Wayfair Aims to Cut Hundreds of Millions in Expenses as Losses Grow
On Nov. 3, home goods e-commerce company Wayfair (NYSE: W) reported financial results for the third quarter of 2022, which included a whopping $431 million in negative cash flow from operations. However, management doesn't want investors to worry, because it says Wayfair has already sourced $500 million in annualized savings with plans to soon find hundreds of millions more.
While Wayfair has enjoyed spectacular growth, it currently has a cash flow problem. Here's what investors need to know.
Let's couch a complex conversation in something simple to understand: revenue growth. Wayfair has grown its top line an impressive amount. Trailing-12-month revenue is up over 160% in the past five years, as you can see below. It seems consumers really like what this retail e-commerce company has to offer -- that's good.
Source Fool.com
