Why Wayfair (W) Shares Are Jumping Today - Wayfair (NYSE:W)

Wayfair Inc W shares jumped Thursday after its Street-beating Q1 results. The company also foresees positive Adjusted EBITDA in Q2.
W reported a first-quarter FY23 sales decline of 7.3% year-on-year to $2.77 billion, beating the consensus of $2.75 billion.
International net revenue fell 20.4% to $359 million, while U.S. revenue declined 5% to $2.4 billion.
The number of active customers reached 21.7 million as of March 31, 2023, a 14.6% decrease Y/Y. The average order value remained flat at $287.
In Q1, 62.1% of total orders delivered were placed through a mobile device, versus 59.4% last year.
Adjusted EPS loss of $(1.13) beat the analyst consensus of $(1.76).
Gross profit rose 2.2% Y/Y to $821 million, and the margin expanded 280 basis points to 29.6%.
Loss from operations for the quarter was $(347) million versus a loss of $(310) million last year.
The company held over $1 billion in cash and equivalents as of March 31, 2023. Net cash used in operating activities for the quarter was $(147) million, and non-GAAP free cash flow was $(234) million.
Niraj Shah CEO, co-founder and co-chairman, said, "This was a strong quarter for Wayfair, and we are pleased to be seeing consistent market share gains and a significant improvement in cost structure versus last quarter that gets us to nearly Adjusted EBITDA breakeven in Q1. Most exciting is that we expect to have positive Adjusted EBITDA in the second quarter."
Price Action: W shares are trading higher by 16% at $36.27 on the last check Thursday.

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Why Wayfair Shares Are Jumping Today

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