Wayfair Inc Q2 2021 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

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 in that segment as a whole or on a country-by-country level? Niraj S. Shah - Wayfair Inc. - Co-Founder, Co-Chairman, President & CEO Well, so as you know, we operate -- we sell in 4 countries today, obviously, the U.S., Canada, the U.K. and Germany. And I would say what's happening in all 4 is very similar to one another, although the exact timing has shifted in each one sort of this way or that way by some period of weeks or months. And so we're seeing the same cycles playing out. And so I don't know if there's anything significantly to note. We're obviously a smaller player in some markets than others, which means we have a lower percent of the total, which means we can grow at a faster rate more easily. But we're a small player in all of them. So the growth is really ahead of us in all of them, and there's no real thing to point to. Michael, do you have anything to add there?

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? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. AUGUST 05, 2021 / 12:00PM, W.N - Q2 2021 Wayfair Inc Earnings Call 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.