11 million orders delivered! Wayfair's revenue in Q4 is $3.1 billion!

Wayfair reported revenue of $3.1 billion for the fourth quarter ended December 2022, down 4.6% from the same period last year but surpassing the Zacks Consensus Estimate of $3.06 billion by +1.40%. EPS was -$1.71, compared to -$0.92 in the same period last year.

Here's how Wayfair performed in the just-reported quarter, based on the metrics most widely monitored and predicted by Wall Street analysts:

• Delivered orders: 11.0 million, vs. the average estimate of 966.05 million from four analysts, above expectations.

• Average order value: $283, compared with the average estimate of $307.33 from four analysts, below expectations.

• Active customers: 22 million, compared to the average estimate of 23,586,330 by three analysts, below expectations.

• International revenue: $415 million, down 19.7% from the same period last year. The average estimate of four analysts was $428.7 million, which was lower than expected.

• U.S. market revenue: $2.69 billion, down 1.8% year-on-year, while the average estimate of four analysts was $2.55 billion, which was higher than expected.

Wayfair has embarked on a series of cost-cutting moves involving layoffs and other areas, but Jefferies analyst Jonathan Matuszewski reported that advertising spending as a percentage of sales hit its highest level since early 2016 last quarter as the company needed to increase paid ad spending to drive demand. Ad spending accounted for 13.1% of net revenue in the fourth quarter.

It is learned that after the financial report was released on February 23, Wayfair's stock price fell 29% in the afternoon session, setting a record for the largest single-day percentage drop on record.

Editor ✎Estella/

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