Executive Summary

• Online furniture-retailer Wayfair reported 4Q15 revenue of $739.8 million, up 81.0% year over year, both exceeding the consensus estimate of $679.1 million and company guidance of $625–$665 million.
• The company reported adjusted EPS for the quarter of $(0.07), up 61.1% year over year and beating the consensus estimate of $(0.14). The company posted positive- adjusted EBITDA for the first time. Growth is being driven by strong customer retention, a growing customer base, and higher-than-average order values.
• Wayfair expects 1Q16 revenue to increase by 56%−65% year over year, to $660-$700 million, versus the consensus estimate of $628.8 million. The company is expected to begin investing internationally in Canada and Western Europe.