Wayfair, the online home goods retailer, reported its financial results after the bell Wednesday for the first quarter of 2023.
The Boston-based company achieved considerable progress on its roadmap toward profitability, evidenced by the fact that its non-GAAP adjusted diluted loss per share was $1.13, which beat the market expectations of negative $1.69 per share.
The company's first-quarter net revenue was $2.8 billion, which is a decrease of 7.3% year-over-year, but the number of active customers increased by 14.6% to 21.7 million.
Wayfair's gross profit was $821 million, or 29.6% of total net revenue, and it had a net loss of $355 million. However, the company expects to achieve positive adjusted EBITDA in the second quarter.
"We have always known, and now we are clearly demonstrating that the Wayfair model is inherently profitable, and that there is considerable opportunity in front of us to rapidly drive further margin expansion,” CEO Niraj Shah in a statement.
Investors reacted positively as the company's stock rose more than 15% to $36.21.
Contact Andrew Kessel at andrew.kessel@proactiveinvestors.com
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