The following is excerpted from the question-and-answer section of the transcript.
(Questions from industry analysts are provided in full, but answers are omitted - download the transcript to see the full question-and-answer session)
Question: Steven Paul Forbes - Guggenheim Securities, LLC, Research Division - Analyst
: Maybe just a quick follow-up on the international segment. I think someone mentioned in the prepared remarks, right, that the
strength was mainly a function of the delayed reopening cadence overseas. But anything to call out on a country-by-country basis
in terms of the maturation of the business and what it tells you about the opportunity ahead? Because I think in general, the strength
here was higher than expectations. And any sort of key metrics or data points we should think about for the back half strength just
Question: Steven Paul Forbes - Guggenheim Securities, LLC, Research Division - Analyst
: And maybe a follow-up, sort of a bigger picture, right, as we think about the KPIs, specifically active customers. You talked about
sequential change and, yes, I guess, the slight moderation in active customers in the second quarter. Is there anything that sort of
would prevent the business from seeing sequential improvement from here on out? Or is that the international cadence or some
other factor, right, still at risk here in terms of where the active customer base is in absolute terms?
Niraj S. Shah - Wayfair Inc. - Co-Founder, Co-Chairman, President & CEO
Let me just jump in real quick, Michael, sorry, and then you please chime in. I think there's a math optical illusion there as well that
I'd just point to. Q1 to Q2 of last year, we added 5 million active customers. The way the math works is if you don't buy for a 12-month
period, you fall out of the number. And so as you noted, it went -- goes down 2 million sequentially from Q1 to Q2, but Q2 year-over-year
goes up by 5 million. And it's that 12-month cycle with a particularly large jump up from Q1 to Q2 that makes the Q1 to Q2 of this
year look a little odd. But if you zoom back out, the underlying trends are all very strong. You can see that in the repeat as a portion
of total measure. And so you'll see the normal pattern kind of come back now that you're past that onetime blip from a year ago.
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