BOSTON — Wayfair’s third quarter net loss more than tripled to $60.9 million, but the home furnishings e-commerce giant beat analysts’ expectations as sales, average ticket and repeat business continued a march upward.
The $60.9 million loss, or a loss of 72 cents per share, in the period ending Sept. 30, compared a $15.5 million loss, or 18 cents per share loss, for the same period a year ago. The net loss adjusted for equity-based compensation, related taxes and non-recurring items was 54 cents per share vs. a 13 cents-per-share loss in the third quarter a year ago.
The net loss for the quarter approached the $61.9 million net loss Wayfair posted through three quarters last year.
Total net revenues, meanwhile, jumped 45% to $861.5 million from $594 million last year. Direct revenue through its five branded websites jumped 52.7% to $287.4 million.
Wayfair said it saw a 60.4% increase in the number of active customers on its website. Repeat customers placed 56.9% of total orders, up from 55.2% in the third quarter of 2015. The average order value increased to $244 from $235, and 40.3% of orders were placed via mobile devices, up from 35.1% a year ago.
Wayfair’s stock price was down more than 17% in early trading today to about $27.75. At midday, the stock had rebounded from the low and was off about 8% from Monday’s close.
In a release, Wayfair CEO, Co-founder and Co-chairman Niraj Shah noted the company continues “to gain significant market share.”
“With a core focus on enhancing the retail experience for our customers through technology, innovation, and inspiring merchandising, we are rapidly redefining the way people shop for their homes,” he said.
He pointed to technologies the company has deployed, including augmented and virtual reality and a new wedding registry experience that “make our e-commerce experience the preferred way to shop for furniture, décor, home improvement products, seasonal décor and more.
“At the same time, we are making tremendous strides to further optimize our logistics network and merchandising efforts in ways that directly and uniquely benefit our customer.”
Shah said Wayfair is entering the holiday season with its strongest offering ever “and remain very enthusiastic about our long term growth and profit potential.”
Through the first nine months of the year, Wayfair’s net loss more than doubled to $150.4 million, or a $1.77 loss per share, from $61.9 million, or a loss of 74 cents per share. Total revenue jumped 58.7% to $2.40 billion from $1.51 billion through the first nine months last year.
In the third quarter, total operating expenses increased to $263.3 million from $160 million last year as advertising, merchandising, marketing and sales expenses and operations, technology and general and administrative expenses increased significantly. Through nine months, total operating expenses increased to $721.7 million from $430.4 million.