Wayfair Inc (W) 2024 Q3 法說會逐字稿

Good day and welcome to the Wayfair third-quarter 2024 earnings release and conference call. (Operator Instructions) And finally, I would like to advise all participants that this call is being recorded. Thank you.

美好的一天，歡迎來到 Wayfair 2024 年第三季收益發布和電話會議。 （操作員說明）最後，我想告知所有參與者，本次通話正在錄音。謝謝。

I'd now like to welcome James Lamb, Head of Investor Relations to begin the conference. James, over to you.

現在我歡迎投資者關係主管 James Lamb 開始會議。詹姆斯，交給你了。

Good morning, and thank you for joining us. Today, we will review our third quarter 2024 results. With me are Niraj Shah, Co-Founder, Chief Executive Officer and Co-Chairman; Steve Conine, Co-Founder and Co-Chairman; and Kate Gulliver, Chief Financial Officer and Chief Administrative Officer. We will all be available for Q&A following today's prepared remarks.

早安，感謝您加入我們。今天，我們將回顧 2024 年第三季的業績。和我在一起的還有共同創辦人、執行長兼聯合主席 Niraj Shah； Steve Conine，共同創辦人兼聯合主席；財務長兼首席行政官 Kate Gulliver。在今天準備好的發言之後，我們都可以接受問答。

I would like to remind you that our call today will consist of forward-looking statements, including, but not limited to, those regarding our future prospects, business strategies, industry trends and our financial performance, including guidance for the fourth quarter of 2024. All forward-looking statements made on today's call are based on information available to us as of today's date. We cannot guarantee that any forward-looking statements will be accurate, although we believe that we have been reasonable in our expectations and assumptions.

我想提醒您，我們今天的電話會議將包含前瞻性陳述，包括但不限於有關我們的未來前景、業務戰略、行業趨勢和財務業績的陳述，包括 2024 年第四季度的指導。所做的所有前瞻性陳述均基於截至今天為止我們掌握的資訊。儘管我們相信我們的預期和假設是合理的，但我們不能保證任何前瞻性陳述都是準確的。

Our 10-K for 2023, our 10-Q for this quarter, and our subsequent SEC filings identify certain factors that could cause the company's actual results to differ materially from those projected in any forward-looking statements made today. Except as required by law, we undertake no obligation to publicly update or revise any of these statements, whether as a result of any new information, future events or otherwise.

我們的 2023 年 10-K、本季的 10-Q 以及隨後向 SEC 提交的文件確定了某些可能導致公司實際業績與今天做出的任何前瞻性聲明中預測的結果存在重大差異的因素。除法律要求外，我們不承擔公開更新或修改任何這些聲明的義務，無論是由於任何新資訊、未來事件或其他原因。

Also, please note that during this call, we will discuss certain non-GAAP financial measures as we review the company's performance, including adjusted EBITDA, adjusted EBITDA margin and free cash flow. These non-GAAP financial measures should not be considered replacements for and should be read together with GAAP results. Please refer to the Investor Relations section of our website to obtain a copy of our earnings release and investor presentation, which contain descriptions of our non-GAAP financial measures and reconciliations of any non-GAAP measures to the nearest comparable GAAP measures. This call is being recorded, and a webcast will be available for replay on our IR website.

另請注意，在本次電話會議中，我們將在審查公司績效時討論某些非公認會計原則財務指標，包括調整後的 EBITDA、調整後的 EBITDA 利潤率和自由現金流。這些非公認會計原則財務指標不應被視為替代公認會計原則結果，而應與公認會計原則結果一起閱讀。請參閱我們網站的投資者關係部分，以取得我們的收益發布和投資者簡報的副本，其中包含我們的非 GAAP 財務指標的描述以及任何非 GAAP 指標與最接近的可比較 GAAP 指標的調整。本次通話正在錄音，我們的 IR 網站上將提供網路廣播重播。

I would now like to turn the call over to Niraj.

我現在想把電話轉給 Niraj。

Thanks, James, and good morning, everyone. I'm excited to share our third quarter results with you today. Q3 marked another proof point of resilience for Wayfair with further market share capture in the face of sustained challenges in the category. Once again, we navigated a dynamic consumer environment while driving further discipline on costs to achieve a mid-single-digit adjusted EBITDA margin for the second quarter in a row. But that's just one piece of the picture.

謝謝詹姆斯，大家早安。我很高興今天與您分享我們第三季的業績。第三季標誌著 Wayfair 的韌性的另一個證明點，面對該類別的持續挑戰，進一步佔領了市場份額。我們再次駕馭充滿活力的消費者環境，同時進一步加強成本控制，連續第二季實現中個位數的調整後 EBITDA 利潤率。但這只是圖片的一小部分。

As I've mentioned many times before, our North Star is driving adjusted EBITDA in excess of equity-based compensation and CapEx, and we're pleased to be making noteworthy improvements across each one of these totaling almost $100 million year-over-year in Q3. The third quarter exhibited a continuation of choppy macro trends we've seen across 2024. Consumers remain trepidatious in their spending patterns and are demonstrating more price elasticity than we saw in the early months of the year. While we were pleased with the response we saw over Way Day at the start of the quarter, which we ran as an extended event for the first time this fall, it has become clear even as we exited September that we were seeing a broader pullback by shoppers in the lead-up to the election.

正如我之前多次提到的，我們的北極星正在推動調整後的 EBITDA 超過基於股權的薪酬和資本支出，我們很高興在其中每一項方面都取得了顯著的改進，同比總計近 1 億美元在第三季。第三季延續了我們在 2024 年看到的波動宏觀趨勢。雖然我們對本季初在“Way Day”上看到的反應感到滿意，今年秋天我們首次將其作為延長活動舉辦，但即使在 9 月結束時，我們也清楚地看到了更廣泛的回調選舉前的購物者。

Attention is focused away from the home right now and when customers are in the market is increasingly for lower investment, lower consideration purchases versus larger ticket items that represent our traditional area of strength. We remain optimistic that pieces are coming together to support a category recovery in the quarters to come. While it will take some time to play out, this improvement is poised to provide some relief in what has become a historic slowdown in the housing market.

現在，人們的注意力不再集中在家庭上，當客戶進入市場時，越來越多地尋求較低投資、較低考慮因素的購買，而不是代表我們傳統優勢領域的大件商品。我們仍然樂觀地認為，各方面的努力將共同支持未來幾季的品類復甦。雖然這需要一段時間才能見效，但這項改善有望緩解房地產市場歷史性放緩的局面。

Redfin published an analysis at the end of Q3, noting that just 25 of every 1,000 U.S. homes changed hands in the first 8 months of the year, the lowest level they saw in their study running back to 2012 and more than 30% below the turnover levels back in 2019.

Redfin 在第三季末發表了一份分析報告，指出今年前8 個月，每1,000 套美國房屋中只有25 套易手，這是他們研究中自2012 年以來的最低水平，比營業額低30%以上回到2019年的水準。

Now as we've said for many quarters, we are not running the business with the expectation of a recovery in any specific time frame. For more than 2 years, we've done 2 things simultaneously, driving cost efficiency and spending discipline to run the business profitably in a recessionary environment and setting ourselves up to be a considerable beneficiary when the category does return to growth.

現在，正如我們在多個季度中所說的那樣，我們在經營業務時並不期望在任何特定時間範圍內復甦。兩年多來，我們同時做了兩件事：提高成本效率和支出紀律，以便在經濟衰退的環境中實現業務盈利，並在該類別確實恢復增長時使自己成為可觀的受益者。

You've seen the former quite clearly with what is now 9 sequential quarters of compression in our fixed costs and a third quarter result that is the lowest SOT G&A we've had since 2021. The latter you've seen us demonstrate across several vectors. For much of 2023, our mantra focused on the core recipe, bringing the best combination of competitive pricing, fast delivery and broad availability together into an offering that wins customer orders day in and day out.

您已經非常清楚地看到了前者，我們的固定成本現已連續9 個季度壓縮，而第三季度的結果是我們自2021 年以來最低的SOT G&A。了演示。在2023 年的大部分時間裡，我們的口號都集中在核心配方上，將有競爭力的價格、快速交付和廣泛可用性的最佳組合結合在一起，打造出日復一日贏得客戶訂單的產品。

Across 2024, we want a step further by concentrating on strategies to drive mind share and frequency, including the 3 major initiatives we've spoken to several times. Even if customers aren't shopping for their homes at the moment, when that time does come, we want to make sure Wayfair is their first destination. These efforts include many things such as our brand refresh back in March and the launch of our first large format Wayfair branded store over Memorial Day weekend.

到 2024 年，我們希望更進一步，專注於推動思想共享和頻率的策略，包括我們多次討論過的 3 項主要舉措。即使顧客目前不打算買房，當時機到來時，我們也希望確保 Wayfair 是他們的第一個目的地。這些努力包括許多事情，例如我們在三月的品牌更新以及在陣亡將士紀念日週末推出我們的第一家大型 Wayfair 品牌商店。

Our new initiative is our loyalty offering, which just began rolling out last week. For $29 per year, Wayfair Rewards customers will unlock exceptional value and experiences with benefits including 5% back on purchases, free shipping on all orders access to exclusive shopping events, special offers and a dedicated members-only support line.

我們的新措施是我們的忠誠度服務，上週才剛開始推出。 Wayfair Rewards 客戶只需每年 29 美元，即可獲得非凡的價值和體驗，享受的福利包括 5% 的購物返利、所有訂單免費送貨、享受獨家購物活動、特別優惠和專門的會員專線支援熱線。

We know how much investors love (inaudible), so let me walk you through the business model of Wayfair Rewards at a high level. Our average customer typically shops on Wayfair about twice a year, spending around $300 per order. Priced at $29 per year, the 5% back benefit would be roughly breakeven for our average shopper. Our goal is to push customers out of that tours for your bucket into the 3 orders per year bucket or even higher.

我們知道投資人的喜愛程度（聽不清楚），所以讓我從高層次向您介紹 Wayfair Rewards 的商業模式。我們的普通客戶通常每年大約在 Wayfair 上購物兩次，每個訂單花費約 300 美元。每年 29 美元的價格，5% 的回饋對我們的普通購物者來說基本上是收支平衡的。我們的目標是將客戶從您的旅行團中推向每年 3 個訂單甚至更高的數量。

While we have more than 20 million active customers who have placed at least a single order over the past 12 months, about 10 of those are shoppers that have made 4 or more orders in the same time frame. We see an important opportunity to grow that figure given shoppers typically purchase in the category 6 to 8x per year. There's a flywheel we see from customers that grow their shopping occasions on Wayfair as they increasingly spend more time on the site, rouse a broader selection of the catalog and are more likely to shop through our app.

雖然我們有超過 2000 萬活躍客戶在過去 12 個月內至少下了一個訂單，但其中大約 10 名購物者在同一時間範圍內下了 4 個或更多訂單。鑑於購物者通常每年購買該類別的商品 6 至 8 倍，我們看到了增加這一數字的重要機會。我們從客戶那裡看到了一個飛輪，他們在Wayfair 上的購物次數不斷增加，因為他們在網站上花費的時間越來越多，激發了更廣泛的目錄選擇，並且更有可能透過我們的應用程式購物。

These behaviors are self-reinforcing, and we see that the path for a shopper to move from 3 to 4 orders per year is even quicker than the path from 2 to 3. Customers who shop 4 or more times on Wayfair in any 12-month period, not only spend more but also nearly one-third more likely to come to us via free traffic. So growing that cohort is highly beneficial to margins. With the benefits of Wayfair Rewards, if that average customer now makes an incremental third order on Wayfair versus a competitor, we've grown our share of wallet by 50%. Those 3 orders at $300 a piece are worth $900 of total revenue, $45 of which goes back to the customer, thanks to the program.

這些行為是自我強化的，我們發現購物者每年從3 個訂單轉向4 個訂單的路徑甚至比從2 個訂單轉向3 個訂單的路徑更快。的客戶在此期間，不僅花費更多，而且透過免費流量來找我們的可能性也增加了近三分之一。因此，擴大這一群體對利潤率非常有利。借助 Wayfair Rewards 的優勢，如果該普通客戶現在在 Wayfair 上比競爭對手增加第三筆訂單，我們的錢包份額就增加了 50%。這 3 個訂單的單價為 300 美元，總收入為 900 美元，其中 45 美元透過該計劃返還給客戶。

Accounting for the annual fee, we've now nicely grown revenue per customer per year profitably. That doesn't even include the efficiency on advertising as Wayfair Rewards customers are that much more likely to return on a direct basis. There's tremendous potential here to drive more frequency amongst our existing as well as new shoppers. We're excited about all the different ways customers will be able to interact with the new program from deal hunting in our member exclusive sales to saving up rewards over time for big aspirational upgrades.

考慮到年費，我們現在每年每位客戶的收入都在大幅成長，並且獲利。這甚至不包括廣告效率，因為 Wayfair Rewards 客戶更有可能直接返回。這裡有巨大的潛力可以提高現有和新購物者的購買頻率。我們對客戶能夠以各種不同的方式與新計劃進行互動感到興奮，從在我們的會員專屬銷售中尋找優惠，到隨著時間的推移為大的理想升級節省獎勵。

One of the areas we're excited to stimulate is in the frequency portion of our catalog like kitchenware, tabletop, decor and bedding where the benefit value really stands out. We plan to lean into the treat yourself angle of the program and encourage customers to use their rewards for all those upgrades and finishing touches that they have been dreaming of but may not have had the budget for.

我們很高興刺激的領域之一是我們目錄中的頻率部分，如廚具、桌面、裝飾和床上用品，其中的效益價值非常突出。我們計劃從獎勵自己的角度出發，鼓勵客戶將獎勵用於他們一直夢想但可能沒有預算的所有升級和收尾工作。

We're also eager to bring the program to new movers and project shoppers like renovators or remodelers. These are customers with high category needs who can draw a lot of value from the program. We've been focusing on these audiences for some time across our marketing and sales organizations, and we're excited to incorporate the value proposition of Wayfair Rewards in those outreaches to better attract their full business.

我們也渴望將該計劃帶給新搬家者和專案購買者，例如翻新者或改建者。這些客戶具有較高的品類需求，可以從該計劃中獲得許多價值。一段時間以來，我們的行銷和銷售組織一直關注這些受眾，我們很高興能夠將 Wayfair Rewards 的價值主張納入這些推廣活動中，以更好地吸引他們的全部業務。

You've likely seen some of this marketing outreach since the launch of our brand refresh. As we discussed right after the debut in the spring, this was years in the making, and we've been extremely pleased at the results we've seen in the months since. Much of our work has been focused higher in the customer acquisition funnel as we've increased our investment in television, social media and streaming audio and video.

自從我們推出品牌更新以來，您可能已經看到了一些此類行銷活動。正如我們在春季首次亮相後所討論的那樣，這是經過多年的製作，我們對幾個月後所看到的結果感到非常滿意。隨著我們增加對電視、社交媒體以及串流音訊和視訊的投資，我們的大部分工作都集中在客戶獲取管道上。

Since Q1, we've seen nice improvements in qualified recall waiting, which measures how well customers recall seeing any advertising from Wayfair across any channel. This is an important high-level view of how our advertising is resonating with consumers and to what degree they recall key details like our product message and identity. In fact, we are now ranked in the top 10 among major retailers.

自第一季以來，我們在合格召回等待方面看到了很大的改進，它衡量了客戶對透過任何管道看到 Wayfair 的任何廣告的回憶程度。這是我們的廣告如何與消費者產生共鳴以及他們在多大程度上回憶起我們的產品資訊和身分等關鍵細節的重要高層視圖。事實上，我們現在在主要零售商中排名前十。

When we launched the Wayborhood, we talked about driving creative content that could exist across our portfolio of advertising channels and serve as a foundation for many years of marketing campaigns to come. In fact, in the past few weeks, we've rolled out our first major update to the Wayborhood with our holiday chapter and are in active development on more content for 2025.

當我們推出 Wayborhood 時，我們談到了推動創意內容，這些內容可以存在於我們的廣告管道組合中，並作為未來多年行銷活動的基礎。事實上，在過去的幾周里，我們已經透過假期章節推出了 Wayborhood 的首次重大更新，並正在積極開發 2025 年的更多內容。

We've seen very healthy ROI on the first iteration of the campaign with strong results when it comes to brand linkage and awareness as customers are quickly coming to recognize the Wayborhood as a symbol of Wayfair. This has translated to positive movement in our core metrics, direct traffic and even more importantly, revenue per direct visits.

我們在活動的第一次迭代中看到了非常健康的投資回報率，在品牌聯繫和知名度方面取得了良好的成果，因為客戶很快就認識到 Wayborhood 作為 Wayfair 的象徵。這轉化為我們的核心指標、直接流量，甚至更重要的是，每次直接訪問的收入的積極變化。

Back in the spring, I noted how the launch of the campaign came alongside a refreshed view of our channel mix as we step more holistically into parts of the advertising funnel where we had been lagging behind. It should come as no surprise that influencer marketing has grown to be an incredibly important way that customers are exposed to the category. Shoppers are now routinely looking towards (inaudible) Instagram Reels, TikTok and more for inspiration on their next home purchases. Our reach and influencer marketing today is quite small relative to potential, and we're excited to scale it.

早在春天，我就注意到，隨著我們更全面地進入廣告漏斗中我們一直落後的部分，該活動的推出是如何與我們的管道組合煥然一新的。毫不奇怪，影響者行銷已成為客戶接觸該類別的極其重要的方式。購物者現在經常透過（聽不清楚）Instagram Reels、TikTok 等來尋找下一次購屋的靈感。相對於潛力而言，我們今天的影響力和影響者行銷規模相當小，我們很高興能夠擴大規模。

Based on feedback from the creator community, we've made significant investments in improving the terms and technology supporting our program. Creators are eager to work with Wayfair because we treat them with the same mindset we treat our suppliers. We succeed when they succeed. This plan is working. We have dramatically increased our monthly piece of content produced by the nearly 4,000 and growing creators we've partnered with.

根據創作者社群的回饋，我們在改進支持我們計劃的條款和技術方面進行了大量投資。創作者渴望與 Wayfair 合作，因為我們對待他們的態度與對待供應商的態度相同。當他們成功時我們也成功。這個計劃正在發揮作用。我們已經大幅增加了與我們合作的近 4,000 名創作者以及不斷成長的創作者每月製作的內容。

Over the summer, we've amplified our influencer content and are seeing promising return on ad spend for the dollars we've tested. In fact, we've seen payback windows that are on par with what we find on lower funnel social ads, all while attracting what we expect to be higher lifetime value customers. We have a dense product road map that will allow us to scale breadth and depth of activities with influencers in partnership with our suppliers across the major platforms. This will open the door to working with an even wider field of creative talent as we get into 2025.

今年夏天，我們擴大了影響力內容，並看到我們測試過的廣告支出有可觀的回報。事實上，我們看到的投資回收期與我們在漏斗下端社交廣告中發現的投資回收期相當，同時吸引了我們期望的更高終身價值的客戶。我們有一個密集的產品路線圖，這將使我們能夠與主要平台上的供應商合作，擴大與影響者的活動的廣度和深度。進入 2025 年，這將為我們與更廣泛領域的創意人才合作打開大門。

The ROI here is clear to us, but we want to make it clear to you. We're still operating within our rigorous payback thresholds that extend up to one year but are often much quicker.

這裡的投資報酬率對我們來說很清楚，但我們想讓您也清楚。我們仍在嚴格的投資回收閾值內運營，該閾值最長可達一年，但通常要快得多。

As I mentioned at the outset, we remain laser-focused on driving healthy profitability, while setting ourselves up for success as the category rebounds. That has been the core goal across all 3 of our major initiatives in 2024 to foster customer loyalty and spur repeat business while driving economic value.

正如我在一開始提到的，我們仍然專注於推動健康的獲利能力，同時為隨著該類別的反彈而取得成功做好準備。這是我們 2024 年所有 3 項主要措施的核心目標，旨在培養顧客忠誠度並刺激回頭客，同時推動經濟價值。

By leaning into marketing strategies that build brand affinity and introducing programs like Wayfair Rewards to enhance the customer experience, we're not just aiming for short-term gains, of building long-lasting relationships with our customers that will be accretive on both the top and bottom lines. Thank you. We hope you all have a festive holiday season.

透過採用建立品牌親和力的行銷策略，並引入 Wayfair Rewards 等計畫來增強客戶體驗，我們的目標不僅僅是短期收益，而是與客戶建立持久的關係，這將在雙方都獲得增值和底線。謝謝。我們希望大家度過一個節日。

And now let me pass it to Kate to go through our financials.

現在讓我把它交給凱特，讓她了解我們的財務狀況。

Thanks, Niraj, and good morning, everyone. Let's dive into our third quarter results, beginning with the top line. Net revenue was down 2% year-over-year in Q3 or down about 7.5% on a sequential basis, closely in line with the sequential pattern we saw in 2023. This is driven by orders down 6.1% versus the year ago period modestly offset by AOV, which was up 4.4% year-on-year and down 1% sequentially, again, in line with what we would typically expect to see in the seasonal cadence moving from the second to the third quarter of the year.

謝謝，Niraj，大家早安。讓我們從營收開始深入了解第三季的業績。第三季淨收入年減 2%，季減約 7.5%，與我們在 2023 年看到的環比模式密切相關。 4.4%，環比下降1%，這與我們通常預期的從第二季到第三季的季節性節奏一致。

Let me now continue to walk down the P&L. As I do, please note that the remaining financials include depreciation and amortization, but exclude equity-based compensation, related taxes and other adjustments. I will use the same basis when discussing our outlook as well.

現在讓我繼續了解損益表。正如我所做的那樣，請注意，其餘財務數據包括折舊和攤銷，但不包括股權薪資、相關稅費和其他調整。在討論我們的前景時，我也會使用相同的基礎。

Gross margin for the quarter was 30.3% of net revenue. Back in August, we talked at length about the changing dynamics we have seen in customer price sensitivity and the opportunity we identify to lean and on take rates to drive incremental order capture. We heard many questions from investors around how this differs from funding promotions. So let me take a moment to address that because the answer fundamentally comes down to magnitude.

該季度毛利率佔淨收入的 30.3%。早在八月，我們就詳細討論了我們在客戶價格敏感度方面看到的動態變化，以及我們發現的精益和採取率以推動增量訂單捕獲的機會。我們聽到投資人提出很多問題，詢問這與融資促銷有何不同。因此，讓我花點時間來解決這個問題，因為答案從根本上歸結為大小。

For years now, we've seen robust interest by suppliers to participate in promotional events, where you'll see headline items at prices that are 20%, 30% off or more. These discounts are aligned in partnership with our suppliers and are funded through a reduction in their wholesale price, which we then reflect by lowering retail, while our gross margin remains resilient throughout. That's part of the reason why we've been happy to ramp up the number of promotional events and grow existing events like we did with Way Day last month. Promotion remains a critical marketing tool to drive customer engagement at a moment in time when the focus is just not centered on the home and supplier demand to participate in promotions remains quite high.

多年來，我們發現供應商對參加促銷活動表現出濃厚的興趣，在促銷活動中您會看到頭條商品的價格有 20%、30% 甚至更多折扣。這些折扣是與我們的供應商合作進行的，並透過降低批發價格來提供資金，然後我們透過降低零售價格來反映這一點，而我們的毛利率始終保持彈性。這就是為什麼我們很高興增加促銷活動的數量並增加現有活動的部分原因，就像我們上個月在 Way Day 所做的那樣。當焦點不再集中在家庭上並且供應商參與促銷的需求仍然很高時，促銷仍然是推動客戶參與的重要行銷工具。

Now when we talk about making our own investment into lower take rates, the scale is very different from the discounting you'll see from suppliers and promotion. The magnitude of the investment here is in the tens of basis points at the consolidated level, hence, targeting gross margin in the lower half of our 30% to 31% range. Across our nearly 10 million orders per quarter, we're able to collect a tremendous amount of data on price elasticity (inaudible) with a highly tuned degree of precision, determine exactly which classes and geographies would see an order lift from a very modest reduction in the take rate.

現在，當我們談論自己投資以降低接受率時，其規模與您從供應商和促銷中看到的折扣有很大不同。這裡的投資規模在綜合水準上為數十個基點，因此，毛利率目標為 30% 至 31% 範圍的下半部。在每季近 1000 萬個訂單中，我們能夠以高度精確的程度收集有關價格彈性（聽不清楚）的大量數據，準確確定哪些類別和地區的訂單會從非常適度的減少中獲得提昇在採納率中。

As we've said for some time, it's considerably more valuable to multi-quarter gross profit and adjusted EBITDA dollars to have an incremental order come in at a gross margin in the low end of that range they miss out on that order because we were keeping our gross margins at the top end. We're pleased with the results we're seeing so far as we've made this price investment, and you should expect that this will continue as we exit this year and enter 2025.

正如我們一段時間以來所說的那樣，對於多季度毛利潤和調整後的 EBITDA 美元來說，以毛利率處於該範圍低端的增量訂單更有價值，他們錯過了該訂單，因為我們將我們的毛利率維持在最高水準。我們對迄今為止所看到的價格投資結果感到滿意，您應該預計，隨著我們今年退出並進入 2025 年，這種情況將繼續下去。

Of course, the other question we hear from investors is why make this investment if you still are seeing orders and revenue contract year-over-year. Our response to that is to once more point to the share picture. As Niraj said earlier, our ability to outpace growth of the category while still driving a strong margin profile for the business, allows us to capture share now and sets us up for significant strength when customers begin to shop for the home in a more robust fashion once more.

當然，我們從投資者那裡聽到的另一個問題是，如果您仍然看到訂單和收入逐年收縮，為什麼還要進行這項投資。我們對此的回應是再次指向分享圖片。正如Niraj 早些時候所說，我們有能力超越該類別的成長，同時仍為該業務帶來強勁的利潤率，這使我們能夠立即佔領市場份額，並在客戶開始以更強勁的方式購買房屋時為我們奠定強大的實力再次。

Now moving further down the P&L. Customer service and merchant fees were 3.7% of net revenue, while advertising was 12.3%. That was slightly higher than where our advertising margin had been in recent quarters as a result of the renewed investment opportunities Niraj outlined. We're excited for the major unlocks we are seeing across the advertising funnel but are keeping a steady hand on the wheel as we ensure that each dollar is spent with strict adherence to our payback windows.

現在進一步降低損益表。客戶服務和商家費用佔淨收入的 3.7%，廣告費佔 12.3%。由於 Niraj 概述的新投資機會，我們的廣告利潤率略高於最近幾季的水平。我們對在廣告管道中看到的重大解鎖感到興奮，但我們會保持穩定的控制，確保每一美元都嚴格遵守我們的投資回收期。

Our selling, operations, technology, general and administrative expenses totaled $388 million in the third quarter, a more than $70 million improvement versus the third quarter last year and $274 million improvement on a trailing 12-month basis.

第三季我們的銷售、營運、技術、一般和管理費用總計 3.88 億美元，比去年第三季減少了 7,000 萬美元以上，比過去 12 個月減少了 2.74 億美元。

As I talked about investing in gross margin and advertising earlier, those of you who have followed Wayfair for years may have had flashbacks to our history of investment cycle at the expense of profitability. What we've made clear over the past 2 years is that Wayfair is now fundamentally a different company than we were in the past. We are at a level of scale and maturity where we can both invest for growth and drive profitability at the same time.

正如我之前談到的毛利率和廣告投資，那些關注 Wayfair 多年的人可能會回想起我們以犧牲盈利能力為代價的投資週期的歷史。過去兩年我們已經明確表示，Wayfair 現在與過去相比已經是一家根本不同的公司。我們的規模和成熟度足以讓我們既可以投資促進成長，又可以同時提高獲利能力。

So when I talk about compressing take rates or leaning into advertising due to their quick payback, you can see that we are funding these investments through further discipline as we manage our fixed cost base. A paradigm, we will continue to uphold.

因此，當我談到壓縮收視率或由於廣告的快速回報而傾向於廣告時，您可以看到，在我們管理固定成本基礎時，我們正在透過進一步的紀律為這些投資提供資金。一個典範，我們將繼續秉承。

Ultimately, we are focused on growing adjusted (inaudible) and this is part of why we are comfortable committing to 2025 adjusted EBITDA dollars being higher than 2024. Altogether, we generated $119 million of adjusted EBITDA in the third quarter for a margin of 4.1% of net revenue. As Niraj mentioned earlier, this was our second consecutive quarter of mid-single-digit adjusted EBITDA margin, and we have now proven that we can operate at this level despite year-over-year revenue contraction.

最終，我們專注於調整後的成長（聽不清楚），這也是我們願意承諾2025 年調整後EBITDA 高於2024 年的部分原因。為4.1%淨收入。正如 Niraj 之前提到的，這是我們連續第二個季度調整後 EBITDA 利潤率為中個位數，而且我們現在已經證明，儘管收入同比收縮，我們仍然可以在這個水平上運作。

We ended the quarter with $1.3 billion of cash and equivalents and $1.9 billion of total liquidity when factoring in our undrawn revolving credit facility. This was, of course, before we bolstered our cash balance further with the close of our inaugural high-yield debt offering in early October. We saw investor demand many times larger than the $800 million that we raised, which was a testament to the tremendous work we've done on driving profitability across the business.

考慮到未提取的循環信貸額度，本季末我們的現金及等價物為 13 億美元，流動性總額為 19 億美元。當然，這是在我們於 10 月初完成首次高收益債券發行以進一步增強現金餘額之前的情況。我們看到投資者的需求比我們籌集的 8 億美元大很多倍，這證明了我們在提高整個業務盈利能力方面所做的巨大工作。

With the rapid improvement in our financial profile and movement across rates and credit spreads, we saw an opportune time to derisk the balance sheet by effectively prefunding our upcoming convertible maturities in 2025. As I've said from the beginning of the year, we are laser-focused on delevering the business over the years to come, and we will use these proceeds in combination with our own free cash flow generation to handle our coming obligations.

隨著我們的財務狀況以及利率和信用利差變動的迅速改善，我們看到了透過有效地為2025 年即將到期的可轉換債券進行預先融資來消除資產負債表風險的好時機。年初所說的那樣，我們正在我們將在未來幾年專注於業務去槓桿化，我們將利用這些收益與我們自己的自由現金流生成相結合來處理我們未來的義務。

Now rounding out the cash flow statement. Cash from operations was $49 million in the third quarter, offset by capital expenditures of $58 million. This CapEx was a bit lower than our guided range due to a combination of timing and further expense rigidity on our part. So while there will be some catch-up in Q4, the net will still be lower than the run rate or Q3 guide implied. The end result was free cash flow of negative $9 million in the third quarter.

現在完善現金流量表。第三季營運現金為 4,900 萬美元，被 5,800 萬美元的資本支出所抵銷。由於時間安排和我們進一步的費用剛性，此資本支出略低於我們的指導範圍。因此，雖然第四季會有一些追趕，但淨值仍將低於隱含的運行率或第三季指南。最終結果是第三季自由現金流為負 900 萬美元。

Let's now turn to the fourth quarter guidance as we round out the year. Beginning with the top line, quarter-to-date, we are flat to down slightly year-over-year and expect to end the full quarter down in the low single-digit range. This contemplates sequential seasonality in line with what we saw last year. While we're pleased with the strength we saw on Way Day and are excited for the holiday season ahead, we're also cognizant that the weakness in the category on top of all the distractions facing consumers right now create a challenging operating environment.

現在讓我們來看看第四季的指導，因為我們已經結束了這一年。從營收開始，本季迄今，我們的營收與去年同期相比持平甚至略有下降，預計整個季度的營收將保持在較低的個位數範圍內。這考慮了與我們去年看到的連續季節性有關的情況。雖然我們對在Way Day 上看到的實力感到滿意，並對即將到來的假期季節感到興奮，但我們也認識到，除了消費者目前面臨的所有乾擾之外，該類別的弱點創造了一個充滿挑戰的營運環境。

Turning to gross margin, we would guide you to the lower end of the 30% to 31% range once again as we continue to lean in on take rates in the strategic areas where we see valuable payoffs in order capture, Customer service and merchant fees should be just below 4% again as well. Advertising should end up in a range of 12% to 13% of net revenue and likely towards the upper end of this range. This is higher than in the past few quarters, as we see clear demonstrable evidence of high-value opportunities to lean in here to drive further share capture as we get into 2025. It's important to bear in mind that many of the dollars spent today are driving order capture in the next few quarters.

談到毛利率，我們將再次引導您達到 30% 至 31% 範圍的下限，因為我們繼續依靠策略領域的獲取率，在這些領域，我們在訂單捕獲、客戶服務和商家費用方面看到了寶貴的回報也應該再低於4%。廣告最終應佔淨收入的 12% 至 13%，並且很可能接近該範圍的上限。這一數字高於過去幾個季度，因為我們看到了明顯的證據，表明在進入2025 年時，這裡存在著高價值機會，可以推動進一步獲取份額。都是推動未來幾季的訂單取得。

Finally, SOTG&A should fall in the $400 million to $410 million range. We saw some spending that had been planned for the third quarter shift to Q4. So there's a slight normalization here as you think about the sequential trend. Following this guidance down the P&L would lead to a fourth quarter adjusted EBITDA margin in the 2% to 4% range.

最後，SOTG&A 應該在 4 億至 4.1 億美元之間。我們看到原計劃在第三季進行的一些支出轉移到了第四季。因此，當您考慮連續趨勢時，這裡會出現輕微的標準化。依照這項指引，損益表將導致第四季調整後的 EBITDA 利潤率在 2% 至 4% 範圍內。

Even with a challenging top line environment, this puts us right in line with the commitment we made to drive at least 50% growth in 2024 adjusted EBITDA dollars, which is a testament to our steadfast focus on cost efficiency.

即使面臨充滿挑戰的營收環境，這也使我們能夠兌現我們所做的承諾，即推動 2024 年調整後 EBITDA 美元增長至少 50%，這證明了我們對成本效率的堅定關注。

Now let me touch on a few housekeeping items. You should expect equity-based compensation and related taxes of roughly $90 million to $110 million, depreciation and amortization of approximately $90 million to $95 million, net interest expense of approximately $14 million, weighted average shares outstanding of approximately $125 million and CapEx in a $60 million to $70 million range. Layering this on top of the expectations for adjusted EBITDA and the working capital benefit with revenue up sequentially in the fourth quarter, we would expect healthy free cash flow generation to round out the year.

現在讓我談談一些家務用品。您預計股權薪酬和相關稅費約為9,000 萬至1.1 億美元，折舊和攤提約9,000 萬至9,500 萬美元，淨利息支出約1,400 萬美元，加權平均已發行股票約1.25 億美元，資本支出約為60 美元百萬到七千萬美元不等。再加上調整後的 EBITDA 和營運資本收益以及第四季度收入連續增長的預期，我們預計全年將產生健康的自由現金流。

I want to make sure investors appreciate just how unique 2024 has been in the context of Wayfair's long history. We spent many years post our IPO focused primarily on growth and then over the past several years, appropriately pivoted to prioritize profitability. 2024 has marked a return to the pre-IPO form of this business, balancing the dual mandate of driving progress on both the top and bottom line, and there is more to come in 2025.

我希望確保投資者認識到 2024 年在 Wayfair 悠久的歷史背景下是多麼獨特。在首次公開募股後，我們花了很多年時間主要關注成長，然後在過去幾年中，適當地轉向優先考慮獲利能力。 2024 年，該業務回歸 IPO 前的狀態，平衡了推動營收和利潤成長的雙重使命，2025 年將有更多進展。

As we close out the year, I want to draw back to Niraj and Steve's remarks from their shareholder letter from February. Our mission is to make Wayfair as the best place to shop for the home over not just the next quarter or a year but the next decade and beyond. We believe the best is yet to come and have never been more excited to execute against the tremendous opportunity in front of us. Thank you.

在我們結束這一年之際，我想回顧一下尼拉吉和史蒂夫在二月股東信中的言論。我們的使命是讓 Wayfair 成為購買房屋的最佳場所，不僅是在下一個季度或一年，而且是在下一個十年甚至更長的時間內。我們相信最好的尚未到來，我們從未如此興奮地抓住我們面前的巨大機會。謝謝。

And now Niraj, Steve and I will take your questions.

現在尼拉吉、史蒂夫和我將回答你們的問題。

(Operator Instructions) Ygal Arounian, Citi.

（操作員指令）Ygal Arounian，花旗銀行。

Hey, good morning, guys. Maybe just first on on the share gain that you're seeing you can quantify or qualify that of a little bit more as I do see it all coming from from a pricing, but that you can deliver. Are there other factors that that you're seeing from? And how deep How do we think about that as the market gets better as you're preparing for that? And then on the 2025 EBITDA uncommon, Terry, anymore color we can get around that level of confidence as we talked about the mid 10s, incremental EBITDA margins. Just how do we think about that on a category that maybe doesn't improve as we work our way through the beginning of next year or at least?

嘿，早上好，夥計們。也許首先你看到的份額收益可以量化或限定更多一點，因為我確實看到這一切都來自定價，但你可以交付。您還看到其他因素嗎？當您為此做準備時，隨著市場變得更好，我們如何看待這一點？然後，關於 2025 年 EBITDA 的不常見情況，特里，當我們談論 10 年代中期的增量 EBITDA 利潤率時，我們可以繞過這種信心水平。我們如何看待這個類別，因為我們在明年初或至少在努力的過程中可能不會改善？

Thank you for yet. You're saying thanks for the questions, MEM. So from a run through them. And then, Keith, if there's anything you want to take, you can jump in on the first one around the share gain. We're seeing. So I would say since the end of 2022 versus Q4 2020, we've kind of consistently seen ourselves gaining market share every quarter, hitting all-time highs in the credit card panels that we get on market share. And in terms of how we're doing it, you mentioned pricing and I'd say optimizing our pricing maximize our profit dollars is certainly one thing. Again, we didn't really change price members.

謝謝你。 MEM，你是在說謝謝你的提問。所以從運行它們來看。然後，基思，如果你有什麼想要的，你可以加入關於股票收益的第一個。我們正在看到。因此，我想說，自 2022 年底與 2020 年第四季相比，我們每個季度都在不斷獲得市場份額，在信用卡面板市場份額方面創下歷史新高。就我們的做法而言，您提到了定價，我想說優化我們的定價以最大化我們的利潤肯定是一回事。再說一次，我們並沒有真正改變價格會員。

I just want to quantify that, right, with those low low tens of basis points, but that's just the kind of an ongoing optimization we do on the demand elasticity to maximize our position there. But that's just one of many things. So we talked about pricing, but for is that we could talk about improvements. We've made the other logistics network, but for example, which on a prior calls, we talked about consolidated delivery, which is right now live in Houston, Las Vegas.

我只是想用那些低低的數十個基點來量化這一點，但這只是我們對需求彈性進行的持續優化，以最大化我們在那裡的地位。但這只是眾多事情之一。所以我們討論了定價，但我們可以討論改進。我們已經建立了其他物流網絡，例如，在先前的電話中，我們談到了整合交付，目前位於拉斯維加斯的休士頓。

We're rolling that out nationally or was that a whole series of kind of logistics features and functionality that increases speed increases, customer service levels that grows the business or on our website or asked will the car side forefront experience? You know, that's a team that I had spent a lot of the last couple of years working on replatforming, big pieces of the technology. But as we've done that now, the Zilver boss is much faster.

我們正在全國範圍內推廣，或者是一系列物流特性和功能，可以提高速度、提高業務的客戶服務水平，或者在我們的網站上或詢問汽車方面是否會提供前沿體驗？你知道，在過去的幾年裡，我花了很多時間在這個團隊上進行平台重構和重大技術的工作。但正如我們現在所做的那樣，Zilver Boss 的速度要快得多。

The feature function we can roll out and optimize is back to a very high rate that we're seeing gains from that. So the way we can kind of taking market shares actually through a long list of things we can do it, prove the customer experience, drive up conversion, gain, customer reach, optimize, you know, the the outcomes were getting. And so when we look to 2025, we see a lot of ways to continue to grow market share regardless of whether the macro economy in this category is something that's getting better or not.

我們可以推出和優化的功能已恢復到非常高的速度，我們從中看到了收益。因此，我們實際上可以透過一長串我們可以做的事情來獲得市場份額，證明客戶體驗，提高轉換率，增益，客戶覆蓋率，優化，你知道，我們得到的結果。因此，當我們展望 2025 年時，我們看到有很多方法可以繼續增加市場份額，無論該類別的宏觀經濟是否有改善。

So we're not we're not counting on the we know it's a cyclical category. We know that the consumer discretionary durables are under a lot of pressure. Now that is where we play.

所以我們不指望我們知道這是一個週期性類別。我們知道，非必需耐用消費品面臨著很大的壓力。現在那就是我們玩的地方。

Despite that, we see a pretty pretty good outlook for how we're going to grow in the back and taking market share. And then for 2025 EBITDA as a way to think about the 25 EBITDA is what we said as we see 2025 EBITDA dollars being higher than 2024 EBITDA dollars. But you don't have market shares I just described.

儘管如此，我們對如何在後面成長並佔領市場份額看到了相當不錯的前景。然後，對於 2025 年 EBITDA，我們認為 25 EBITDA 是一種思考方式，因為我們看到 2025 年 EBITDA 美元高於 2024 年 EBITDA 美元。但你沒有我剛才描述的市場佔有率。

And it kind of been kind of scale our business that way, while we also continue to have a good cost roadmap. But as you've seen on the SOTG. and A. line, for example, yet on inventory at the numbers eight or nine quarters in a row, you see that come down in dollars. And that's just us being very smart about how we're spending money and that, you know, continue to find ways to optimize that. But I can't let me just turn it over the I just wanted to clarify, I think that we haven't given any 2025 guidance and we don't typically give annual guidance. But I know all we have said to 2025 is exactly 0%, which is we are focused on growing adjusted EBITDA dollars.

這在某種程度上擴大了我們的業務規模，同時我們也持續擁有良好的成本路線圖。但正如您在 SOTG 上看到的那樣。例如，A. 線，但在連續八個或九個季度的庫存中，您會發現以美元計算的庫存有所下降。這只是我們對如何花錢非常聰明，而且，你知道，繼續尋找優化方法。但我不能讓我把它翻過來，我只是想澄清一下，我認為我們沒有給出任何 2025 年的指導，而且我們通常不會給出年度指導。但我知道我們所說的到 2025 年只是 0%，也就是我們專注於成長調整後 EBITDA 美元。

And that continues to be on our focus and commitment and the convenience through the combination of the cost discipline that you've seen us execute on over the last few years and the investments that we're making now to grow revenue.

這仍然是我們的重點和承諾，以及透過結合過去幾年我們執行的成本紀律和我們現在為增加收入而進行的投資所帶來的便利。

And so that revenue growth, which we see coming on at multi-quarter basis on a positive trend from adjusted EBITDA dollars will have its village EBITDA dollars in combination with that cost discipline, your reference to have that showing up on that SG&A line.

因此，我們認為營收成長將在調整後的 EBITDA 美元的正面趨勢下在多個季度的基礎上實現，並將其鄉村 EBITDA 美元與成本紀律相結合，您可以參考將其顯示在 SG&A 行上。

I appreciate it. Thank you.

我很感激。謝謝。

Christopher Horvers, JPMorgan.

克里斯多福‧霍弗斯，摩根大通。

Thanks. Good morning. First question is, oh, you're in the fourth quarter revenue guide, you're assuming some modest slowdown in revenue growth and the balance of the quarter. I know par seemed a little bit here, but flat to low single digits quarter, Dave, versus down low low single digits. You also mentioned pre-election deferral. So can you bring that all together for us? Why when trend to get back, our consumers are slowing interaction and pushing holiday holiday sales later into the quarter.

謝謝。早安.第一個問題是，哦，您在第四季度的收入指南中，您假設收入成長和本季的餘額略有放緩。我知道標準桿在這裡似乎有點，但戴夫，與下降到低個位數季度持平至低個位數。您也提到了選舉前的延期。那麼你能為我們把這一切都整合起來嗎？為什麼當趨勢回歸時，我們的消費者正在放慢互動，並將假期銷售推到本季晚些時候。

Yes, Chris. So I think on that you've got to get the election coming up, you know that something that may or may not really be determined and kind of in the shorter and you have what's the challenging macro. So you have a bunch of uncertainty. So we feel very good about how we can continue to take share. But you're kind of looking forward to the quarter and you still have a lot of the revenue yet to come and we have some of these uncertainties you're trying to like fair. Where do you think you're going to be?

是的，克里斯。所以我認為你必須讓選舉即將到來，你知道有些事情可能會或可能不會真正確定，並且在較短的時間內你會面臨具有挑戰性的宏觀問題。所以你有很多不確定性。因此，我們對如何繼續分享份額感到非常滿意。但你對這個季度充滿期待，而且你仍然有很多收入尚未到來，而且我們有一些你想要公平對待的不確定性。你認為你會去哪裡？

And I guess how significant has the timing of it? Obviously Way Day, you purposely extended that earlier. But you know, do you think that how significant is that slowdown after the election versus maybe just a timing shift around having a longer way days?

我想它的時機有多重要？顯然，路日，你故意提前延長了這一天。但你知道，你認為選舉後的經濟放緩與可能只是時間更長的時間變化有多大關係嗎？

Yes. I mean, I think of a wait a week in hindsight, it we're pretty happy with that. We play that we didn't plan for three-day event. We've built some flexibility in how we did that. And then as we saw the calendar playing out with so much about a major retailer playing into the clinic today, sales and then right after Labor Day, we said to take advantage of the U.S. online shopping that was going to happen over that time. That's really maximized how we did. But I don't know that that dramatically affects, you know, when you get a week or two out from a health demand's going from. I think it's just it's just that the macro, it just makes it harder to predict it. And that's basically the biggest thing I would just say we look to the forthcoming holiday season and you're like, okay, how is this going to exactly play out? You've come out with a range of possibilities that all seems plausible.

是的。我的意思是，事後看來，我想等待一周，我們對此非常滿意。我們玩的是我們沒有計劃的為期三天的活動。我們在如何做到這一點上建立了一定的靈活性。然後，當我們看到日曆上有很多關於一家大型零售商今天進入診所、銷售以及勞動節之後的信息時，我們說要利用那段時間將要發生的美國在線購物。這確實最大限度地發揮了我們的作用。但我不知道這會嚴重影響，你知道，當你從健康需求中得到一兩週的時間。我認為這只是宏觀因素，它只是讓預測變得更加困難。這基本上是我想說的最重要的事情，我們展望即將到來的假期，你會想，好吧，這到底會如何發展？你已經提出了一系列看起來似乎都有道理的可能性。

Got it. That makes sense. And then on the on the operating margin forecast for the fourth quarter, UK, you talked about we're hitting our goal of mid single digits. You did 4.1% in the third quarter. About the same time, the midpoint of the fourth quarter guide is not mid single digits. So I guess to what extent does that sort of undermined the view of hitting that goal that you've sort of said you would get to when I have said that you've achieved that then as any of that just seasonality from a mix perspective versus timing of spending?

知道了。這是有道理的。然後，關於英國第四季的營業利潤率預測，您談到我們正在實現中個位數的目標。第三季的成長率為 4.1%。大約在同一時間，第四節指導的中點也不是中位數。因此，我想這在多大程度上破壞了實現您所說的目標的觀點，當我說過您已經實現了這一目標時，從混合角度來看，這些只是季節性與季節性因素的對比。支出的時機？

Yes, Chris, thanks for the question. I guess I guess the way I look at it is, obviously over the last two quarters, we've proven we can operate at that mid single digit rate. And we've shown, I think, very nice fit the plan to get to that point. What you heard with the Q1 guide is a little bit of incremental investment on that marketing. And you know, as a result, we stepped up that range a little bit. And then the net of that is that we think that that is going to drive incremental revenue and incremental adjusted EBITDA dollars over the next few quarters. So I want to be clear that the bottom of the funnel marketing spend is in place and we are quite disciplined and we have very good visibility, confident and the ability of that to drive both revenue and the adjusted EBITDA dollars. And that's really where we're driving.

是的，克里斯，謝謝你的提問。我想我的看法是，顯然在過去兩個季度，我們已經證明我們可以以中等個位數的速度運作。我認為，我們已經表明，非常適合實現這一目標的計劃。您從第一季指南中聽到的是對行銷的一點增量投資。你知道，結果我們稍微提高了這個範圍。我們認為這將在未來幾季推動收入增量和調整後 EBITDA 增量。因此，我想明確的是，漏斗行銷支出的底部已經到位，我們非常有紀律，我們有很好的可見性、信心以及推動收入和調整後 EBITDA 美元的能力。這就是我們真正要努力的方向。

Thanks very much.

非常感謝。

Thanks, Chris.

謝謝，克里斯。

Peter Keith, Piper Sandler.

彼得·基思，派珀·桑德勒。

Thanks. Good morning, everyone. Sticking on some of the advertising and election dynamic. So you're highlighting the elevated ad spend from the stepped-up influencer marketing thing, but we're also hearing that your average are very high right now around the election season of. So how do you think about the ad spend going forward? Do you think the overall costs are going to come down as we get it and further into November, December and going forward?

謝謝。大家早安。堅持一些廣告和選舉動態。因此，您強調了影響力行銷的加強所帶來的廣告支出的增加，但我們也聽說您的平均廣告支出目前在選舉季期間非常高。那麼您如何看待未來的廣告支出呢？您認為當我們得到它並進一步進入 11 月、12 月以及未來時，總體成本會下降嗎？

Yes. Thanks, Peter. So the way to think that as certain parts of the ad market will definitely have elevated rates pre-election. So think about this as like a local television and think of this is some of the upper funnel channels, which you could use for any variety of messaging. And we've just to remind you, we're very quantitative and we spend the money. So in other words, we won't chase that spend. So it's not economic. Someone else can buy that medium. And of course, if it becomes economic again makes sense to us, we would buy that medium. And so that's sort of one thing that figure that is like. What do you think about influencers or separately were much lower funnel payback channels, those are channels that are very narrow and specific to different types of advertising. And so those are ones where you'd find political ads. And so that's sort of a different segment of the advertising market. But I think the main thing to just to kind of keep in mind is that we're just very quantitative and what we're talking about this ad spend. So we're not we don't really perceive if anything, that's not economic. And yes, those channels like local television do get much cheaper after the after the election, but we don't really do that much in local television, for example.

是的。謝謝，彼得。因此，我們可以認為廣告市場的某些部分在選舉前肯定會提高利率。因此，可以將其視為本地電視台，並將其視為一些上層漏斗頻道，您可以將其用於任何類型的消息傳遞。我們只是提醒您，我們非常注重量化，而且我們花錢。換句話說，我們不會追逐這筆支出。所以這不經濟。其他人可以購買該媒介。當然，如果它再次變得經濟對我們有意義，我們就會購買這種媒介。這就是這樣的一件事。您如何看待影響者或單獨較低的漏斗回報管道，這些管道非常狹窄且特定於不同類型的廣告。因此，您會在這些廣告中找到政治廣告。這就是廣告市場的不同部分。但我認為要記住的主要一點是，我們只是非常量化以及我們正在談論的廣告支出。所以我們並沒有真正意識到，如果有的話，那是不經濟的。是的，像地方電視台這樣的頻道在選舉後確實會便宜得多，但例如，我們在地方電視台並沒有真正做那麼多。

Okay. That's helpful. And then I just have a question for you is just on the Wayfair rewards. So decided to have a loyalty program out there, but I am recalling it was six or seven years ago. You did have a loyalty program called My Way, which is ultimately to expand into maybe just talk about the learnings from my way day in and what's different this time that that ultimately might make this new local programs to.

好的。這很有幫助。然後我想問你一個關於 Wayfair 獎勵的問題。所以決定推出一個忠誠度計劃，但我記得那是六、七年前的事了。你們確實有一個名為「我的方式」的忠誠度計劃，該計劃最終可能會擴展為也許只是談論我每天的學習方式以及這次的不同之處，這最終可能會使這個新的本地計劃成為可能。

Yes. So I think our biggest learning from my wave was that the kind of customer value proposition that we had associated with the program. It just wasn't that strong. Now in contrast to think about what we're often in wafer rewards, what I talked about on the call already using what that average customer 600, either 105% back that traunches customers will be basically breakeven on the program right off the bat off their annual spend. They pick up those other benefits to members on the call service line, really accesses sale that. But obviously, the way it works is if you're getting rewards dollars every time you make a purchase, you have a balanced you could use against their next purchase. And that customers really spending a few thousand dollars in home today spread across many, many retailers. So you think about that next keynote to $3,000 that they're not spending with Wayfair, what they can spend some of that with us, programs have some cost for them and they are going to get rewards on that incremental spend. And so it had some of the basic engineering you want in a program that makes it very obvious and easy for the customer to change kind of where they choose to drive their spend. And then there's a bunch of other benefits side of the program that you say are not economic, but they could be, you know, excite the consumer. So I think we've got a very good setup. And I don't think in hindsight recently, the traction we won with that wafer awards as new red. It's only been out there for you and I'll go, you know, a couple of weeks, but we're happy with the started to get.

是的。所以我認為我們從這次浪潮中學到的最大的教訓是我們與該計劃相關的客戶價值主張。只是沒那麼強而已。現在，與考慮我們在晶圓獎勵中經常使用的內容相反，我在電話中談到的已經使用了普通客戶600 的內容，或者105% 的回報，客戶將基本上在該計劃上立即實現盈虧平衡。他們透過呼叫服務熱線為會員提供其他好處，真正獲得銷售。但顯然，它的運作方式是，如果您每次購買時都能獲得獎勵美元，那麼您就有餘額可以用於他們的下一次購買。如今，真正在家中花費數千美元的顧客分佈在許多零售商中。所以你想想下一個主題演講，他們不會在 Wayfair 上花費 3,000 美元，他們可以在我們這裡花費一些，項目對他們來說有一些成本，他們將從增量支出中獲得獎勵。因此，它具有您在程序中所需的一些基本工程，使客戶能夠非常明顯且輕鬆地改變他們選擇推動支出的方式。該計劃還有很多其他好處，您說這些好處並不經濟，但您知道，它們可能會讓消費者感到興奮。所以我認為我們已經有了一個非常好的設定。事後看來，我認為最近我們透過晶圓獎贏得的關注並沒有成為新的紅色。它只為你準備，我會去，你知道，幾週，但我們對開始感到滿意。

Yes, just to add, you know, you are here to speak on the call the value of loyal customers until you have a very good understanding of when one is increasingly loyal with us, the overall are alive and that drives customer lifetime value. Their incentive program is really design at driving incrementality.

是的，只是補充一點，您知道，您在這裡是為了在電話會議上談論忠誠客戶的價值，直到您很好地理解何時一個人對我們越來越忠誠，整體充滿活力並推動客戶終生價值。他們的激勵計劃實際上是為了推動增量而設計的。

Frontal felt, hey, we're getting a portion of their spend, but we know even beginning that third and fourth quarter and we tested the concept with customers need good reaction. And we're really excited about both how the customer perceives, the value prop and when it can do for us.

Frontal 覺得，嘿，我們得到了他們支出的一部分，但我們知道，即使從第三季和第四季開始，我們與客戶測試了這個概念，需要良好的反應。我們對客戶的看法、價值支柱以及它何時能為我們帶來幫助感到非常興奮。

Very good. Thank you so much.

非常好。太感謝了。

Simeon Gutman, Morgan Stanley.

西蒙古特曼，摩根士丹利。

Hi, good morning, everyone. A couple of questions. First, on the categories, home furnishings, if turnover housing turnover picks up, I think the category would rebound. If it doesn't curious what you think about pent-up demand to draw. Is that going to drive some life in the category where you think we are in that continuum?

嗨，大家早安。有幾個問題。首先，就家居品類而言，如果成交量回升，我認為該品類會出現反彈。如果它不好奇你對被壓抑的繪圖需求有何看法。這是否會推動您認為我們處於連續統一體的類別中的一些活力？

Yes. So the big tenant phrasing it well in the sense that obviously of housing demand in the existing home sales picks up, that's obviously highly stimulative to the category. We are seeing signs that there is pent-up demand. But you know how much time these to elapse before that becomes Top of Mind enough to be stimulative on its own is less clear. I would say this is why you think about our strategy we've had for two years during which the market's gone down, what 25%, but we've basically been able to take signage market shares that we are doing far better than that.

是的。因此，大租戶的措辭很好，即現有房屋銷售中的住房需求顯然有所回升，這顯然對該類別有很大的刺激作用。我們看到有跡象表明需求被壓抑。但你知道，要經過多少時間，這些事情才能成為人們的首要考慮，足以起到刺激作用，目前還不清楚。我想說，這就是為什麼你會想到我們兩年來所採取的策略，在這兩年裡，市場下跌了 25%，但我們基本上能夠佔據標牌市場份額，而且我們做得比這要好得多。

I think our strategy is really not counting on a rebound in the category, but it's actually calling out the fact that use rough numbers of the category with whatever, little over $400 billion in North America. And now it's whatever, over $300 billion in North America, it's still 300 whatever plus billion of spend that's out there.

我認為我們的策略實際上並不是指望該類別的反彈，而是實際上指出了這樣一個事實：使用該類別的粗略數字，北美地區的銷售額略高於 4000 億美元。現在無論如何，北美的支出超過 3,000 億美元，但那裡的支出仍然是 300 多億美元。

And we think that there's a lot of argument of why we can take share very nicely with all the things we're doing. And it is kind of think about that being a long tail, very fragmented. And you're increasingly seeing players who are having a harder time being differentiated in the middle sort of losing share or going away. And you can see that from a disclosure that declining a lot better than a handful of most recently, what kind of got more going out of business. And so there's definitely things that are changing. And I think this is the real opportunity for us. Yes, of course, when the category turns, there's going to be a tremendous amount of growth to, but it's sort of like timing that I don't think it's very easy to do. And I don't think it's really pertinent with given the strategy we have.

我們認為，關於為什麼我們可以很好地分享我們正在做的所有事情，存在著許多爭論。這有點像一條長尾巴，非常支離破碎。而且你越來越多地看到那些在中間階段難以脫穎而出的玩家會失去市場份額或離開。你可以從披露的資訊中看到，比最近的少數幾家公司的下滑要好得多，什麼樣的公司會倒閉。所以肯定有一些事情正在改變。我認為這對我們來說是真正的機會。是的，當然，當品類發生轉變時，將會出現巨大的成長，但我認為這在時機上並不容易做到。我認為這與我們現有的戰略並不真正相關。

And then the follow up on the just the construct for 25, which I know once you give a construct, we're going to ask all sorts of questions. There's obviously a lot of room where you say EBITDA dollars north of 2020 for the question is you could let's say that's up a couple of hundred million dollars? Or are you going to lean in to market share to the point where you'll just a drive a modest outcome? And I'm not looking at dollars and how much it will be up year over year, but more on your posture of how much you want to lean in to take market share, just achieve that goal of growing them are actually taking market share in a more meaningful way. If that's the essence of the question.

然後是 25 的構造的後續，我知道一旦你給出一個構造，我們就會問各種各樣的問題。顯然，您所說的 2020 年以北的 EBITDA 美元還有很大的空間，因為問題是您可以說增加了數億美元嗎？還是你會依賴市場佔有率來獲得適度的成果？我不是看美元以及它會逐年上漲多少，而是更多地看你想在多大程度上爭取市場份額，只要實現增長的目標，實際上就是在佔據市場份額更有意義的方式。如果這就是問題的本質。

Yes, the only thing I'll say, and then I turn to take those that those are interrelated, meaning that the things you do to take market share, some of those do not have costs associated with it. That's not already sunk, meaning like for example, I had a storefront experience as a team of people we have on payroll. They're doing hard work every day, rolling out a lot of features that will have an outcome that Dr. Marcia, there's no incremental cost that you now going payroll as the costs there. There's other things you do like if you're talking about advertising or the other costs associated with revenue. But what we're saying is we're going to do the costs associated with profit dollars that it generates. So those who have a very direct relationship, they're not unrelated. But let me turn it over to Keith for any clarification.

是的，我要說的唯一一件事是，然後我轉向那些相互關聯的事情，這意味著你為獲取市場份額所做的事情，其中​​一些沒有與之相關的成本。這還沒有沉沒，這意味著，例如，我作為我們工資單上的一個團隊有過一次店面體驗。他們每天都在努力工作，推出了許多功能，這些功能將帶來瑪西婭博士的成果，你現在的薪資單上沒有增量成本。如果您談論的是廣告或與收入相關的其他成本，那麼您也喜歡其他事情。但我們要說的是，我們將承擔與其產生的利潤相關的成本。所以那些有非常直接關係的人，他們並不是沒有關係。但讓我把它交給基斯來澄清。

If anything, I would just reiterate, we are very focused on driving both top and bottom line, and we believe we can do things in concert with each other. And we have a high degree of conviction around that. Still what you're hearing us say there are select places where we have made investments in our making investments. Obviously, last quarter, we started to talk about that in the gross margin line itself that showed up this quarter. We talked a little bit about the marketing spend. We are doing these things because we think that they drive incremental order growth and revenue capture and ultimately that drives that adjusted EBITDA dollars well, and we can do that. We'll continue to be quite disciplined on the cost side and you see that pan out over the last few years as well. Emirates already mentioned that SOTG. and A. expense, we've taken that down nine quarters in a row on an LTM basis at down over 250 million. That's on top of the costing us that we took at the end of 22 and 23. So you're seeing really nice discipline there where we can manage the fixed costs. And you're seeing and say, hey, there's some places where we think there are pockets of opportunity to invest to drive on a multi-quarter basis revenue gross profit dollars and ultimately adjusted EBITDA.

如果有什麼不同的話，我想重申一下，我們非常專注於推動營收和利潤，並且我們相信我們可以彼此協調一致地開展工作。我們對此充滿信心。仍然如您所聽到的，我們在某些​​特定的地方進行了投資。顯然，上個季度，我們開始討論本季出現的毛利率本身。我們討論了一些關於行銷支出的問題。我們正在做這些事情，因為我們認為它們可以推動增量訂單成長和收入獲取，並最終很好地推動調整後的 EBITDA 美元，我們可以做到這一點。我們將繼續在成本方面保持嚴格的紀律，你會看到這在過去幾年中也取得了成功。阿聯酋航空已經提到 SOTG。 A. 費用，我們已經連續九個季度按 LTM 減少了超過 2.5 億。這是我們在 22 月和 23 月底計算的成本之上的。你會看到並說，嘿，我們認為在某些地方有一些投資機會，可以推動多季度收入毛利和最終調整的 EBITDA。

Okay. Thank you. Good luck.

好的。謝謝。祝你好運。

Brian Nagel, Oppenheimer.

布萊恩·內格爾，奧本海默。

Good morning. So I have a couple of questions. My first question on market share and also I know this has been a big topic. You've highlighted consistently the numbers show that you're clearly wafer really tough environment taking market share broadly for the question I have is if you look at that data, you have moved closer. Is there any indication that some of these more mass merchant, more value-oriented retailers are sites that are performing well in this environment where they actually you have the more difficult time taking market share there? Are they potentially take market share back from Wayfair?

早安.所以我有幾個問題。我的第一個問題是關於市場佔有率的，我也知道這是一個很大的話題。您一直強調，這些數字表明，您顯然在非常艱難的環境中廣泛佔據市場份額，因為我的問題是，如果您查看這些數據，您已經更接近了。是否有任何跡象表明，一些更大規模、更注重價值的零售商是在這種環境中表現良好的網站，而實際上他們很難在那裡佔據市場份額？他們有可能從 Wayfair 手中奪回市場份額嗎？

Yes. Well, I guess to clarify what I would say. So it's a large and fragmented market. There's quite a few people losing share. But realistically, if it were not the only one winning share and so to other folks have highlighted, I think, have done a very good job also over the last few years. one is Amazon. Now they played at the kind of opening price point. Commodity items is really where they say. That's what they've done a good job.

是的。好吧，我想澄清一下我要說的話。所以這是一個龐大而分散的市場。有相當多的人失去了份額。但實際上，如果它不是唯一一個獲勝的份額，那麼對於其他人來說，我認為在過去幾年中也做得非常好。其中之一是亞馬遜。現在他們以開盤價格點進行比賽。商品確實是他們所說的那樣。這就是他們做得很好的事情。

And other one is home goods whose purely brick and mortar. And they really play and sort of the decorative accents, the core textile space, lower ticket items, but they've both been taking market share. So there's a handful of folks who are doing well, much longer list of folks who are not doing well, and that's kind of landscape. And so I wouldn't say it, we expect to be the only winner. But I think there's actually kind of only a handful of winners and quite a few folks who are on the other side.

另一種是純實體的家居用品。他們確實在裝飾性口音、核心紡織空間、低價商品方面發揮了作用，但他們都在佔據市場份額。因此，有少數人做得很好，但有更多人做得不好，這就是景觀。所以我不會這麼說，我們希望成為唯一的贏家。但我認為實際上只有少數勝利者和相當多的人站在另一邊。

So it's helpful marriage. And then my second question, I can't find more for you, but we all look again, you've got a great job of taking your cost infrastructure down controlling costs, but the sales top line weakness could go. But as we look into 2025 on skilled at the top line, there is still somewhat of a wildcard. But I guess the quick, if you look at your cost infrastructure, how much incremental opportunity used it would take costs down further, philosophically, if sales were to stay weaker? Or are you looking to take more cost down towards or you have point start to prepare for the eventual recovery in sales and kind of keep the cost infrastructure in place?

所以說，婚姻是有幫助的。然後是我的第二個問題，我無法為您找到更多信息，但我們都再看一遍，您在降低成本基礎設施和控製成本方面做得很好，但銷售收入的疲軟可能會消失。但當我們展望 2025 年的技術頂線時，仍存在某種不確定性。但我想，如果你看看你的成本基礎設施，如果銷售繼續疲軟，從哲學上講，使用多少增量機會會進一步降低成本？或者您希望降低更多成本，或者您已經開始為銷售的最終復甦做好準備並保持成本基礎設施到位？

Yes. Great question. So and so first, let me just start with how we look at the cost efficiency and cost opportunity. And you've seen us focus in that sort of up and down the P&L on on cost, obviously, in a place where you see that continuing to show up is on OpEx expense at the TG. and A. of the involved and the night discipline, for example, on the CapEx expense and as we're driving towards our sort of ultimate goal of growing adjusted EBITDA and are confident in where you've also seen nice gains from a cost control perspective, you're seeing that sort of combination of those three continuing to improve. So as we look at it, we do see ongoing opportunities for efficiency. You've seen us do those restructurings in the past, and you've seen ongoing taking on a quarterly basis on an SITG. and A. line.

是的。很好的問題。首先，讓我先談談我們如何看待成本效率和成本機會。您已經看到我們重點關注成本上的損益表上下變化，顯然，您會看到繼續出現在 TG 的營運支出費用上。 A. 所涉及的內容和夜間紀律，例如，在資本支出方面，我們正在努力實現增長調整後 EBITDA 的最終目標，並且對您也從成本控制中看到的良好收益充滿信心從角度來看，你會看到這三者的結合不斷在改進。因此，當我們審視它時，我們確實看到了持續提高效率的機會。您已經看到我們過去進行過這些重組，並且您已經看到了 SITG 每季度持續進行的重組。和A.線。

And as a reminder, that line is not just labor, right, that labor, but it's also at any is our I know it's an overhead and software and that you're seeing us be really disciplined in all of these pockets well as CapEx, at least compensation, et cetera. So we look at it, yes, we see ongoing places for tightening and places to be quite thoughtful. And as we think about 25, again, what I will say and reiterated, we are very focused on growing that adjusted EBITDA dollars, and we intend to balance things appropriately to continue to drive that. And that in combination with CapEx, the equity-based compensation for that adjusted EBITDA, less CapEx, less equity based compensation continues to improve.

提醒一下，這條線不僅僅是勞動力，對吧，勞動力，但它也是我們的，我知道這是管理費用和軟體，你會看到我們在所有這些方面以及資本支出方面都非常有紀律，至少賠償等等。所以我們看看它，是的，我們看到了持續收緊的地方和需要深思熟慮的地方。當我們考慮 25 時，我將再次重申，我們非常專注於增加調整後的 EBITDA 美元，並且我們打算適當地平衡一切，以繼續推動這一目標。與資本支出結合，調整後的 EBITDA 的基於股權的薪酬，減去資本支出，減去基於股權的薪酬，繼續改善。

So it's very helpful. I appreciate it. Thank you.

所以這非常有幫助。我很感激。謝謝。

Curtis Nagle, Bank of America.

柯蒂斯‧內格爾，美國銀行。

Through an aggressive. So very much for taking the question. I guess the first one, just on the area of the came in above expectations, but appointed to the higher personal assistance press for small versus large ticket items. So just curious what drove the better expected and no fire sales is in 3Q?

透過侵略性。非常願意回答這個問題。我想第一個，就在超出預期的領域，但被指定為小件與大件物品的高級個人協助新聞。那麼只是好奇是什麼推動了更好的預期並且第三季沒有減價銷售？

Yes. So I think the way to think about the AOV is really an output metric, right? So you're thinking about our business. We're doing a lot, for example, to sell lower ticket items. We talk about like the frequency agenda and what we're doing with housewares items, decorative accents and and one of the benefits and wafer rewards, for example, free shipping on every order that will decrease sales. But then we have a luxury plus and Perrigo that's actually growing at a very nice rate and say, oh, that's going to increase ALD.

是的。所以我認為考慮 AOV 的方法實際上是一個輸出指標，對嗎？所以您正在考慮我們的業務。例如，我們正在做很多事情來銷售低價商品。我們談論頻率議程，以及我們對家庭用品、裝飾性口音所做的事情，以及福利和晶圓獎勵之一，例如，每筆訂單免費送貨，這會減少銷售額。但我們有一個奢侈品牌和 Perrigo，它實際上以非常好的速度成長，並說，哦，這會增加 ALD。

And so we're doing a whole variety of things that our real goal is to grow the dollars per customer per year. So the way we think about getting market shares, I think about market share is more customers and those customers spending more with us. And outcome of that is obviously a number of orders. Times they'll be is the revenue. But again, because our strategy is not around low ticket orders are high ticket orders. Aov is an outcome metric of the combination of things we do. And so as they AOVs kind of like a permanent cuts.

因此，我們正在做各種各樣的事情，我們的真正目標是每年增加每個客戶的收入。因此，我們考慮獲得市場份額的方式，我認為市場份額是更多的客戶以及這些客戶在我們這裡花費更多。其結果顯然是許多訂單。他們的時間就是收入。但同樣，因為我們的策略不是圍繞低票訂單而是高票訂單。 Aov 是我們所做的事情組合的結果指標。因此，它們的 AOV 有點像是永久性的削減。

But when you're talking about inflation of like-for-like items or deflation of like-for-like items being now your second Quintiles price for beds, you know, is that moving. But that's not really what's happening right now in all that inflation with COVID and the ocean freight rates. And then there was a deal cycle deflation of that coming back out. That's all behind us right now. And so the sale of these more for these moves are more output metric of the seasonality and us executing the business and all the dimensions we talked about.

但是，當您談論同類商品的通貨膨脹或同類商品的通貨緊縮現在成為床具的第二個五分位數價格時，您知道，這是令人感動的。但目前新冠肺炎導致的通膨和海運費率的實際情況並非如此。然後又出現了交易週期緊縮。現在這一切都已經過去了。因此，這些措施的銷售更多是季節性的產出指標，也是我們執行業務以及我們討論的所有維度的指標。

Okay. Got it. Then just a lot of question on tariffs. Yes. I mean, if I could just kind of how we should think about the framework that we were to go to 50 or 60%. I think last spoken, it was a while ago China exposure about 50% of sales in terms of kind of implications on revenue and margins, how the Xerox rather than in person as part of probably harder portions capacity to move right out of China might be lower. So just kind of tissue all that together. And then maybe an update on what your exposure is at the moment will do very helpful.

好的。知道了。然後就是很多關於關稅的問題。是的。我的意思是，如果我能想我們應該如何思考我們要達到 50% 或 60% 的框架。我認為最後所說的，不久前，就收入和利潤率的影響而言，中國的銷售額約佔銷售額的50％，施樂公司而不是親自作為可能更難的部分的一部分，將其移出中國的能力可能會如何？所以只是將所有這些組織在一起。也許更新你目前的暴露情況會非常有幫助。

Great nears. Let me let me give some coughing. There's no imperative for you. This is Steve. So yes, we tariffs or something we've certainly seen over the history. This business and you've seen anti-dumping and we've seen territory certainly could have an impact. So I would say, you know, I'm alongside running a marketplace. And so um, we really have selection across a broad spectrum suppliers. And that allows our customers to see a lot of options for products that are having swap and different things until we're able to sort of move demand around come in that regard. We clearly have some practice, no navigating tariffs. And so I think when we look out in the future and certainly it's uncertain exactly how that might play out. We feel much better about the playbook we will run in the approach. We will take them to help consumers, you know, buffer, whatever price increases MEC selectively in certain imported products. The other side of is our suppliers are obviously more directly impact the dividend we are. And so they've been working over the last year or two here to just to modify their businesses and if they don't have single source problem as quite as much as they have in the past. And so I think the combination of all as we think will offer this as best we can and some and I shouldn't say it should be very navigable.

偉大的臨近。讓我咳嗽一下。對你來說沒有必要。這是史蒂夫。所以，是的，我們徵收關稅或我們在歷史上肯定看到的事情。這項業務以及您已經看到的反傾銷，我們也看到了領土肯定會產生影響。所以我想說，你知道，我正在經營一個市場。所以嗯，我們確實有廣泛的供應商選擇。這使我們的客戶能夠看到許多具有交換和不同功能的產品選擇，直到我們能夠在這方面轉移需求。我們顯然有一些做法，沒有航行關稅。所以我認為，當我們展望未來時，當然不確定具體情況會如何發展。我們對我們將在該方法中運行的劇本感覺好多了。我們將利用它們來幫助消費者，你知道，緩衝 MEC 在某些進口產品中選擇性的任何價格上漲。另一方面是我們的供應商顯然更直接影響我們的股利。因此，他們在過去一兩年裡一直在這裡工作，只是為了修改他們的業務，如果他們沒有像過去那樣存在單一來源問題的話。因此，我認為我們認為所有這些的結合將盡我們所能提供這一點，我不應該說它應該非常容易導航。

Yes. The only thing I would mention though, to so in the five years, there is some, you know, anti-dumping. I think that happened and like I would say, in specific categories of wood, good certain factories from China, which happened years and years ago. But then really the notable things where the tariffs during the first Trump administration, we're going to have 10% and 25% will ever since that announcement for goods from China in our categories ever since than what you've really seen happen is there's been a lot of suppliers who built the manufacturing capabilities in Cambodia and Vietnam and Malaysia, Indonesia, other places so that they actually have more control over their future, should the tariff landscape change, you know, et cetera. So I would say that the industry we have now is much more cognizant of that risk than they were five years ago. And so what I think we have kind of a couple of benefits going for us was that the industry is definitely in a different position than it was five years ago.

是的。我唯一要提到的是，在這五年裡，有一些，你知道的，反傾銷。我認為這種情況發生了，就像我想說的那樣，在特定類別的木材中，來自中國的某些工廠是好幾年前發生的。但真正值得注意的是，川普第一屆政府期間的關稅，自從宣布對我們類別中的中國商品徵收 10% 和 25% 的關稅以來，你真正看到的情況是許多供應商在柬埔寨、越南、馬來西亞、印尼等地建立了製造能力，這樣，如果關稅格局發生變化，他們實際上可以更好地控制自己的未來，等等。所以我想說，我們現在的產業比五年前更認識到這種風險。因此，我認為我們有一些好處，那就是該行業的地位肯定與五年前不同。

The second is, as Steve mentioned, we have 20,000 plus suppliers and we have domestic suppliers. We have important parts of suppliers and it goes in Brazil. We will disclose in the goods in Eastern Europe. So we have suppliers that are quite different from one another. And so we have the benefit of how they compete on our platform for the customer. So yes, I think that you never know quite what is going to happen. But I would say that that's certainly a topic that folks have been thinking about doing things about.

第二個是，正如史蒂夫所提到的，我們有 20,000 多家供應商，而且我們有國內供應商。我們有重要的供應商零件，它銷往巴西。我們將在東歐的貨物中揭露。因此，我們的供應商彼此之間有很大不同。因此，我們可以從他們在我們的平台上為客戶競爭的方式中受益。所以是的，我認為你永遠不知道會發生什麼。但我想說，這肯定是人們一直在考慮採取行動的話題。

Okay, got it. Thank you.

好的，明白了。謝謝。

Colin Sebastian, Baird.

科林·塞巴斯蒂安，貝爾德。

Thanks, guys. Good morning. So I know there's a lot of focus here on the category challenges and efforts and pricing and advertising, but need to be sort of zoom out on broader e-commerce platform and technology trends. I mean, there's a lot of change happening around shopping tools and digital assistants and personalization within apps. And so I wonder how how important those initiatives are for Wayfair? And are you seeing any positive impact Sprouts and metrics like just time spent or discovery and browsing, even if those aren't converting it to sales in this environment?

謝謝，夥計們。早安.所以我知道這裡有很多注意力集中在品類挑戰、努力、定價和廣告上，但需要縮小更廣泛的電子商務平台和技術趨勢。我的意思是，購物工具、數位助理以及應用程式內的個人化正在發生很多變化。所以我想知道這些措施對 Wayfair 有多重要？您是否看到新芽和指標（例如花費的時間或發現和瀏覽）有任何正面影響，即使這些在這種環境中沒有將其轉化為銷售？

Thanks for the question. This is Steve again. Let me just kick this off. We have been doing a lot of things internally, actually, just this morning, I send out an internal sort of a pre earnings little video and I did it completed a I and I think it apart part of this, this we're all going through this learning curve together right now of how to best use these new tools. We certainly look at and say we don't adopt the best practices in the business. We're going to be in trouble.

謝謝你的提問。這又是史蒂夫。讓我開始吧。實際上，我們在內部做了很多事情，實際上，就在今天早上，我發出了一個內部的盈利前小視頻，我完成了它，我認為它是其中的一部分，我們都將繼續現在就一起透過這個學習曲線來了解如何最好地使用這些新工具。我們當然會審視並表示我們沒有採用業務中的最佳實踐。我們會遇到麻煩的。

And so it's on us to really push our teams to make sure they're using these new tools and experimenting and trying new things and pushing the cutting edge that we can be a leader and not be kind of at risk of the market changing around us without a doubt as cutting.

因此，我們有責任真正推動我們的團隊確保他們使用這些新工具並試驗和嘗試新事物，並推動我們成為領導者的前沿，而不是面臨周圍市場變化的風險毫無疑問是切割。

And so we have a number of initiatives internally that are that our summer, very tactical and some of our heavy in a very good direct efficiency paybacks, retender using them to improve process flows that they have today.

因此，我們在內部採取了許多舉措，這些舉措非常具有戰術性，並且我們的一些舉措具有非常好的直接效率回報，重新招標使用它們來改進他們今天的流程。

And then some are much more experimental where they're trying to go after things that could be disruptive in the future that could be very exciting for our customers are could could change the efficiency curve in different parts of our business in wealth, what you've seen like.

然後有些更具實驗性，他們試圖追求未來可能具有破壞性的事情，這對我們的客戶來說可能非常令人興奮，可能會改變我們財富業務不同部分的效率曲線，你會做什麼？類似的。

So we've been up, you know, large adopter of machine learning, data science to you for very long time is how we price the catalog. How would you sort of how we do plan personalization, Abhi, we've also been aggressive adapter there where we have a lot of use cases where you can kind of do things. And then you see that return very quickly. For example, we have a very large catalog, millions, billions, tens of millions of items. And so finding dimension inaccuracies in correcting them, auto tagging, lead merchandising, attributes of those are things that we've actually put into production there driving a lot of value add, you know, a very insignificant cost, you know, in similar early on on how we and our customer service agents to do to build take care of the customer, a good job.

因此，我們長期以來一直是機器學習、資料科學的主要採用者，這就是我們為目錄定價的方式。您認為我們如何規劃個人化，Abhi，我們也一直是積極的適配器，我們有很多用例，您可以在其中做一些事情。然後你會發現這種回報非常快。例如，我們有一個非常大的目錄，有數百萬、數十億、數千萬的項目。因此，在糾正它們時發現尺寸不准確，自動標記，引導銷售，這些屬性是我們實際上投入生產的東西，推動了大量的增值，你知道，一個非常微不足道的成本，你知道，在類似的早期講述我們和我們的客戶服務代理如何做好照顧客戶、做好工作。

We've been able to create tools there or for our software development teams and they kind of the copilot type products out there for increasing productivity of a coated. So there's a bunch of things. We've been aggressive Adeptra on the customer side. I think what you're also getting out of that could change our customers that shop and there. I think we actually do have some kind of pilots and proof of concepts of things that we're trying that we do have one that we're setting small amounts of traffic in, and it's actually shows really the amazing customer engagement. But it's still early. We are basically we're certainly does.

我們已經能夠在那裡或為我們的軟體開發團隊創建工具，他們是副駕駛型產品，可以提高塗層的生產率。所以有很多事情。我們在客戶方面一直積極進取的 Adeptra。我認為你從中得到的也可能會改變我們在那裡購物的顧客。我認為我們確實有某種試點項目和我們正在嘗試的概念證明，我們確實有一個設定少量流量的項目，它實際上顯示了令人驚嘆的客戶參與度。但現在還早。我們基本上是肯定的。

I think we're being prudent about how much we're investing. We're not overinvesting, but we're also not ignoring it. And I'd say we definitely are pretty happy with some of the progress we're making. And we're in a good position because it's a category we're not selling commodity goods. And I think the biggest challenge with agents or if you're a seller of commodity items, now you can have an agent and say, hey, I want to reorder business, Tony paper, towels. Additional P&L is more Dove soap bars. What that agent can basically figure out, hey, is it cheaper at Walmart Target, Amazon? Or does it make sense?

我認為我們對投資金額持謹慎態度。我們並沒有過度投資，但我們也沒有忽視它。我想說，我們對所取得的一些進展絕對感到非常滿意。我們處於有利地位，因為這是我們不銷售商品的類別。我認為代理商面臨的最大挑戰，或者如果您是商品賣家，現在您可以有一個代理商並說，嘿，我想重新訂購業務，托尼紙，毛巾。額外的損益是更多的多芬肥皂。那個代理人基本上可以弄清楚，嘿，沃爾瑪塔吉特、亞馬遜的東西便宜嗎？或者說有道理嗎？

So we're ordering and up from Wal-Mart automatically, Simon, for Walmart plus whatever execute that order. I don't care was kind of rental cardboard box shows up at my door, right? But if you're selling items center in our exclusive, there's a lot of consideration and how you pick the right item. There's a lot of fine distinction between different items. The agent role is going to be a little different. And I think there's things you can do to kind of enhance the customer experience, whether it's really engaging. But it's not, you know, I think the real challenges of your it more the commodity provider.

所以我們會自動從沃爾瑪訂購，西蒙，為沃爾瑪加上任何執行該訂單的東西。我不在乎出租的紙箱出現在我家門口，對嗎？但如果您在我們獨家銷售的商品中心，則需要考慮許多因素以及如何選擇合適的商品。不同的項目之間有很多細微的差別。代理人的角色會有所不同。我認為你可以採取一些措施來增強客戶體驗，無論它是否真的有吸引力。但我認為，真正的挑戰並不是商品提供者。

Okay. Thanks, Niraj. Thanks, Steve.

好的。謝謝，尼拉吉。謝謝，史蒂夫。

Oliver Wintermantel, Evercore.

奧利佛·溫特曼特爾，Evercore。

Thanks, guys. Kate, I think you mentioned you're looking forward to a healthy free cash flow generation to fourth quarter. Maybe Ken, can you confirm that free cash flow that you guys expect free cash flow to be positive this year? And then maybe a capital allocation into next year. Maybe talk a little bit about how you want to invest and what what is driving CapEx next year we have sale up.

謝謝，夥計們。凱特，我想您提到您期待在第四季度產生健康的自由現金流。也許肯，你能確認一下你們預計今年自由現金流為正的自由現金流嗎？然後可能會在明年進行資本配置。也許可以談談您想如何投資以及推動明年我們出售的資本支出的因素是什麼。

So I do that. So just first relative to that fourth quarter, we do typically see positive free cash flow in the fourth quarter. As a reminder, part of that, the working capital dynamic rated seasonally the fourth quarter is typically a bigger revenue quarter than the third quarter. And that in combination with our ongoing density playing around adjusted EBITDA growth and CapEx should drive nice free cash flow in the fourth quarter.

所以我就這麼做了。因此，首先相對於第四季度，我們通常會看到第四季度的自由現金流為正。提醒一下，其中一部分是，第四季季節性的營運資本動態通常是比第三季更大的營收季。再加上我們圍繞調整後的 EBITDA 成長和資本支出持續進行的密度調整，應該會在第四季度推動良好的自由現金流。

Obviously, we haven't given any 2025 guidance on that. As we think about CapEx, I sort of look at what we've done over the past year and what you've seen is ongoing discipline on that line as well. There are really to sort of components to CapEx that we break out here. one is I can't speculate, but our P. on anything that continue to come in quite nicely and has been very thoughtful and disciplined on our team and our structuring. And then the other is that PP&E line. And within that PP&E line is the investment in our logistic network and the investment in physical retail. And what we've spoken about there is in the logistic network, we're very pleased with where the network is today. So we're not in a growth mode on that network and there are some maintenance CapEx there, but it's really not about expansion. We have ample capacity for the growth that you intend to have.

顯然，我們尚未就此給予任何 2025 年指引。當我們考慮資本支出時，我會回顧我們在過去一年中所做的事情，以及您所看到的在這方面的持續紀律。我們在這裡列出的資本支出確實有很多組成部分。一是我無法推測，但我們的 P. 在任何事情上都繼續表現得很好，並且對我們的團隊和結構非常周到和嚴格。另一個是 PP&E 生產線。 PP&E 系列包括對我們的物流網絡的投資和對實體零售的投資。我們談到的是物流網絡，我們對網路今天的狀況非常滿意。因此，我們在該網路上並未處於成長模式，並且存在一些維護資本支出，但這實際上與擴展無關。我們有足夠的能力實現您想要的成長。

And then on that on physical retail side, I know what we've also said there is we're excited about that opportunity. We're obviously quite pleased with the results from that first large one that store that opened in the spring, but we intend to be very disciplined about the rollout there until you should overall, you know, you've seen us throughout this year remaining CapEx nicely from last year as we maintain that expense discipline and rigor up and down the P&L.

然後在實體零售方面，我知道我們也說過我們對這個機會感到興奮。顯然，我們對春季開業的第一家大型商店的結果感到非常滿意，但我們打算對那裡的推出非常嚴格，直到您總體上，您知道，您今年全年都看到了我們資本支出與去年相比表現良好，因為我們在損益表上保持了費用紀律和嚴格。

Got it. Thanks. And then maybe on international, looks like that a nice improvement in EBITDA versus the first half of the year on your comment about next year's EBITDA dollars to be positive for 2020 for how much of that is international improvement?

知道了。謝謝。然後，也許在國際方面，根據您對明年 EBITDA 美元對 2020 年的積極評論，與上半年相比，EBITDA 看起來有不錯的改善，其中有多少是國際改善？

Yes. So I'll just make a quick comment and turn it over to Kate through the details of. But I'm I think what you're seeing over time, there's a lot of the work we did over two years have really kind of streamlining our cost structure, focusing on the key things for each business line that we think are important to drive them forward. And then as time plays out, you know, we're seeing the business. We're pretty happy with the progress we're making on the key drivers in each line of business that we want to see progress on that really allowed to give guidance or nobody has a vision because --

是的。因此，我將快速發表評論，然後將詳細資訊轉交給凱特。但我認為隨著時間的推移，您會看到，我們在兩年多的時間裡所做的許多工作確實簡化了我們的成本結構，專注於我們認為對推動重要的每個業務線的關鍵事情他們前進。然後隨著時間的推移，你知道，我們正在看到生意。我們對每個業務領域的關鍵驅動因素所取得的進展感到非常滿意，我們希望看到在真正允許提供指導或沒有人有願景方面取得的進展，因為——

I'm also not going to give guidance, but there's not a big I reiterate when years that will hit as we thought about the cost discipline and the selective areas where we invest that across didn't write that not just specific to the U.S. And what we said it was we started some of the cost restructuring is that that would be sort of global in nature and how we look at that. And let me as we sort of think about what we're driving for the business. We're really focused on the business overall and what that looks like across we carry.

我也不打算提供指導，但我不會重申，當我們考慮成本紀律和我們投資的選擇性領域時，幾年後會發生什麼，並不僅僅針對美國我們所說的是，我們開始進行一些成本重組，這本質上是全球性的，以及我們如何看待這一點。讓我來思考一下我們正在為業務推動什麼。我們真正關注的是整體業務以及我們所開展的業務。

And in the interest of time, we will conclude our Q&A session here. I would like to hand back over to the Wayfair team for closing remarks.

由於時間關係，我們將在這裡結束我們的問答環節。我想請 Wayfair 團隊做結束語。

Yes, thanks. Thank you, everybody, for joining us today. As you can probably tell, we're pretty excited with where we are now with the business, the things that are rolling out and coming. And we're pretty we're pretty we really like the prospects we have is we're looking forward, I think thanks for your interest in Wayfair. I hope you have a great holiday season.

是的，謝謝。謝謝大家今天加入我們。正如您可能知道的那樣，我們對目前的業務狀況以及即將推出和即將推出的產品感到非常興奮。我們很漂亮，我們很漂亮，我們真的很喜歡我們所擁有的前景，我們正在期待，我想感謝您對 Wayfair 的興趣。我希望您有一個愉快的假期。

Thank you, all.

謝謝大家。

Thanks.

謝謝。

This concludes today's conference call. Enjoy the rest of your day. You may now disconnect.

今天的電話會議到此結束。享受你一天剩下的時間。您現在可以斷開連線。