Table of Contents
45
Quarterly Financial Metrics
The following tables set forth selected financial quarterly metrics and other financial and operations data for the eight
quarters ended December 31, 2018. The information for each of these quarters should be read in conjunction with our
consolidated financial statements and related notes included elsewhere in the Annual Report on Form 10-K. Historical results are
not necessarily indicative of the results to be expected in the future.
Three months ended
March 31,
2017
June 30,
2017
September 30,
2017
December 31,
2017
March 31,
2018
June 30,
2018
September 30,
2018
December 31,
2018
(in thousands, except Average Order Value and LTM Net Revenue Per Active Customer)
Consolidated Financial
Metrics
Net Revenue $ 960,825 $ 1,122,856 $ 1,198,198 $ 1,439,016 $ 1,404,269 $ 1,655,256 $ 1,705,645 $ 2,014,004
Adjusted EBITDA $ (20,896) $ (2,246) $ (22,672) $
(21,219
) $
(49,960
) $
(34,809
) $
(76,405
) $ (53,812)
Free Cash Flow $ (68,970) $ (27,225) $ (18,463) $ 1,413 $
(47,594
) $
(7,545
) $
(58,803
) $ (23,152)
Segment Financial Metrics
U.S. Direct Retail Net
Revenue $ 837,556 $ 976,673 $ 1,033,669 $ 1,227,507 $ 1,186,205 $ 1,397,009 $ 1,460,056 $ 1,708,705
U.S. Other Net Revenue $ 20,473 $ 20,395 $ 16,975 $ 19,809 $ 15,379 $ 14,335 $ 13,189 $ 18,192
U.S. Adjusted EBITDA $ 3,728 $ 20,425 $ 4,531 $ 7,204 $
(7,938
) $ 7,200 $
(26,036
) $ 7,725
International Direct Retail
Net Revenue $ 102,796 $ 125,788 $ 147,554 $ 191,700 $ 202,685 $ 243,912 $ 232,400 $ 287,107
International Adjusted
EBITDA $ (24,624) $ (22,671) $ (27,203) $
(28,423
) $
(42,022
) $
(42,009
) $
(50,369
) $ (61,537)
Direct Retail Financial and
Operating Metrics
Direct Retail Net Revenue $ 940,352 $ 1,102,461 $ 1,181,223 $ 1,419,207 $ 1,388,890 $ 1,640,921 $ 1,692,456 $ 1,995,812
Active Customers 8,855 9,547 10,250 10,990 11,795 12,792 13,860 15,155
LTM Net Revenue Per Active
Customer $ 394 $ 402 $ 408 $ 422 $ 432 $ 440 $ 443 $ 443
Orders Delivered 4,213 4,278 4,719 6,202 5,888 6,452 6,938 8,806
Average Order Value $ 223 $ 258 $ 250 $ 229 $ 236 $ 254 $ 244 $ 227
The following table reflects the reconciliation of net loss to Adjusted EBITDA for each of the periods indicated (in
thousands):
Three months ended
March 31,
2017
June 30,
2017
September 30,
2017
December 31,
2017
March 31,
2018
June 30,
2018
September 30,
2018
December 31,
2018
Net loss $ (56,539) $ (38,875) $ (76,429) $
(72,771
) $
(107,775
) $
(100,734
) $
(151,726
) $ (143,845)
Depreciation and
amortization (1) 20,352 19,323 22,913 24,432 25,962 28,920 32,544 36,116
Equity based compensation
and related taxes 14,958 15,983 19,598 22,087 27,147 31,610 36,317 41,341
Interest expense, net 299 1,550 2,008 5,576 5,407 5,796 7,066 10,291
Other (income) expense,
net (176) (451) 227
(358
)
(941
)
(666
)
(1,054
) 2,865
Provision for (benefit from)
income taxes 210 224 237
(185
) 240 265 448 1,084
Other (1) — — 8,774 — — — — (1,664)
Adjusted EBITDA
$ (20,896) $ (2,246) $ (22,672) $
(21,219
) $
(49,960
) $
(34,809
) $
(76,405
) $ (53,812)
(1) We recorded $9.6 million of one-time charges in the three months ended September 30, 2017 in "Selling, operations,
technology, general and administrative" in the unaudited consolidated and condensed statements of operations related to a
warehouse we vacated in July 2017. Of the $9.6 million charges, $8.8 million was included in "Other" and related primarily to the
excess of our estimated future remaining lease commitments through 2023 over our expected sublease income over the same
period, and $0.8 million was included in "Depreciation and amortization" related to accelerated depreciation of leasehold
improvements in the warehouse. In the three months ended December 31, 2018, we terminated the lease and recorded $1.7
million of a one-time gain related to the difference in the expected future net lease commitments and the actual costs incurred to