Revenue, active customers and average order value were all up in Wayfair’s first financial report since its initial public offering in October. Wayfair also says it will launch a fleet of branded delivery vehicles in New York City this week.

Wayfair Inc., the online furniture and home-goods retailer, released its first financial report since its initial public offering of stock in October, and the news was good. Direct retail sales, primarily through the company’s five brands— Wayfair.com, Joss & Main, AllModern, DwellStudio and Birch Lane—rose 57.1% from the third quarter of 2013. Direct retail sales totaled $285.5 million up from $182.0 million in Q3 2013.

“We are very pleased with the third quarter results and Wayfair’s growth trajectory,” says Niraj Shah, Wayfair CEO, co-chairman and co-founder. We believe we are making the right investments today to drive long-term growth, and remain committed to both creating the best home goods shopping experience for our customers and to delivering long term value for our investors.”

Wayfair also announced on the conference call that it would launch a fleet of branded delivery vehicles in New York City this week. Its current home delivery partner will manage the fleet.

Wayfair has also put an emphasis on marketing and brand building, Shah said on the call. Currently, Wayfair sends out more than one million different iterations of its daily sales e-mail. That personalization boosted the open rate 15% in the first nine months of 2014, Shah said.

For the third quarter ended Sept. 30, Wayfair reported:         

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  • Revenue increased 41.7% to $336.2 million from 237.3 million in the third quarter of 2013. Total revenue also includes sales from partner channels such as Staples Inc., Wal-Mart Stores and Sears Holding Corp.
  • Gross profit increased 34.8% to $79.0 million from $58.6 million in the third quarter of 2013.
  • The number of direct retail active customers reached 2.9 million as of Sept. 30, 2014, an increase of 61.0% from Q3 2013.
  • Net revenue per active customer in the last 12 months grew to $342, an increase of 8.6% from Q3 2013 and 3.0% from Q2 2014.
  • Orders per customer in the last 12 months increased to 1.65 from 1.55 in Q3 2013. Wayfair measures orders per customer as the total number of orders in the past 12 months divided by the number of active customers.
  • 1.3 million orders were delivered in the third quarter of 2014, an increase of 48.6% year over year.

For the nine months ended Sept. 30, Wayfair reported:

  • Total revenue of $910.3 million, a 46.7% increase from $620.5 million for the same period the previous year.
  • Gross profit increased 38.6% to $212.7 million from $153.5 million in 2013.
  • The average order value for the first nine months of 2014 was $214, compared to $210 for the first nine months of 2013.
  • 3.5 million orders were delivered in the first nine months of 2014, an increase of 65.1% year over year.

Wayfair is No. 45 in the Internet Retailer Top 500 Guide.

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