Wayfair misses Q3 revenue estimates; Shares fall 8%

Wayfair (NYSE:) reported mixed third-quarter results, sending its shares nearly 8% lower in early New York trading on Wednesday.

In the third quarter, the company achieved an adjusted EBITDA of $100 million, a significant improvement compared to the $124 million loss in the same period the previous year. This was also better than the consensus of $57.6 million.

Wayfair also reported an adjusted loss per share of 13 cents, a considerable improvement from the $2.11 loss per share in the prior year’s third quarter, and easily above the expected loss per share of 44 cents.

However, the company’s net revenue for the quarter reached $2.94 billion, marking a 3.7% increase year-over-year, missing the average analyst estimate of $2.98 billion.

In the United States, Wayfair generated revenue of $2.57 billion, reflecting a 5.4% increase YoY. Internationally, revenue was $372 million, experiencing a 7% decrease YoY, but still slightly above the estimated $369.1 million.

“We executed further in the third quarter to produce consistent profitability – with Adjusted EBITDA now positive on a trailing 12 month basis – while also driving demonstrable market share growth, as evidenced by our gains on customers and orders. Even with a turbulent macro, we remain committed to our profitability goals in good times and bad,” said Niraj Shah CEO, co-founder and co-chairman, Wayfair.

Wayfair’s gross margin was 31.1%, showing improvement from the 29% margin YoY, and it topped the estimated 30.2%. The number of orders delivered reached 10 million, indicating an 11% increase from the year-ago period and surpassing the estimated 9.55 million.