Wayfair Inc. (W) saw its loss widen to $43.96 million, or $0.51 a share for the quarter ended Dec. 31, 2016. In the previous year period, the company reported a loss of $15.50 million, or $0.18 a share. On the other hand, adjusted net loss for the quarter widened to $29.22 million, or $0.34 a share from a loss of $5.70 million or $0.07 a share, a year ago. Revenue during the quarter surged 33.09 percent to $984.56 million from $739.79 million in the previous year period. Gross margin for the quarter expanded 48 basis points over the previous year period to 24.23 percent. Operating margin for the quarter stood at negative 4.44 percent as compared to a negative 2.16 percent for the previous year period.
Operating loss for the quarter was $43.76 million, compared with an operating loss of $15.99 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at negative $12.03 million compared with $2.83 million in the prior year period. At the same time, adjusted EBITDA margin stood at negative 1.22 percent for the quarter compared to 0.38 percent in the last year period.
"We are extremely pleased to report yet another year of exceptional growth with total net revenue up $1.1 billion to $3.4 billion in 2016," said Niraj Shah, chief executive officer, co-founder and co-chairman, Wayfair. "As we continue to rapidly gain market share in the approximately $600 billion home category across North America and Europe, we are reaping the gains from the large, long-term investments we have been making over the past few years. Our largest investment is in our international business in Canada, the United Kingdom and Germany, where we are starting to see real traction and increased brand awareness. In the U.S., we are also investing in our proprietary logistics network, including CastleGate and the Wayfair Delivery Network, as well as in newer categories, such as home improvement and housewares. Even with this substantial ongoing investment in our U.S. business, the U.S. business continues to deliver strong results. In 2017, our team will continue to innovate at a rapid speed to deliver on a number of strategic initiatives that will solidly reinforce Wayfair’s leadership position as the best place to shop for home."
Operating cash flow drops significantlyWayfair Inc. has generated cash of $62.81 million from operating activities during the year, down 53.51 percent or $72.31 million, when compared with the last year. The company has spent $95.88 million cash to meet investing activities during the year as against cash outgo of $137.73 million in the last year.
The company has spent $20.88 million cash to carry out financing activities during the year as against cash outgo of $18.62 million in the last year period.
Cash and cash equivalents stood at $279.84 million as on Dec. 31, 2016, down 16.26 percent or $54.34 million from $334.18 million on Dec. 31, 2015.
Working capital turns negative
Working capital of Wayfair Inc. has turned negative to $80.13 million on Dec. 31, 2016 from positive $95.30 million on Dec. 31, 2015. Current ratio was at 0.86 as on Dec. 31, 2016, down from 1.24 on Dec. 31, 2015.
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