Slide 1: Investor Presentation Q4 2020
Investor Presentation Q4 2020 WAYFAIR INVESTOR PRESENTATION | 2020 - Q4 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, business strat
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. >31 Million >16,000 >16,000 >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 Americ
Slide 4: Overview
OVERVIEW 1. Our Market 2. Who We Are 3. How We Win 4. Financial Results 5. Appendix 4
Slide 5: 1. Our Market
1. OUR MARKET WAYFAIR INVESTOR PRESENTATION | 2020 - Q4 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 Across North America and Western Europe
OUR MARKET 2030 TAM The Home Category Will $1.2T Exceed $1T by 2030 Across North America and Western Europe 2020 TAM $840B Wayfair 2020 $14B WAYFAIR INVESTOR PRESENTATION | 2020 - Q4 Source: Euromonitor (2020 Report), Wayfair internal estimates 7
Slide 8: Wayfair is on a 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 U.S. Home Category Wayfair Share of Wayfair Revenue B2C Online Incremental U.S. B2C Potential by 2030 Penetration Online Dollars Each Year 50%+ 21% 14% 13% 20% to 40% 8x+ 2020 Net
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 >16,000 Technology & >31M 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 & the Driver of Our Business
WHO WE ARE Household brand status in 3 of our 4 markets, as measured by aided brand awareness1: Is ● 85% in the U.S. ● 84% in Canada Our Marquee Brand & the ● 77% in the U.K. ● Germany tracking same trajectory as Driver of Our Business other markets 2 years into media launch In the U.S. and Canada,
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 The best of modern, priced for real life. The widest-ever selection of ($175K+ luxury home furnishings. household income) Est. 2014 Classic home. Comfortable cost. Mass ($60K – $175K household
Slide 13: Our 31 Million Active Customers Are Highly Engaged and Dedicated to Our Platform
WHO WE ARE Our 31 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 58% Our Average Customer 30% ● Visits the site 9 times and browses across 29 products as part of each purchase
Slide 14: Our Supplier Universe Is Broad, Highly Fragmented and Unbranded
WHO WE ARE "Now that we are participating in CastleGate Our Supplier Universe Is and making full use of their Broad, Highly Fragmented insights, we're really able to take full advantage of and Unbranded Wayfair's platform." Our supplier partners are highly diverse, so "During the pandemic, Wayfair i
Slide 15: 3. How We Win
3. HOW WE WIN 15
Slide 16: Our Thousands of Engineers Create Purpose-Built Technology That Powers Everything We Do
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 | 2020 - Q4 16
Slide 17: Our Dynamic Shopping Experience Supports Customers at Each Step of Their 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 Our Customers to Easily Discover Items They Love
HOW WE WIN Our Curated House Brands Enable Our Customers to 103 Easily Discover Items They Love From 22 Million Products House Brands 77% of U.S. Revenue Wayfair-Produced Imagery Millions of Reviews AI-Enhanced Curation Growing Exclusivity WAYFAIR INVESTOR PRESENTATION | 2020 - Q4 Data as of Q4 2020
Slide 19: Data-Driven Marketing Grows Our Customer Base, Drives Repeat, and Maximizes Lifetime Value
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 2020: ● ROI and payback targets finely tuned across all channels ● Proprietary, purpose-built 46 Billion 192 Billion 4 Billion
Slide 20: Proprietary End-to-End Logistics Network Enables Faster Delivery, Less Damage, Lower Costs
HOW WE WIN Proprietary End-to-End Logistics Network Enables Us to Drive Faster Delivery Speeds, Reduce Damage, and Lower Costs CastleGate WDN International Supply Chain (ISC) Wayfair Fulfillment (CastleGate) Wayfair Delivery Network (WDN) ● More than 40,000 TEUs1 carried in 2020 – ● 21% of U.S. smal
Slide 21: Our Top Priority Is Ensuring Every Customer Has an Exceptional Experience With Us
HOW WE WIN “Very good service advice and very nice and helpful staff. Extremely satisfied and definitely recommend Wayfair to neighbors, friends, and family. Thank you Our Top Priority Is for your expertise.” Ensuring Every Customer Has an Exceptional “My family always refers you to our family and f
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 Media WAYFAIR INVESTOR PRESENTATION | 2020 - Q4 Note: Fulfillment cente
Slide 23: 4. Financial Results
4. FINANCIAL RESULTS WAYFAIR INVESTOR PRESENTATION | 2020 - Q4 23
Slide 24: Key Financial Highlights
FINANCIAL RESULTS Key Financial Highlights Sustained Growth at Scale Loyal Customer Base Strong Unit Economics Profitability $14.1B 2020 Net Revenue 70% 29% $947M Repeat Orders as 2020 Gross Margin 2020 Adjusted EBITDA 48% % of total in 2020 6.7% of Net Revenue CAGR since 2014 IPO Significant Invent
Slide 25: We Are Driving Robust Growth at Scale
FINANCIAL RESULTS $14,145 We Are Driving Robust Growth at Scale $9,127 $6,779 U.S. Net Revenue ($M) $4,721 International Net Revenue ($M) $3,380 $2,250 240+ Niche Websites; Wayfair Brand Wayfair U.S. Wayfair Wayfair DE Platform Development Launched Brand Building Canada & U.K. Brand Building Brand B
Slide 26: We Are Building Customer Loyalty and Gaining Share of Wallet
FINANCIAL RESULTS We Are Building Customer Loyalty and Gaining Share of Wallet $453 2.0 61M 70% 31M $395 57% 8M 1.7 14M WAYFAIR INVESTOR PRESENTATION | 2020 - Q4 26
Slide 27: Our Multiple Long-Term Initiatives Support Continued Profit Growth
FINANCIAL RESULTS Our Multiple Long-Term Initiatives Support Continued Profit Growth Revised Pre-IPO Long-Term Targets Primary Drivers 2014 (IPO) 2020 View as % of Net Revenue Direction vs. Pre-IPO Targets Net Revenue Expense 100% 100% 100% - Improving wholesale economics Gross Margin 23.6% 29.1% 25
Slide 28: 5. Appendix
5. APPENDIX 28
Slide 29: Wayfair.com Revenue/Customer/Month
APPENDIX Wayfair.com Revenue/Customer/Month Wayfair.com Annual Cohort Performance (Includes all activated customers in each cohort) Note on Methodology: First data point in chart is 31–60 days after the customer’s initial purchase. WAYFAIR INVESTOR PRESENTATION | 2020 - Q4 Cohort numerator includes
Slide 30: Global Headcount Across Variable and Corporate Roles
APPENDIX Global Headcount Across Variable and Corporate Roles Headcount (Thousands) 1 1 WAYFAIR INVESTOR PRESENTATION | 2020 - Q4 1 These figures include interns and co-ops. 30
Slide 31: Reconciliation of Adjusted EBITDA and Free Cash Flow ($ in Millions)
APPENDIX Reconciliation of Adjusted EBITDA and Free Cash Flow ($ in Millions) 2019 2020 2019 2020 Net Income/(Loss) ($985) $185 Net Cash Provided by (Used in) Operating Activities ($197) $1,417 Depreciation and Amortization $192 $286 Purchase of Property and Equipment ($272) ($186) Equity-Based Comp
Slide 32: swaytair
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