Wayfair Inc. · NYSE:W
Wayfair — Q2 2022 Earnings Presentation
31 slides from Wayfair's earnings presentation, August 2022
Slide 1: Investor Presentation Q2 2022
Investor Presentation Q2 2022 WAYFAIR INVESTOR PRESENTATION | 2022 - Q2 1
Slide 2: Safe Harbor
This presentation contains forward-looking statements within the meaning of federal and state securities laws. All statements other than statements of historical fact contained in this presentation—including statements regarding our future results of operations and financial position, including our
Slide 3: Wayfair is a platform focused exclusively on the $800B+ home goods market
Wayfair is a platform focused exclusively on the $800B+ home goods market. 24 Million >23,000 >18,000 >3,000 Active Customers Suppliers Employees Engineers Strong brand Purpose-built Co-founders Fragmented Proprietary recognition in technology Profitable lead the and largely end-to-end North America
Slide 4: Overview
OVERVIEW 1. Our Market 2. Who We Are 3. How We Win 4. Financial Results 5. Appendix
Slide 5: 1. Our Market
1. OUR MARKET WAYFAIR INVESTOR PRESENTATION | 2022 - Q2 5
Slide 6: Shopping for the Home Is Different
OUR MARKET Shopping for Home shopping is browse-based, the Home not search-based Is Different Customers value individuality and have an emotional connection to their homes The Home category is largely unbranded and very fragmented Bulky and damage-prone products require tailored delivery and custome
Slide 7: The Home Category Will Exceed $1T by 2030
OUR MARKET 2030 TAM The Home Category Will $1.2T Exceed $1T by 2030 Across North America and Western Europe 2021 TAM $800B+ Wayfair 2021 $14B WAYFAIR INVESTOR PRESENTATION | 2022 - Q2 Source: Euromonitor (2021 Report), Wayfair internal estimates 7
Slide 8: Path to be significantly larger as e-commerce penetration rises
OUR MARKET Wayfair is on a path to be significantly larger as e-commerce penetration rises and we continue to gain share through an omni-channel strategy U.S. Home Category Wayfair Share of Wayfair Revenue Potential B2C Online Incremental U.S. B2C Over the Next Decade Penetration Online Dollars Each
Slide 9: 2. Who We Are
2. WHO WE ARE 9
Slide 10: An E-Commerce Platform Exclusively Focused on the Home
WHO WE ARE An E-Commerce Platform Exclusively Focused on the Home Supplier Customer Services Service Suppliers Customers >23,000 Technology & 24M Active Wayfair partners with our Infrastructure Wayfair offers its customers suppliers via a 3P model a 1P experience that to ensure marketplace enhances
Slide 11: Wayfair Is Our Marquee Brand & Main Driver of Our Business
WHO WE ARE Household brand status in 3 of our 4 markets, as measured by aided brand awareness1: Is ● 82% in the U.S. Our Marquee Brand & the ● ● 85% in Canada 77% in the U.K. Main Driver of Our Business ● Germany tracking same trajectory as other markets, though at earlier stage Category aided aware
Slide 12: Our Portfolio of Brands Addresses Specific Customer Styles & Segments
WHO WE ARE Our Portfolio of Brands Addresses Specific Customer Styles & Segments Est. 2006 Est. 2017 Luxury All of modern, made simple. An undiscovered world of luxury design. ($175K+ household income) Est. 2014 A fresh take on the classics. Mass ($60K – $175K household income) Est. 2011 Everything
Slide 13: Our 24 Million Active Customers Are Highly Engaged
WHO WE ARE Our 24 Million Active Our Loyal Customer Base Is Expanding Wayfair.com orders from customers with 3+ lifetime purchases Customers Are Highly Engaged and Dedicated to Our Platform 63% During 2021: 30% ● Customers visited Wayfair 10+ times and browsed across 30+ products on average as part
Slide 14: Our Supplier Universe Is Broad, Highly Fragmented and Unbranded
WHO WE ARE "Wayfair stood out in 2021 with CastleGate Forwarding, Our Supplier Universe Is which was a real difference Broad, Highly Fragmented maker for us during a period of tremendous and Unbranded capacity constraints." Our supplier partners are highly diverse, so Wayfair’s solutions and insight
Slide 15: 3. How We Win
3. HOW WE WIN 15
Slide 16: Our Thousands of Engineers Create Purpose-Built Technology
HOW WE WIN Our Thousands of Engineers Create Purpose-Built Technology That Powers Everything We Do Shopping Merchandising Marketing Operations Supplier Experience Services 3,000+ Engineers WAYFAIR INVESTOR PRESENTATION | 2022 - Q2 16
Slide 17: Our Dynamic Shopping Experience Supports Each Step of the Purchasing Journey
HOW WE WIN Our Dynamic Shopping Experience Supports Customers at Each Step of Their Purchasing Journey Inspiration & Discovery: Products Visualization: Confidence To Buy: Find the Right Product Faster - Customers “See” Before They Buy - Inspiring Spaces from In-depth Information Q&A. Specialized sal
Slide 18: Our Curated House Brands Enable Customers to Discover Items
HOW WE WIN Our Curated House Brands Enable Our Customers to 124 Easily Discover Items They Love From 33 Million Products House Brands 72% of U.S. Revenue Wayfair-Produced Imagery Millions of Reviews AI-Enhanced Curation Growing Exclusivity WAYFAIR INVESTOR PRESENTATION | 2022 - Q2 Data as of Q4 2021
Slide 19: Data-Driven Marketing Grows Our Customer Base
HOW WE WIN Data-Driven Marketing Grows Our ● Led by 200+ quantitative marketers, engineers, and data Customer Base, Drives Repeat, and scientists Maximizes Lifetime Value In 2021: ● ROI and payback targets finely tuned across all channels ● Proprietary, purpose-built ~41 Billion ~152 Billion ~4 Bill
Slide 20: Proprietary End-to-End Logistics Network
HOW WE WIN Proprietary End-to-End Logistics Network Enables Us to Drive Faster Delivery Speeds, Reduce Damage, and Lower Costs CastleGate WDN CastleGate Forwarding (CGF) Wayfair Fulfillment (CastleGate) Wayfair Delivery Network (WDN) ● More than 80,000 TEUs1 carried in 2021 – ● 21% of U.S. small-par
Slide 21: Our Top Priority Is Ensuring Every Customer Has an Exceptional Experience
HOW WE WIN “[My Wayfair Customer Service Consultant] was literally the most helpful and cheerful customer service rep I have ever talked with. You could tell she was happy to Our Top Priority Is help and cared about the problem.” Ensuring Every Customer Has an Exceptional “[My Wayfair Customer Servi
Slide 22: Value-Added Services Drive Supplier Success on the Platform
HOW WE WIN Value-Added Services Drive Supplier Success on the Platform Leveraging our scale Leveraging our technology for the benefit of our suppliers for the benefit of our suppliers End-to-End Logistics Merchandising & Imagery Advertising WAYFAIR INVESTOR PRESENTATION | 2022 - Q2 Note: Fulfillment
Slide 23: 4. Financial Results
4. FINANCIAL RESULTS WAYFAIR INVESTOR PRESENTATION | 2022 - Q2 23
Slide 24: Q2 2022 Key Financial Highlights
FINANCIAL RESULTS Q2 2022 Key Financial Highlights Meaningful Scale Compounding Growth Loyal Customer Base Considerable Order Volume $12.7B 35% 77% 43.5M LTM Net Revenue Net Revenue CAGR since Repeat Orders as LTM Orders Delivered 2014 IPO % of LTM Total Significant Strong Unit Economics Inventory-L
Slide 25: We Are Driving Robust Growth at Scale
FINANCIAL RESULTS We Are Driving $14.1 $13.7 Robust Growth at Scale $9.1 $6.8 U.S. Net Revenue ($B) International Net Revenue ($B) $4.7 $3.4 $2.3 240+ Niche Websites; Wayfair Brand Wayfair U.S. Wayfair Wayfair DE Platform Development Launched Brand Building Canada & U.K. Brand Building Brand Buildin
Slide 26: We Are Building Customer Loyalty and Gaining Share of Wallet
FINANCIAL RESULTS We Are Building Customer Loyalty and Gaining Share of Wallet $537 1.85 44M 24M 1.76 77% $422 11M 19M 61% WAYFAIR INVESTOR PRESENTATION | 2022 - Q2 26
Slide 27: Our Multiple Long-Term Initiatives Support Continued Profit Growth
FINANCIAL RESULTS Our Multiple Long-Term Initiatives Support Continued Profit Growth Revised Pre-IPO Long-Term Targets Primary Drivers 2014 (IPO) 2021 View as % of Net Revenue Direction vs. Pre-IPO Targets Net Revenue Expense 100% 100% 100% - Improving wholesale economics Gross Margin 23.6% 28.5% 25
Slide 28: 5. Appendix
5. APPENDIX 28
Slide 29: Global Headcount Across Variable and Corporate Roles
APPENDIX Global Headcount Across Variable and Corporate Roles Headcount (Thousands) 1 1 WAYFAIR INVESTOR PRESENTATION | 2022 - Q2 1 These figures include interns and co-ops. 29
Slide 30: Reconciliation of Adjusted EBITDA and Free Cash Flow
APPENDIX Reconciliation of Adjusted EBITDA and Free Cash Flow ($ in Millions) 2020 2021 Q2’21 Q2’22 2020 2021 Q2’21 Q2’22 Net Revenue $14,145 $13,708 $3,857 $3,284 Net cash flows from Operating Activities $1,417 $410 $275 ($115) Net (loss) income $185 ($131) $131 ($378) Purchase of property and equi
Slide 31: swaytair
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