Company News

Four Key Takeaways from Wayfair’s Investor Day

On August 10th, Wayfair held its first-ever Investor Day where investors and analysts were invited to hear directly from Wayfair’s extended leadership teams about our business, strategy, and vision for the future. Together, we took a journey through our organization and core business areas from the perspective of a customers’ journey with Wayfair, from marketing to merchandising and pricing, supply chain, sales & service, and technology. This deeper insight and detail about the category-defining capabilities and differentiators we wield at each stage of the customer journey highlighted how Wayfair is built for long-term success in the Home category.

Below, check out the four key takeaways from Investor Day and learn how Wayfair plans to become the leader in Home.

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Our core recipe is the strongest it’s ever been, and we are consistently gaining share as a result.

Despite a challenging macroeconomic environment where others in this market may be struggling, Wayfair continues to outperform in this context. Our market share growth is continuing its positive trend, and it’s proof that our core recipe – offering our customers a vast, well-curated selection of products that are competitively priced and delivered quickly without incident – is resonating.

We have category-defining capabilities at each stage of the customer journey, powered by our proprietary technology platform and deep supplier relationships.

We’ve spent more than 20 years building and refining category-defining capabilities across each stage of the customer’s journey with us. From our proprietary ad and attribution tech to our sophisticated pricing algorithms, custom built end-to-end supply chain network, and the powerful technology that enables our entire platform, Wayfair is built to provide a best-in-class shopping experience for the customers we serve today and tomorrow.

We believe that at each step of the customer’s journey, we’ve created category-defining capabilities that enhance that customer experience – and that’s underpinned by our more than 20 years of experience and data, our proprietary technologies, and our deep and enduring supplier relationships.
Kate Gulliver, Chief Financial Officer

We have major initiatives underway that will unlock significant growth opportunities.

The total addressable market for the Home category is currently around $800 billion, and we estimate that by 2030 it will be worth over $1 trillion. That’s a massive opportunity for our business, and we’re investing heavily in growth drivers across our business that will allow us to unlock more and more of that opportunity. We split these growth drivers into four vectors:

  • Expanding into new customer segments through different brands (luxury, speciality and mass market)
  • Expanding into new geographies (U.S. and International)
  • Serving both consumers (B2C) and professionals (B2B via Wayfair Professional)
  • Investing in physical retail / brick-and-mortar (online and offline offerings)
When you look at all of these things, you can start to see how our business – and our profits – can grow dramatically as we invest in them.
Niraj Shah, CEO and Co-founder

We’ve made strong progress on our profitability goals, and our business model supports meaningful Adjusted EBITDA profitability and Free Cash Flow.

In 2022, we laid out a plan to strengthen our business that included a path to sustainable and growing profitability with several key milestones, including lowering our costs, focusing on our core recipe, and earning more customer and supplier loyalty. We’ve been executing on that plan ever since, returning to momentum in our top line and making strong progress – all while investing in growth drivers for our future.

Earlier this month, we announced that we’d passed one of our key milestones: hitting positive adjusted EBITDA and positive free cash flow, along with positive year-over-year order growth and sequentially higher active customer count. It’s strong progress, and we laid out how we’re on track to grow beyond today’s level of profitability to >10% adjusted EBITDA margins and strong free cash flow, driven by initiatives like supplier advertising, cost savings and efficiency improvements in logistics, and improving efficiencies in advertising while continuing to build the Wayfair brand.

Head over to our Investor Relations site where you can watch the full Investor Day recording and access the accompanying presentation deck.