Source: Company reports

Boston-based Wayfair reported 4Q15 revenue of $739.8 million, up a strong 81.1% year over year and surpassing the consensus estimate of $679.1 million. Direct retail revenue, consisting of online sales generated through Wayfair’s namesake sites and its four other online brands, increased 97.8% year over year to $685.6 million—beating the consensus of $625.1 million and projected estimate of $575–$610 million (66%–75%). Direct retail comprised 93% of the company’s revenue. Adjusted EBITDA was $2.8 million, exceeding the consensus estimate of a $2.1 million loss. The average-order value increased 8.8% year over year to $222, with 3.1 million orders (up by 75.1%) delivered in the quarter, slightly above the consensus estimate of $217 and 3.0 million, respectively. At quarter’s end, Wayfair had 5.4 million active customers, up 66.6% year over year. Wayfair sales also benefited from offering free shipping on its extensive online catalog. Repeat customers placed 54.3% of total orders, compared with 50.3% in the year-ago quarter, amounting to 1.7 million total orders in the fourth quarter, an increase of 96.1% year over year. Orders per customers, calculated as last twelve months orders divided by active customers, increased to 1.71 for the fourth quarter, up from 1.63 a year ago. In the fourth quarter, 36.4% of total orders delivered, or 1.1 million, were placed through mobile devices, up from 29.7% in the year-ago quarter.

2015 RESULTS

For 2015, Wayfair reported that total sales increased by 85.2% year over year to $2.3 billion. Direct retail revenue increased 85.2% to $2.0 billion. There were 9.2 million orders delivered in the year, an increase of 75.1% compared with 2014.

GUIDANCE

Wayfair expects 1Q16 revenue to increase by 56%–65% year over year, to $660-$700 million, versus the consensus estimate of $628.8 million. The company expects direct retail sales of $630–$665 million, up by 71%–80%, above the consensus of $584.6 million. The company expects to begin expanding internationally in Canada and Western Europe, which brings additional potential for its top-line growth.