Wayfair Inc. · NYSE:W
Wayfair — Investor Presentation (February 2023)
30 slides from Wayfair's investor presentation, Feb 23, 2023
Slide 1: Investor Presentation 2023
Investor Presentation 2023 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 >14 Thousand >2 Thousand Active Customers Suppliers Employees Engineers Strong brand Purpose-built Co-founders recognition Fragmented Proprietary Focused on technology lead the in North and largely end
Slide 4: Overview
1. Our Market 2. Who We Are 3. Why Suppliers Choose Wayfair 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 2023 TAM >$800B >50% >$3K Total Annual High
Slide 8: 2. Who We Are
a) All| My 2. WHO WE ARE
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. An undiscovered world of luxury design. ($175K+ Omni-channel household income) Est. 2014 A fresh take on the classics. Mass ($60K – $175K household income) Est. 20
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 Over the Last Ten Years >80M Customer File 2012 New Orders / New Customers 2022 ~50% of Wayfair.com shoppers in 2022 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 2022 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 Logistics Wayfair has enormous reach across our customer base, driving nearly 140 billion impressions and 3 billion site/app visits over 2022 >80% aided brand awareness in North America1 1 14 Internal survey work as of Q4 2022
Slide 15: Merchandising
WHY SUPPLIERS CHOOSE WAYFAIR Customer Reach Merchandising Logistics 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 2022
Slide 16: Logistics
WHY SUPPLIERS CHOOSE WAYFAIR Customer Reach Merchandising Logistics Growing adoption across our logistics portfolio, with 22% US CastleGate penetration for the full year 2022 CastleGate Forwarding (CGF) Wayfair Fulfillment (CastleGate) Wayfair Delivery Network (WDN) Ocean transport service bringing F
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 40 million products 18 As of Q4 2022
Slide 19: Delivery
WHY CUSTOMERS CHOOSE WAYFAIR Shopping Experience Delivery Service Consistent and reliable delivery with improving speed as more product is fulfilled through CastleGate CastleGate for Small Parcel Example CastleGate End customer Wayfair-dedicated Common Carrier warehouse in New Jersey in New York tran
Slide 20: Customer Service
WHY CUSTOMERS CHOOSE WAYFAIR Shopping Experience Delivery Service Our nearly four 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 p
Slide 21: 5. Financials
5. FINANCIALS 21
Slide 22: Building Scale
FINANCIALS Building Scale Now one of the largest competitors in the home category with a 32% Net Revenue CAGR since IPO U.S. Net Revenue $14.1B $13.7B International Net Revenue $12.2B $9.1B $6.8B $4.7B $3.4B $2.2B 2015 2016 2017 2018 2019 2020 2021 2022 22
Slide 23: Driving Loyalty
FINANCIALS Driving Loyalty Cultivating a customer base that makes Wayfair a part of their shopping habits, with 78% of orders coming from repeat customers in 2022 New Orders 61M Repeat Orders 52M 38M 40M 28M 19M 14M 9M 2015 2016 2017 2018 2019 2020 2021 2022 23
Slide 24: Unit Economics
FINANCIALS Unit Economics Improving profitability as we structurally expand gross margins through logistics, supplier services, wholesale economics and merchandising mix Gross Profit 29.1% 28.4% Gross Margin 28.0% 24.0% 23.9% 23.7% 23.4% 23.5% $0.5B $0.8B $1.1B $1.6B $2.1B $4.1B $3.9B $3.4B 2015 2016
Slide 25: Path Forward
FINANCIALS Path Forward We are building momentum towards our profitability goals Breakeven Mid-Single Digit >10% Adjusted EBITDA Adjusted Adjusted EBITDA Margin & Sustained EBITDA1 Margin & Positive FCF1 Strong FCF Driving to achieve during Intended future lower Long term opportunity 2023 bound Execu
Slide 26: We Have Never Been More Excited About What We Are Working On For The Future
We Have Never Been More Excited About What We Are Working On For The Future Physical Wayfair Supplier Specialty & Emerging Retail Professional Services Luxury Brands Categories 26 Physical retail images are concept renderings and may differ from final construction
Slide 27: 6. Appendix
6. APPENDIX 27
Slide 28: Financial Reconciliation
APPENDIX Financial Reconciliation Q2 2020 Q3 2020 Net Revenue ($M) $4,305 $3,840 Net income $274 $173 Net income Margin 6.4% 4.5% Depreciation and amortization 69 73 Equity-based compensation and related taxes 71 77 Interest expense, net 29 36 Other (income) expense , net (3) 14 Provision (Benefit) f
Slide 29: 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, and Free Cash Flow. We use these non-GAAP financial meas
Slide 30: eswaytair
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