that it wanted to focus on more profitable business areas.
Shah said the improvements of the overall results of Wayfair enable the company to take better financing agreements, which helps to search for profitability. “We act intelligent, high-ranking investments throughout the company and are also obliged to increase the adjusted EBITDA dollar from year to year,” he said in the winning report. “We are confident that this approach for a convincing payout over 2025 is well prepared and we look forward to taking all of our stakeholders with you on this next stage of the Wayfair trip.”
This journey still largely depends on the general health of the market institution market, which shows a lean sign of recovery, but it is fighting to hide a consumer who is still bought out of the pandemic fuel feed grass. During this increase, Wayfair registered his first profitable quarters in its eleven -year history as a stock corporation. A return to these black-in-in days has been difficult to grasp since then, but at least according to Shah it is exactly the next living room corner.
The Wall Street seemed to have a mixed reaction to this action: Wayfair's share was scored on Thursday morning when the results were released, but most of them regained and ended less than 1 percent. Wayfair's share price has achieved almost $ 38 of US dollars in November last year last year last year last May last year. If investors ever send Wayfair back to the heights from the pandemic (if their stock is traded over $ 300), the small steps of the company must grow in the right direction.