Revenue during the quarter surged 45.04 percent to $861.52 million from $593.97 million in the previous year period. Gross margin for the quarter contracted 40 basis points over the previous year period to 23.41 percent. Operating margin for the quarter stood at negative 7.15 percent as compared to a negative 3.14 percent for the previous year period.

Operating loss for the quarter was $61.62 million, compared with an operating loss of $18.64 million in the previous year period.

However, the adjusted EBITDA for the quarter stood at negative $30.85 million compared to negative $1.44 million in the prior year second quarter. At the same time, adjusted EBITDA margin stood at negative 3.58 percent for the quarter compared to negative 0.24 percent in the last year period.

"We are very pleased to report yet another strong quarter of rapid growth as we continue to gain significant market share. Overall, our business grew Q3 net revenue by 45 percent year over year and our Direct Retail business was up 53 percent year over year," said Niraj Shah, Chief executive officer, co-founder and co-chairman, Wayfair. "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. From augmented and virtual reality solutions to a brand new wedding registry experience, we are applying cutting-edge technologies to traditional retail challenges to 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. We are excited to enter the holiday season with our strongest offering ever - and remain very enthusiastic about our long term growth and profit potential."

The company has spent $97.18 million cash to meet investing activities during the nine month period as against cash outgo of $109.23 million in the last year period.

The company has spent $18.26 million cash to carry out financing activities during the nine month period as against cash outgo of $12.52 million in the last year period.

Cash and cash equivalents stood at $334.18 million as on Sep. 30, 2016, up 19.91 percent or $55.49 million from $278.69 million on Sep. 30, 2015.

Working capital declines
Wayfair Inc. has witnessed a decline in the working capital over the last year. It stood at $95.30 million as at Sep. 30, 2016, down 20.17 percent or $24.07 million from $119.37 million on Sep. 30, 2015. Current ratio was at 1.24 as on Sep. 30, 2016, down from 1.38 on Sep. 30, 2015.

Cash conversion cycle (CCC) has decreased to 27 days for the quarter from 29 days for the last year period. Days sales outstanding were almost stable at 1 days for the quarter, when compared with the last year period.

Days inventory outstanding has decreased to 1 days for the quarter compared with 4 days for the previous year period. At the same time, days payable outstanding went down to 29 days for the quarter from 35 for the same period last year.