Shares of Wayfair (NYSE:W) jumped more than 10% in premarket trading on Tuesday after the online furniture retailer reported third-quarter results that came in ahead of Wall Street forecasts.
The company posted earnings per share of $0.70, comfortably beating the consensus estimate of $0.44. Revenue came in at $3.1 billion, slightly above expectations of $3.01 billion.
U.S. net revenue climbed 8.6% year over year to $2.7 billion, an increase of $216 million. International net revenue rose 4.6% to $389 million, reflecting constant-currency growth of 3.5%.
Wayfair also reported non-GAAP adjusted EBITDA of $208 million for the quarter, underscoring improved operational efficiency and demand momentum.
“The third quarter was a great success — share gain further accelerated, with revenue growing 9% year-over-year excluding Germany. We saw orders delivered grow by over 5% year-over-year in the quarter, including new orders now growing mid-single digits for two quarters in a row,” said Niraj Shah, CEO, co-founder and co-chairman of Wayfair.
“This came in tandem with more than 70% year-over-year growth in Adjusted EBITDA. Our 6.7% Adjusted EBITDA margin marks the highest level achieved in Wayfair’s history outside of the pandemic period.”
The strong quarterly performance highlights Wayfair’s continued market share gains and improving profitability as it leverages operational efficiencies and steady consumer demand.