Why Wayfair Shares Are Rising Today

Wayfair Inc. W shares are trading higher in the morning session on Thursday.

The company reported a fourth-quarter adjusted loss per share of $(0.11), narrower than the Wall Street view of $(0.16) loss.

Wayfair reported fourth-quarter revenue of $3.114 billion, up 0.4% year over year. Revenue marginally surpassed the analyst consensus of $3.106 billion.

U.S. net revenue of $2.7 billion increased 0.9% year over year, while international net revenue of $404 million decreased 2.7% year over year.

Wayfair said active customers totaled 22.4 million as of December 31, 2023, an increase of 1.4% year over year.

Orders delivered in the fourth quarter were 11.3 million, an increase of 2.7% year over year. Average order value was $276 in the fourth quarter, compared to $283 in the year-ago period.

The company exited the fourth quarter with cash and equivalents worth $1.4 billion. Long-term debt as of quarter end totaled $3.092 billion.

“Even in a difficult macro environment, we generated a 3% Adjusted EBITDA Margin and had our third consecutive quarter of positive Adjusted EBITDA and Free Cash Flow,” said Niraj Shah, CEO, co-founder and co-chairman, Wayfair. 

“In fact, on a revenue base that largely mirrored 2022, our Free Cash Flow in 2023 improved by more than one billion dollars,” Shah added.

Price Action: W shares are trading higher by 8.17% to $52.77 on the last check Thursday.