W Stock Price Increased 10%: Why It Happened

By Amit Chowdhry ● Aug 5, 2021
  • The stock price of Wayfair Inc (NYSE: W) increased by 10% today. This is why it happened.

The stock price of Wayfair Inc (NYSE: W) increased by 10% today. Investors are responding positively to Wayfair’s financial results for its second quarter ended June 30, 2021.

Q2 2021 Financial Highlights:

— Total net revenue of $3.9 billion decreased $0.4 billion, down 10.4% year over year

— U.S. net revenue of $3.1 billion decreased $0.6 billion, down 15.2% year over year

— International net revenue of $0.8 billion increased $0.1 billion, up 16.3% year over year. International Net Revenue Constant Currency Growth was 3.2%

— Gross profit was $1.1 billion or 29.2% of total net revenue

— Net income was $130.4 million and Non-GAAP Adjusted EBITDA was $310.8 million

— Diluted earnings per share was $1.14

— Non-GAAP Adjusted Diluted Earnings per Share was $1.89

— Net cash from operating activities was $275.4 million and Non-GAAP Free Cash Flow was $206.9 million

— Cash, cash equivalents and short-term investments totaled $2.6 billion

Other Q2 Highlights:

— The number of active customers reached 31.1 million as of June 30, 2021, an increase of 19.6% year over year

— LTM net revenue per active customer was $478 as of June 30, 2021, an increase of 8.6% year over year

— Orders per customer, measured as LTM orders divided by active customers, was 1.96 for the second quarter of 2021, compared to 1.89 for the second quarter of 2020

— Repeat customers placed 75.6% of total orders in the second quarter of 2021, compared to 67.4% in the second quarter of 2020

— Repeat customers placed 10.5 million orders in the second quarter of 2021, a decrease of 17.6% year over year

— Orders delivered in the second quarter of 2021 were 13.9 million, a decrease of 26.5% year over year

— Average order value was $278 for the second quarter of 2021, compared to $227 for the second quarter of 2020

— In the second quarter of 2021, 59.4% of total orders delivered were placed via a mobile device, compared to 60.6% in the second quarter of 2020

KEY QUOTE:

“Wayfair delivered $3.9 billion in net revenue in Q2 — well above pre-pandemic run-rates, even as we began to lap the early heights of COVID-related lockdowns in 2020. While the current macro environment is dynamic, the home remains a high priority for our customers and longer term tailwinds to online category growth are firmly in place. Meaningful adjusted EBITDA and free cash flow in Q2 also reflect strong returns from many years of thoughtful investments behind each facet of our platform model. Even as we navigate any near-term volatility, we remain most focused on the long-term and further reinforcing Wayfair’s position as the category leader for home with both customers and suppliers alike.”

— Niraj Shah, CEO, co-founder and co-chairman, Wayfair

Disclaimer: This content is intended for informational purposes. Before making any investment, you should do your own analysis.