Slide 1: Investor Presentation 2024
Investor Presentation 2024 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 p
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 >22 Million >20 Thousand >11 Thousand ~2 Thousand Active Customers Suppliers Employees Technologists Strong brand Purpose-built Co-founders recognition Fragmented Proprietary Focused on technology lead the in North and largely
Slide 4: Overview
1. Our Market 2. Who We Are 3. Why Suppliers Choose Wayfair Overview Overview 4. Why Customers Choose Wayfair 5. Financials 6. Appendix 4
Slide 5: 1. Our Market
1. OUR MARKET 5
Slide 6: Shopping for the Home Is Different
Shopping for the OUR MARKET Home Is Different Home shopping is browse-based, not search-based 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 Is Expected to Exceed $1T by 2030
OUR MARKET The Home Category Is Expected to Exceed $1T by Wayfair has a Meaningful 2030 Across North America & Opportunity for Share of Western Europe With a Wallet Expansion 2030 TAM Considerable Step Up in Among Existing >$1T Online Penetration Customers 2024 TAM ~$800B >50% >$3K Total Annual ~25%
Slide 8: 2. Who We Are
2. WHO WE ARE 8
Slide 9: We are an E-Commerce Platform Exclusively Focused on the Home
WHO WE ARE We are an E-Commerce Platform Exclusively Focused on the Home Supplier Customer Services Service Suppliers: Customers: >20 Thousand Technology & >22M Active Wayfair partners with Infrastructure Wayfair offers its our suppliers via a 3P customers a 1P model to drive experience that Shoppin
Slide 10: Our Portfolio of Brands Addresses Specific Customers' Styles & Segments
WHO WE ARE Our Portfolio of Brands Addresses Specific Customers’ Styles & Segments Est. 2006 Est. 2017 Luxury All of modern, made simple. The destination for luxury home. ($175K+ Omni-channel household income) Est. 2014 Classic style for joyful living. Mass ($60K – $175K household income) Est. 2011 T
Slide 11: We Serve a Massive Customer Base that Is Growing Increasingly Loyal
WHO WE ARE We Serve a Massive Customer Base that Is Growing Increasingly Loyal ~50% CAGR of our Customer File Since 2012 >90M Customer File 2012 New Orders / New Customers 2023 ~50% of Wayfair.com shoppers in 2023 have placed 4 or more lifetime orders 11
Slide 12: Our Supplier Universe Is Broad, Highly Fragmented and Largely Unbranded
WHO WE ARE Our Supplier Universe Is Broad, Highly Fragmented and Largely Unbranded >20K suppliers >12K >7K 2015 2019 2023 12
Slide 13: 3. Why Suppliers Choose Wayfair
3. WHY SUPPLIERS CHOOSE WAYFAIR 13
Slide 14: Customer Reach
WHY SUPPLIERS CHOOSE WAYFAIR Customer Reach Merchandising Supply Chain Wayfair has enormous reach across our customer base, driving nearly 140 billion impressions and 3 billion site/app visits over 2023 >80% aided brand awareness in North America1 1 14 Internal survey work as of Q4 2023
Slide 15: Merchandising
WHY SUPPLIERS CHOOSE WAYFAIR Customer Reach Merchandising Supply Chain We curate unbranded supplier products into our >100 house brands, enabling our customers to easily discover and purchase items they love 15 As of Q4 2023
Slide 16: Supply Chain
WHY SUPPLIERS CHOOSE WAYFAIR Customer Reach Merchandising Supply Chain Our end-to-end proprietary logistics network combined with our tech-enabled 3P integration enable us to maximize cost-perfect orders at scale Wayfair Proprietary Offerings CastleGate Forwarding (CGF) Wayfair Fulfillment (CastleGat
Slide 17: 4. Why Customers Choose Wayfair
4. WHY CUSTOMERS CHOOSE WAYFAIR 17
Slide 18: Shopping Experience
WHY CUSTOMERS CHOOSE WAYFAIR Shopping Experience Delivery Service Dynamic shopping experience to drive inspiration and discovery across our catalog of more than 30 million products 18 As of Q4 2023
Slide 19: Delivery
WHY CUSTOMERS CHOOSE WAYFAIR Shopping Experience Delivery Service Consistent and reliable delivery with improving speed as we drive optimization across our supply chain CastleGate for Small Parcel Example CastleGate End customer Wayfair-dedicated Common Carrier warehouse in New Jersey in New York tr
Slide 20: Customer Service
WHY CUSTOMERS CHOOSE WAYFAIR Shopping Experience Delivery Service Our nearly three thousand person dedicated customer service team brings deep expertise to ensure every customer has an exceptional experience “[My Wayfair Customer Service Consultant] was quite possibly the most pleasant, helpful and
Slide 21: Unique focus across the entire customer journey, powered by technology
We bring a unique level of focus across the entire customer journey, powered by our technology Technology See Investor Day 2023 Presentation for Deep Dive in Each Vertical 21
Slide 22: 5. Financials
5. FINANCIALS 22
Slide 23: Building Scale
FINANCIALS Building Scale Now one of the largest competitors in the home category with a 28% Net Revenue CAGR since IPO U.S. Net Revenue $14.1B $13.7B International Net Revenue $12.2B $12.0B $9.1B $6.8B $4.7B $3.4B $2.2B 2015 2016 2017 2018 2019 2020 2021 2022 2023 23
Slide 24: Driving Loyalty
FINANCIALS Driving Loyalty Cultivating a customer base that makes Wayfair a part of their shopping habits, with 80% of orders coming from repeat customers in 2023 New Orders 61M Repeat Orders 52M 40M 41M 38M 28M 19M 14M 9M 2015 2016 2017 2018 2019 2020 2021 2022 2023 24
Slide 25: Unit Economics
FINANCIALS Unit Economics Improving profitability as we structurally expand gross margins through logistics, supplier services, wholesale economics and merchandising mix Gross Profit Gross Margin 30.6% 29.1% 28.4% 28.0% 24.0% 23.9% 23.7% 23.5% 23.4% $0.5B $0.8B $1.1B $1.6B $2.1B $4.1B $3.9B $3.4B $3.7
Slide 26: Fixed Cost Discipline
FINANCIALS Fixed Cost Discipline Demonstrating consistent cost discipline to achieve SOTG&A leverage despite challenging macro environment, with significant flow through as home goods demand normalizes SOTG&A (excl. SBC, incl. D&A) 567M 543M 525M 508M 484M 473M Jan’24 Workforce 459M 447M Realignment P
Slide 27: Path forward - where we are today
FINANCIALS Path forward - where we are today We are building momentum towards our profitability goals Step 1 Step 2 Step 3 Breakeven Mid-Single Digit >10% Adjusted Adjusted Adjusted EBITDA EBITDA Margin1 & EBITDA1 Margin1 & Positive FCF1 Sustained Strong FCF1 FY’23 Adjusted EBITDA New FY Run-Rate Fol
Slide 28: How do we get to 10%+ Adjusted EBITDA margins?
Step 3 How do we get to 10%+ Adjusted EBITDA1 margins? SOTG&A 2-4% What does the Advertising path look like? Other 1-2% Logistics 1-2% Across our range Supplier Advertising 1-2% of growth 2-3% scenarios, we anticipate Adjusted EBITDA margin1 expansion annually on the Mid Single Digit Adjusted Gross
Slide 29: Where does this take us on Free Cash Flow?
Step 3 Where does this take us on Free Cash Flow1? Working Capital Capex 1-2% (2-4%) 2-4% 10%+ Adjusted EBITDA Operating Cash Free Cash Margin1 Flow Margin Flow Margin1 1 29 See Appendix at the end of this presentation for definitions and uses of Non-GAAP measures and reconciliations to the nearest
Slide 30: What We Are Working On For The Future
We Have Never Been More Excited About What We Are Working On For The Future Physical Wayfair Supplier Specialty & Emerging Retail Professional Services Luxury Brands Categories 30 Physical retail images are concept renderings and may differ from final construction
Slide 31: Growth Algorithm
Annual category growth: Low single digit % Online penetration expansion per year: Low single digit % Growth Wayfair incremental share capture: Mid teens to high 20% Algorithm Key drivers of share capture: ➔ Continuously Improving Core Recipe ➔ Category Expansion ➔ Specialty and Luxury Brand Growth ➔
Slide 32: 6. Appendix
6. APPENDIX 32
Slide 33: Non-GAAP Financial Measures
To supplement our consolidated financial statements presented in accordance with generally accepted accounting principles (“GAAP”), this presentation contains certain non-GAAP financial measures, including Adjusted EBITDA, Adjusted EBITDA Margin Free Cash Flow and Free Cash Flow Margin. We use these n
Slide 34: Financial Reconciliation
APPENDIX Financial Reconciliation 34
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