Wayfair (W) 10-Q 12 Aug 15 2015 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2015	Jul. 31, 2015
Entity Registrant Name	Wayfair Inc.
Entity Central Index Key	1,616,707
Document Type	10-Q
Document Period End Date	Jun. 30, 2015
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Filer Category	Non-accelerated Filer
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2,015
Class A common stock
Entity Common Stock, Shares Outstanding		43,277,468
Class B common stock
Entity Common Stock, Shares Outstanding		40,531,921

CONSOLIDATED AND CONDENSED BALA

CONSOLIDATED AND CONDENSED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Current assets
Cash and cash equivalents	$ 236,574	$ 355,859
Short-term investments	51,425	60,000
Accounts receivable, net of allowance of $3,230 and $2,545 at June 30, 2015 and December 31, 2014, respectively	7,064	5,949
Inventories	21,321	19,798
Prepaid expenses and other current assets	65,254	45,262
Total current assets	381,638	486,868
Property and equipment, net	76,367	60,639
Goodwill and intangible assets, net	5,872	6,478
Long-term investments	78,730
Other noncurrent assets	1,378	1,538
Total assets	543,985	555,523
Current liabilities
Accounts payable	148,447	147,873
Accrued expenses	42,341	42,335
Deferred revenue	39,919	26,784
Other current liabilities	21,743	15,600
Total current liabilities	252,450	232,592
Other liabilities	24,688	17,392
Total liabilities	$ 277,138	$ 249,984
Commitments and contingencies (Note 6)
Stockholders' equity:
Additional paid-in capital	$ 371,771	$ 363,944
Accumulated deficit	(104,592)	(58,122)
Accumulated other comprehensive loss	(416)	(366)
Total stockholders' equity	266,847	305,539
Total liabilities, and stockholders' equity	543,985	555,523
Class A common stock
Stockholders' equity:
Common stock	43	37
Class B common stock
Stockholders' equity:
Common stock	$ 41	$ 46

CONSOLIDATED AND CONDENSED BAL3

CONSOLIDATED AND CONDENSED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Accounts receivable allowance for doubtful accounts	$ 3,230	$ 2,545
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized	10,000,000	10,000,000
Preferred stock, shares issued	0	0
Class A common stock
Common stock, par value (in dollars per unit)	$ 0.001	$ 0.001
Common stock, shares authorized	500,000,000	500,000,000
Common stock, shares issued	42,973,798	37,002,874
Common stock, shares outstanding	42,973,798	37,002,874
Class B common stock
Common stock, par value (in dollars per unit)	$ 0.001	$ 0.001
Common stock, shares authorized	164,000,000	164,000,000
Common stock, shares issued	40,773,291	46,179,192
Common stock, shares outstanding	40,773,291	46,179,192

CONSOLIDATED AND CONDENSED STAT

CONSOLIDATED AND CONDENSED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
CONSOLIDATED AND CONDENSED STATEMENTS OF OPERATIONS
Net revenue	$ 491,752	$ 295,437	$ 916,123	$ 574,144
Cost of goods sold	370,951	226,983	692,487	440,483
Gross profit	120,801	68,454	223,636	133,661
Operating expenses:
Customer service and merchant fees	18,330	12,113	34,308	23,082
Advertising	61,539	42,511	119,538	86,715
Merchandising marketing and sales	23,814	13,260	47,048	28,431
Operations, technology, general and administrative	36,355	23,586	68,975	46,355
Amortization of acquired intangible assets	236	250	486	499
Total operating expenses	140,274	91,720	270,355	185,082
Loss from operations	(19,473)	(23,266)	(46,719)	(51,421)
Interest income, net	308	77	572	133
Other (expense) income, net	(96)	(184)	(204)	(96)
Loss before income taxes	(19,261)	(23,373)	(46,351)	(51,384)
Provision for income taxes	73	2	119	17
Net loss	(19,334)	(23,375)	(46,470)	(51,401)
Accretion of convertible redeemable preferred units		(4,605)		(11,755)
Net loss attributable to common stockholders	$ (19,334)	$ (27,980)	$ (46,470)	$ (63,156)
Net loss attributable to common Stockholders per share - basic and diluted	$ (0.23)	$ (0.69)	$ (0.56)	$ (1.55)
Weighted average common shares outstanding, basic and diluted	83,603	40,515	83,407	40,829

CONSOLIDATED AND CONDENSED STA5

CONSOLIDATED AND CONDENSED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
CONSOLIDATED AND CONDENSED STATEMENTS OF COMPREHENSIVE LOSS
Net loss	$ (19,334)	$ (23,375)	$ (46,470)	$ (51,401)
Other comprehensive loss:
Foreign currency translation adjustments	(192)	126	(48)	7
Net unrealized loss on available-for-sale investments	(48)		(2)
Comprehensive loss	$ (19,574)	$ (23,249)	$ (46,520)	$ (51,394)

CONSOLIDATED AND CONDENSED STA6

CONSOLIDATED AND CONDENSED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Cash flows from operating activities
Net loss	$ (46,470)	$ (51,401)
Adjustments to reconcile net loss to net cash used in operating activities
Depreciation and amortization	14,144	8,891
Equity based compensation	14,234	5,528
Other non-cash adjustments	749	119
Changes in operating assets and liabilities:
Accounts receivable	(1,199)	1,040
Inventories	(1,548)	(4,840)
Prepaid expenses and other current assets	(19,533)	(13,203)
Accounts payable and accrued expenses	2,438	(3,306)
Deferred revenue and other liabilities	30,583	19,487
Other assets	(147)	(2,086)
Net cash used in operating activities	(6,749)	(39,771)
Cash flows from investing activities
Purchase of short-term and long-term investments	(108,311)	(65,000)
Sale and maturities of short-term investments	37,000	50,002
Purchase of property and equipment	(25,204)	(24,331)
Site and software development costs	(8,426)	(6,148)
Other investing activities, net	302	(3,012)
Net cash used in investing activities	(104,639)	(48,489)
Cash flows from financing activities
Taxes paid related to net share settlement of equity awards	(7,837)
Net proceeds from exercise of stock options	272
Proceeds from issuance of Series B convertible redeemable preferred units		154,774
Repurchase of common units		(23,500)
Dividends paid to Series A convertible redeemable preferred		(15,000)
Repurchase of employee equity		(5,528)
Net cash (used in) provided by financing activities	(7,565)	110,746
Effect of exchange rate changes on cash and cash equivalents	(332)	6
Net (decrease) increase in cash and cash equivalents	(119,285)	22,492
Cash and cash equivalents
Beginning of period	355,859	65,289
End of period	236,574	87,781
Supplemental disclosure of non-cash investing activities
Purchase of property and equipment included in accounts payable and accrued expenses and in other liabilities	6,312	5,787
Construction costs capitalized under finance lease obligations	$ 165
Supplemental disclosure of non-cash financing activities
Accretion of preferred unit dividends		$ 11,755

Basis of Presentation

Basis of Presentation	6 Months Ended
	Jun. 30, 2015
Basis Of Presentation
Basis of Presentation	1. Basis of Presentation Wayfair Inc. (the “Company”) is an e-commerce business offering visually inspiring browsing, compelling merchandising, easy product discovery and attractive prices for over seven million products from over 7,000 suppliers across five distinct brands—Wayfair.com, Joss & Main, AllModern, DwellStudio, and Birch Lane. In addition to generating net revenue through Direct Retail sales, which includes all sales generated primarily through the Company’s websites, mobile optimized websites, and mobile applications (“sites”), net revenue is also generated through sites operated by third parties and through third party advertising distribution providers that pay the Company based on the number of advertisement related clicks, actions, or impressions for advertisements placed on the Company’s sites. The consolidated and condensed financial statements and other disclosures contained in this Quarterly Report on Form 10-Q are those of the Company. The Company was incorporated as a Delaware corporation on August 8, 2014. Prior to the effectiveness of the Company’s registration statement on Form S-1 related to its initial public offering (“IPO”) in October 2014, Wayfair LLC was the principal operating entity. In connection with the IPO of the Company, Wayfair LLC completed a corporate reorganization pursuant to which Wayfair LLC became a wholly-owned subsidiary of the Company, and the holders of equity interests in Wayfair LLC became stockholders of the Company. For additional information regarding the change in reporting entity, see Note 1, Basis of Presentation , in the Notes to Consolidated Financial Statements included in Part II, Item 8, Financial Statements and Supplementary Data , of the Company’s Annual Report on Form 10-K for the year ended December 31, 2014. The consolidated and condensed balance sheet data as of December 31, 2014 was derived from audited financial statements. The accompanying consolidated and condensed balance sheet as of June 30, 2015, the consolidated statements of operations, consolidated statements of comprehensive loss, and consolidated statements of cash flows for the periods ended June 30, 2015 and 2014 are unaudited. The unaudited interim financial statements have been prepared on the same basis as the audited consolidated financial statements and in the opinion of management, reflect all adjustments, consisting of only normal recurring adjustments, necessary for the fair statement of the Company’s financial position as of June 30, 2015 and statements of operations, comprehensive loss, and cash flows for the periods ended June 30, 2015 and 2014. The financial data and the other information disclosed in these notes to the consolidated and condensed financial statements related to these periods are unaudited. The consolidated and condensed statements of operations, comprehensive loss, and cash flows for the periods ended June 30, 2015 are not necessarily indicative of the results of operations and cash flows that may be expected for the year ending December 31, 2015, or for any other period.

Summary of Significant Accounti

Summary of Significant Accounting Policies	6 Months Ended
	Jun. 30, 2015
Summary of Significant Accounting Policies
Summary of Significant Accounting Policies	2. Summary of Significant Accounting Policies The Company has identified the significant accounting policies that are critical to understanding its business and results of operations. The Company believes that there have been no significant changes during the three and six months ended June 30, 2015 to the items disclosed in Note 2, Summary of Significant Accounting Policies , in the Notes to the Consolidated Financial Statements included in Part II, Item 8, Financial Statements and Supplementary Data , of the Company’s Annual Report on Form 10-K for the year ended December 31, 2014 other than those noted below. Marketable Securities The Company classifies its marketable securities as “available-for-sale” or “trading” securities. Available-for-sale securities are classified as short term investments and long-term investments on the consolidated and condensed balance sheets and are carried at fair value. Unrealized gains and losses on available-for-sale securities that are considered temporary are recorded, net of taxes, in the “Accumulated other comprehensive loss” caption of the Company’s consolidated and condensed balance sheets. Unrealized losses, excluding losses related to the credit rating of the security (credit losses), on available-for-sale securities that are considered other-than-temporary but relate to securities that the Company (i) does not intend to sell and (ii) will not be required to sell below cost are also recorded, net of taxes, in “Accumulated other comprehensive loss.” Further, the Company does not believe it will be required to sell such securities below cost. Therefore, the only other-than-temporary losses the Company records in “Other income, net” in its consolidated statements of operations are related to credit losses. As of June 30, 2015, the Company’s available-for-sale securities consisted of investment securities. The maturities of the Company’s long-term marketable securities generally range from one to three years.

Marketable Securities and Fair

Marketable Securities and Fair Value Measurements	6 Months Ended
	Jun. 30, 2015
Marketable Securities and Fair Value Measurements
Marketable securities and fair value measurements	3. Marketable Securities and Fair Value Measurements Marketable Securities As of June 30, 2015, all of the Company’s marketable securities were classified as available-for-sale and their estimated fair values were $90.2 million. The Company did not hold any available-for-sale securities at December 31, 2014. The following table presents details of the Company’s marketable securities as of June 30, 2015 (in thousands): June 30, 2015 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Short-term: Investment securities $ $ $ ) $ Long-term: Investment securities ) Total $ $ $ ) $ Fair Value Measurements The Company’s financial assets and liabilities are measured at fair value, which is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price). The three levels of inputs used to measure fair value are as follows: · Level 1 — Unadjusted quoted prices in active markets for identical assets or liabilities · Level 2 — Unadjusted quoted prices in active markets for similar assets or liabilities, unadjusted quoted prices for identical or similar assets or liabilities in markets that are not active, or inputs other than quoted prices that are observable or can be corroborated by observable market data for substantially the full-term of the asset or liability · Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the asset or liability The following tables set forth the fair value of the Company’s financial assets measured at fair value on a recurring basis as of June 30, 2015 and December 31, 2014 based on the three-tier value hierarchy (in thousands): June 30, 2015 Level 1 Level 2 Level 3 Total Cash equivalents: Money market funds $ $ — $ — $ Short-term investments: Certificates of deposit — — Investment securities — — Long-term: Investment securities — — Total $ $ $ — $ December 31, 2014 Level 1 Level 2 Level 3 Total Cash equivalents: Money market funds $ $ — $ — $ Short-term investments: Certificates of deposit — — Restricted cash: Money market funds — — Total $ $ — $ — $

Intangible Assets and Goodwill

Intangible Assets and Goodwill	6 Months Ended
	Jun. 30, 2015
Intangible Assets and Goodwill
Intangible Assets and Goodwill	4. Intangible Assets and Goodwill The following table summarizes intangible assets as of June 30, 2015 and December 31, 2014 (in thousands): Weighted-Average June 30, 2015 Amortization Period (Years) Gross Carrying Amount Accumulated Amortization Net Book Value Trademarks 5 $ $ ) $ Customer relationships 5 ) Non-compete agreements 3 - 5 ) Technology 5 ) Other intangibles 3 ) Domain names 5 ) Total $ $ ) $ Weighted-Average December 31, 2014 Amortization Period (Years) Gross Carrying Amount Accumulated Amortization Net Book Value Trademarks 5 $ $ ) $ Customer relationships 5 ) Non-compete agreements 3 - 5 ) Technology 5 ) Other intangibles 3 ) Domain names 5 ) Total $ $ ) $ Amortization expense related to intangible assets was $0.2 million and $0.3 million for the three months ended June 30, 2015 and 2014, respectively, and $0.5 million for the six months ended June 30, 2015 and 2014. The following table presents the changes in goodwill during the six months ended June 30, 2015 (in thousands): Net Book Value Goodwill as of December 31, 2014 $ Foreign currency exchange rate effect ) Goodwill as of June 30, 2015 $ In July 2015 the Company sold its Australian-based business in order to strategically focus its resources on its North America and Europe markets. As of June 30, 2015, the net carrying amounts of the goodwill and intangible assets of the Australian-based business were $1.6 million and $0.2 million, respectively. The proceeds from the sale exceeded the carrying value of the Australian-based business.

Property and Equipment, net

Property and Equipment, net	6 Months Ended
	Jun. 30, 2015
Property and Equipment, net
Property and Equipment, net	5. Property and Equipment, net The following table summarizes property and equipment, net as of June 30, 2015 and December 31, 2014 (in thousands): June 30, December 31, 2015 2014 Furniture and computer equipment $ $ Site and software development costs Leasehold improvements Construction in progress Less accumulated depreciation and amortization ) ) Property and equipment, net $ $ Property and equipment depreciation and amortization expense was $7.2 million and $4.4 million for the three months ended June 30, 2015 and 2014, respectively, and $13.7 million and $8.3 million for the six months ended June 30, 2015 and 2014, respectively.

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Jun. 30, 2015
Commitments and Contingencies
Commitments and Contingencies	6. Commitments and Contingencies Leases The Company leases office space under non-cancelable leases. These leases expire at various dates through 2024 and include discounted rental periods and fixed escalation clauses, which are amortized straight-line over the terms of the lease. Rent expense under operating leases was $4.6 million and $2.6 million in the three months ended June 30, 2015 and 2014, respectively, and $8.7 million and $6.1 million in the six months ended June 30, 2015 and 2014, respectively. The Company has issued letters of credit for approximately $3.3 million as security for these lease agreements as of June 30, 2015 and December 31, 2014. Collection of Sales or Other Similar Taxes Based on the location of the Company’s current operations, it collects and remits sales tax in Kentucky, Massachusetts, New York and Utah. The Company does not currently collect sales or other similar taxes for the sale of goods in states where no obligation to collect these taxes is required under applicable law. Several states have presented the Company with assessments, alleging that it is required to collect and remit sales or other similar taxes. The aggregate amount of claims from these states, not including taxes allegedly owed for periods subsequent to such assessments or interest and penalties after the date the Company last received such assessments, is approximately $12.7 million. The Company does not believe that it was obligated to collect and remit such taxes, and intends to vigorously defend its position. At this time, the Company believes a loss is not probable and therefore has not recorded a liability; however, no assurance can be given as to the outcome of these assessments. Legal Matters The Company is subject to legal proceedings and claims in the ordinary course of business. However, the Company is not currently aware of any legal proceedings or claims that it believes will have, individually or in the aggregate, a material adverse effect on the Company’s financial position, results of operations or cash flows.

Equity-Based Compensation

Equity-Based Compensation	6 Months Ended
	Jun. 30, 2015
Equity-Based Compensation
Equity-Based Compensation	7. Equity-Based Compensation In 2010 the Company established an equity incentive plan and in 2011, the plan was amended and restated as the Wayfair LLC Amended and Restated 2010 Common Unit Plan (the “2010 Plan”). The 2010 Plan was administered by the board of directors of Wayfair LLC and provided for the issuance of common option units, restricted common units (all common units), deferred units, which currently represent Class A or Class B common stock of the Company. In connection with the IPO and as described in Note 1, Basis of Presentation , the Company completed a corporate reorganization pursuant to which Wayfair LLC became a wholly-owned subsidiary of the Company, and the holders of equity interests in Wayfair LLC became stockholders of the Company. In addition, all of the outstanding common units and incentive units of Wayfair LLC were exchanged for shares of common stock or incentive units for common stock, and then were converted into shares of Class B common stock or incentive units for Class B common stock of the Company. Accordingly, common option units, restricted common units and deferred units were converted to stock options, restricted common stock and restricted stock units (“RSU”), respectively, and may be referred to as such in these notes to the consolidated and condensed financial statements. In connection with the IPO, the board of directors of the Company took over administration of the 2010 Plan and adopted the 2014 Incentive Award Plan (“2014 Plan”) to grant cash and equity incentive awards to eligible service providers in order to attract, motivate and retain the talent for which the Company competes. The 2014 Plan is administered by the board of directors of the Company with respect to awards to non-employee directors and by the compensation committee with respect to other participants and provides for the issuance of stock options, SARs, restricted stock, RSUs, performance shares, stock payments, cash payments, dividend awards and other incentives. The 2014 Plan authorizes up to 8,603,066 shares of Class A common stock to be issued, of which RSUs for 1,246,384 shares had been issued as of June 30, 2015. Shares or RSUs forfeited, withheld for minimum statutory tax obligations, and unexercised stock option lapses from the 2010 Plan are available for grants of awards under the 2014 Plan. All equity awards granted prior to the IPO were subject to two vesting triggers: a service period (typically five years) and a performance condition (a liquidity event in the form of either a change of control or an initial public offering, each as defined in the 2010 Plan). Employees were able to retain provisionally vested stock options and shares upon departure. The Company determined that a liquidity event was not probable until the closing of its IPO on October 7, 2014, and as such, no expense was recognized until that date. After the IPO, awards for employees still providing service will continue to vest over the remaining service period. Any future grants of awards are expected to vest over the service period. In April 2014, the Company completed a tender offer to repurchase provisionally vested (defined as service period completed) stock options and restricted common stock from certain employees at a price of $26.23 per share. A total of 202,757 shares of restricted common stock and 9,028 stock options were tendered for an aggregate of approximately $5.5 million in net cash after adjusting for the exercise prices associated with the stock options. This tender offer was accounted for as a modification resulting in a $5.5 million compensation charge when accepted by the employee. The Company recorded an expense of $5.5 million in the six months ended June 30, 2014. The following table presents activity relating to stock options under the 2010 Plan during the six months ended June 30, 2015: Shares Weighted- Average Exercise Price Weighted- Average Remaining Contractual Term (Years) Outstanding at December 31, 2014 $ Options exercised ) $ Options forfeited/cancelled ) $ Outstanding at June 30, 2015 $ Exercisable at June 30, 2015 $ Expected to vest as of June 30, 2015 $ Intrinsic value of stock options exercised was $2.8 million for the six months ended June 30, 2015. Aggregate intrinsic value of stock options outstanding and currently exercisable is $11.7 million and $11.4 million, respectively. Unrecognized equity based compensation expense related to stock options expected to vest is less than $0.1 million with a weighted average remaining vesting term of 0.3 years as of June 30, 2015. The following table presents activity relating to restricted common stock under the 2010 Plan during the six months ended June 30, 2015: Shares Weighted- Average Grant Date Fair Value Outstanding at December 31, 2014 $ Restricted stock vested ) $ Unvested at June 30, 2015 $ Expected to vest as of June 30, 2015 $ The intrinsic value of restricted common stock vested was $3.9 million for the six months ended June 30, 2015. Aggregate intrinsic value of restricted common stock unvested is $0.5 million as of June 30, 2015. Unrecognized equity based compensation expense related to restricted common stock expected to vest is less than $0.1 million with a weighted average remaining vesting term of 0.3 years as of June 30, 2015. The following table presents activity relating to RSUs under the 2010 and 2014 Plans during the six months ended June 30, 2015: Shares Weighted- Average Grant Date Fair Value Outstanding at December 31, 2014 $ RSUs granted $ RSUs vested ) $ RSUs forfeited/cancelled ) $ Outstanding at June 30, 2015 $ Expected to vest as of June 30, 2015 $ The intrinsic value of RSUs vested was $20.3 million for the six months ended June 30, 2015. Aggregate intrinsic value of RSUs outstanding is $182.2 million as of June 30, 2015. Unrecognized equity based compensation expense related to RSUs expected to vest is $52.3 million with a weighted average remaining vesting term of 1.7 years as of June 30, 2015.

Segment and Geographic Informat

Segment and Geographic Information	6 Months Ended
	Jun. 30, 2015
Segment and Geographic Information
Segment and Geographic Information	8. Segment and Geographic Information Operating segments are defined as components of an enterprise for which separate financial information is available that is evaluated on a regular basis by the Chief Operating Decision Maker (“CODM”) in deciding how to allocate resources to an individual segment and in assessing performance. The Company’s CODM is its Chief Executive Officer. The CODM reviews financial information presented on a consolidated basis for purposes of making operating decisions, allocating resources and evaluating financial performance. As a result, the Company identified that it has one operating and reportable segment. The following table presents the activity related to the Company’s net revenue from Direct Retail sales derived through the Company’s sites and Other sales derived through sites operated by third parties and fees from third-party advertising distribution providers (in thousands): Three months ended June 30, Six months ended June 30, 2015 2014 2015 2014 Net revenue Direct Retail $ $ $ $ Other Net revenue $ $ $ $ Revenue from external customers for each group of similar products and services are not reported to the CODM. Separate identification of this information for purposes of segment disclosure is impractical, as it is not readily available and the cost to develop it would be excessive. No individual country outside of the United States provided greater than 10% of total revenue. The following table presents revenue and long-lived assets by geographic area (in thousands): Three months ended June 30, Six months ended June 30, 2015 2014 2015 2014 Geographic net revenue: United States $ $ $ $ International Total $ $ $ $ June 30, December 31, 2015 2014 Geographic long-lived assets: United States $ $ International Total $ $

Income Taxes

Income Taxes	6 Months Ended
	Jun. 30, 2015
Income Taxes
Income Taxes	9. Income Taxes For the three and six months ended June 30, 2015, income tax expense of less than $0.1 million and $0.1 million was recorded, respectively. The income tax expense recorded in the three and months ended June 30, 2015 is primarily related to various foreign income tax assessments and to a lesser extent the amortization of goodwill for tax purposes for which there is no corresponding book deduction. During the three and six months ended June 30, 2014, the Company was operating as a limited liability company and was taxed as a partnership under the Internal Revenue Code, and accordingly, no provision for federal or state and local income taxes was made on income since the members were individually liable for federal and state and local income taxes on their share of the Company’s earnings. The Company recorded less than $0.1 million in the three and six months ended June 30, 2014 associated with various foreign income tax assessments. Deferred income taxes reflect the impact of temporary differences between the amounts of assets and liabilities for financial reporting purposes and such amounts as measured by tax laws. The Company has deferred tax assets related to its net operating loss carryforwards accumulated since its corporate reorganization in the fourth quarter of 2014 and related to net operating loss carryforwards of certain of its foreign subsidiaries. A valuation allowance against net deferred tax assets is required if, based upon the available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized. The Company reassesses the valuation allowance on a quarterly basis and has provided a valuation allowance for the full amount of its net deferred tax assets. The Company had gross unrecognized tax benefits of $0.2 million as of June 30, 2015 which remains unchanged from December 31, 2014. The Company’s policy is to recognize interest and penalties related to unrecognized tax benefits as a component of income tax expense. The Company believes that it is reasonably possible that its remaining unrecognized tax benefits may be recognized by the end of 2015 as a result of a lapse of the statute of limitations.

Stockholders' Equity

Stockholders' Equity	6 Months Ended
	Jun. 30, 2015
Stockholders' Equity
Stockholders' Equity	10. Stockholders’ Equity Corporate Reorganization On October 1, 2014, in anticipation of the IPO, the Company completed a corporate reorganization as described further in Note 1, Basis of Presentation . Pursuant to the corporate reorganization, Wayfair LLC became a wholly-owned subsidiary of the Company, and the holders of equity interests in Wayfair LLC became stockholders of the Company. The Company was incorporated as a Delaware corporation on August 8, 2014. In connection with this corporate reorganization, $306.2 million of accumulated deficit from Wayfair LLC was transferred to additional paid in capital of the Company. Series A and Series B Convertible Redeemable Preferred Units of Wayfair LLC In connection with the corporate reorganization all of the outstanding Series A and Series B preferred units of Wayfair LLC were exchanged for shares of Series A and Series B convertible preferred stock of the Company. Immediately prior to the completion of the IPO, all of the outstanding shares of Series A and Series B convertible preferred stock converted into 27,546,934 shares of Class B common stock of the Company. The Company recognized changes in the redemption value of the convertible redeemable preferred stock immediately as they occurred by adjusting the carrying amount of the redeemable security to what would be the redemption amount assuming the security was redeemable at the balance sheet date. Accordingly, the Company recorded accretion of the Series A convertible preferred stock of $14.4 million credit, $25.4 million, and $12.2 million for the years ended December 31, 2014 and 2013 and 2012, respectively. At the time of the conversion of Series A and Series B redeemable convertible preferred stock an adjustment of $14.8 million was recorded as a reduction of accretion expense when the carrying value of the convertible redeemable preferred units was reduced to its conversion value. The Company recorded accretion on the Series B redeemable convertible preferred stock of $2.5 million for the year ended December 31, 2014. Upon the issuance of Series B preferred units by Wayfair LLC in March 2014, the Company distributed $15.0 million in accrued dividends to Series A convertible preferred stock holders and, upon the completion of the IPO in October 2014, distributed the remaining accrued dividends of $24.5 million to Series A convertible preferred stock holders. Preferred Stock Upon the closing of the IPO in October 2014, the Company authorized 10,000,000 shares of undesignated preferred stock, $0.001 par value per share, for future issuance. As of June 30, 2015, the Company had no shares of undesignated preferred stock issued or outstanding. Common Stock On October 7, 2014, the Company completed its IPO of 12,650,000 shares of its Class A common stock at a public offering price of $29.00 per share, of which 10,500,000 shares were sold by the Company and 2,150,000 shares were sold by its selling stockholders, including 1,650,000 shares pursuant to the underwriters’ option to purchase additional shares, resulting in net proceeds to the Company of approximately $282.9 million, after deducting underwriting discounts and offering expenses. The Company did not receive any proceeds from the sale of shares by the selling stockholders. The Company authorized 500,000,000 shares of Class A common stock, $0.001 par value per share, and 164,000,000 shares of Class B common stock, $0.001 par value per share, of which 42,973,798 and 37,002,874 shares of Class A common stock and 40,773,291 and 46,179,192 shares of Class B common stock were outstanding as of June 30, 2015 and December 31, 2014, respectively. The rights of the holders of Class A common stock and Class B common stock are identical, except with respect to voting and conversion rights. Each share of Class A common stock is entitled to one vote per share. Each share of Class B common stock is entitled to ten votes per share and is convertible into one share of Class A common stock. The Class B common stock also has approval rights over certain corporate actions. Each share of Class B common stock may be converted into one share of Class A common stock at the option of its holder and will be automatically converted into one share of Class A common stock upon transfer thereof, subject to certain exceptions. In addition, upon the date on which the outstanding shares of Class B common stock represent less than 10% of the aggregate number of shares of the then outstanding Class A common stock and Class B common stock, or in the event of the affirmative vote or written consent of holders of at least 66 2 /3% of the outstanding shares of Class B common stock, all outstanding shares of Class B common stock shall convert automatically into Class A common stock. Subject to preferences that may apply to any shares of preferred stock outstanding at the time, the holders of common stock are entitled to receive dividends out of funds legally available if the Board, in its discretion, determines to issue dividends and then only at the times and in the amounts that the Board may determine. Since the IPO through June 30, 2015, 29,801,332 shares of Class B common stock were converted to Class A common stock.

Credit Agreement

Credit Agreement	6 Months Ended
	Jun. 30, 2015
Credit Agreement
Credit Agreement	11. Credit Agreement The Company has a credit agreement with Bank of America, which was renewed on July 31, 2015. The credit agreement currently provides the Company with a line of credit and a credit card program with a maximum commitment of $35.0 million, $45.0 million and $35.0 million for the periods of July 31, 2015 through September 30, 2015, October 1, 2015 through February 28, 2016 and March 1, 2016 through July 31, 2016, respectively, with the committed amounts of $10.0 million to be used for a revolving line of credit and to support letters of credit and the remainder to be used to support the Company’s credit card program. The credit agreement is renewable on an annual basis and, if not renewed, will expire on July 31, 2016. The Company is required to maintain certain covenants, including tangible net worth and unencumbered liquid assets, with which the Company was compliant at June 30, 2015 and December 31, 2014. The Company did not borrow any amounts under the credit agreement during the three and six months ended June 30, 2015 and the year ended December 31, 2014.

Net Loss per Share

Net Loss per Share	6 Months Ended
	Jun. 30, 2015
Net Loss per Share
Net Loss per Share	12. Net Loss per Share Basic and diluted net loss per share is presented using the two class method required for participating securities. Class A and Class B common stock have been the only outstanding equity in the Company since the IPO in October 2014. The rights of the holders of Class A and Class B common stock are identical, except with respect to voting and conversion as described in Note 10, Stockholder’s Equity . Basic net loss per share attributable to common stockholders is computed using the weighted-average number of shares of common stock outstanding during the period. Diluted net loss per share attributable to common stockholders is computed using the weighted-average number of shares of common stock and, if dilutive, common stock equivalents outstanding during the period. The Company’s common stock equivalents consist of shares issuable upon the release of RSUs, and to a lesser extent, the incremental shares of common stock issuable upon the exercise of stock options and unvested restricted stock. The dilutive effect of these common stock equivalents is reflected in diluted earnings per share by application of the treasury stock method. The Company’s basic and diluted net loss per share are the same because the Company has generated net loss to common stockholders and common stock equivalents are excluded from diluted net loss per share because they have an antidilutive impact. The Company allocates undistributed earnings between the classes on a one-to-one basis when computing net loss per share. As a result, basic and diluted net loss per share of Class A and Class B common stock are equivalent. Prior to the conversion of the Series A and Series B convertible preferred stock to Class B common stock, effective October 7, 2014, the Company applied the two class method for calculating and presenting earnings per share. Under the two class method, net loss attributable to common stockholders is determined by allocating undistributed earnings between common stock and participating securities. Undistributed earnings are calculated as net loss less distributed earnings and accretion of Series A and Series B convertible preferred stock. As holders of Series A and Series B convertible preferred stock did not have a contractual obligation to share in the losses of the Company, the net loss attributable to common stockholders for each periods prior to the IPO was not allocated between common stock and participating securities. Accordingly, Series A and Series B convertible preferred stock are excluded from the calculation of basic and diluted net loss per share. The Company’s basic and diluted net loss per share are the same because the Company has generated net loss to common stockholders and common stock equivalents are excluded from diluted net loss per share because they have an antidilutive impact. The following table presents the calculation of basic and diluted net loss per share (in thousands, except per share data): Three months ended June 30, Six months ended June 30, 2015 2014 2015 2014 Net loss $ ) $ ) $ ) $ ) Accretion of convertible redeemable preferred units — ) — ) Net loss attributable to common stockholders $ ) $ ) $ ) $ ) Weighted average common shares used for basic and diluted net loss per share computation Net loss unit attributable to common stockholders per share: Basic and Diluted $ ) $ ) $ ) $ ) The following have been excluded from the computation of basic and diluted net loss per share attributable to common stockholders as their effect would have been antidilutive: Three and six months ended June 30, 2015 2014 Series A convertible redeemable preferred units — Series B convertible redeemable preferred units — Stock options Restricted stock Restricted stock units Total

Recent Accounting Pronouncement

Recent Accounting Pronouncements	6 Months Ended
	Jun. 30, 2015
Recent Accounting Pronouncements
Recent accounting pronouncements	13. Recent Accounting Pronouncements In August 2014, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU 2014-15”), Presentation of Financial Statements, Going Concern . ASU 2014-15 will explicitly require management to assess an entity’s ability to continue as a going concern, and to provide related footnote disclosure in certain circumstances. The new standard will be effective for all entities in the first annual period ending after December 15, 2016 and earlier adoption is permitted. Management does not expect that the application of ASU 2014-15 will have an impact on the Company’s financial condition, results of operations or cash flows. In May 2014, the FASB issued ASU No. 2014-09 (“ASU 2014-09”), Revenue from Contracts with Customers . This ASU is a comprehensive new revenue recognition model that requires a company to recognize revenue to depict the transfer of goods or services to a customer at an amount that reflects the consideration it expects to receive in exchange for those goods or services. This ASU is effective for annual reporting periods beginning after December 15, 2016 and early adoption is not permitted. Accordingly, the Company will adopt this ASU on January 1, 2017. Management is currently evaluating which transition approach to use and the impact of the adoption of this ASU on the Company’s financial condition, results of operations or cash flows.

Marketable Securities and Fai20

Marketable Securities and Fair Value Measurements (Tables)	6 Months Ended
	Jun. 30, 2015
Marketable Securities and Fair Value Measurements
Schedule of marketable securities	The following table presents details of the Company’s marketable securities as of June 30, 2015 (in thousands): June 30, 2015 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Short-term: Investment securities $ $ $ ) $ Long-term: Investment securities ) Total $ $ $ ) $
Schedule of the fair value of the Company's financial assets measured at fair value on a recurring basis based on the three-tier value hierarchy	The following tables set forth the fair value of the Company’s financial assets measured at fair value on a recurring basis as of June 30, 2015 and December 31, 2014 based on the three-tier value hierarchy (in thousands): June 30, 2015 Level 1 Level 2 Level 3 Total Cash equivalents: Money market funds $ $ — $ — $ Short-term investments: Certificates of deposit — — Investment securities — — Long-term: Investment securities — — Total $ $ $ — $ December 31, 2014 Level 1 Level 2 Level 3 Total Cash equivalents: Money market funds $ $ — $ — $ Short-term investments: Certificates of deposit — — Restricted cash: Money market funds — — Total $ $ — $ — $

Intangible Assets and Goodwill

Intangible Assets and Goodwill (Tables)	6 Months Ended
	Jun. 30, 2015
Intangible Assets and Goodwill
Schedule of intangible assets	The following table summarizes intangible assets as of June 30, 2015 and December 31, 2014 (in thousands): Weighted-Average June 30, 2015 Amortization Period (Years) Gross Carrying Amount Accumulated Amortization Net Book Value Trademarks 5 $ $ ) $ Customer relationships 5 ) Non-compete agreements 3 - 5 ) Technology 5 ) Other intangibles 3 ) Domain names 5 ) Total $ $ ) $ Weighted-Average December 31, 2014 Amortization Period (Years) Gross Carrying Amount Accumulated Amortization Net Book Value Trademarks 5 $ $ ) $ Customer relationships 5 ) Non-compete agreements 3 - 5 ) Technology 5 ) Other intangibles 3 ) Domain names 5 ) Total $ $ ) $
Changes in goodwill	The following table presents the changes in goodwill during the six months ended June 30, 2015 (in thousands): Net Book Value Goodwill as of December 31, 2014 $ Foreign currency exchange rate effect ) Goodwill as of June 30, 2015 $

Property and Equipment, net (Ta

Property and Equipment, net (Tables)	6 Months Ended
	Jun. 30, 2015
Property and Equipment, net
Schedule of property and equipment, net	The following table summarizes property and equipment, net as of June 30, 2015 and December 31, 2014 (in thousands): June 30, December 31, 2015 2014 Furniture and computer equipment $ $ Site and software development costs Leasehold improvements Construction in progress Less accumulated depreciation and amortization ) ) Property and equipment, net $ $

Equity-Based Compensation (Tabl

Equity-Based Compensation (Tables)	6 Months Ended
	Jun. 30, 2015
Equity based compensation
Summary of status and activity for awards of stock options	Shares Weighted- Average Exercise Price Weighted- Average Remaining Contractual Term (Years) Outstanding at December 31, 2014 $ Options exercised ) $ Options forfeited/cancelled ) $ Outstanding at June 30, 2015 $ Exercisable at June 30, 2015 $ Expected to vest as of June 30, 2015 $
Restricted common units
Equity based compensation
Summary of status and activity for awards of restricted stock units	Shares Weighted- Average Grant Date Fair Value Outstanding at December 31, 2014 $ Restricted stock vested ) $ Unvested at June 30, 2015 $ Expected to vest as of June 30, 2015 $
Restricted stock units
Equity based compensation
Summary of status and activity for awards of restricted stock units	Shares Weighted- Average Grant Date Fair Value Outstanding at December 31, 2014 $ RSUs granted $ RSUs vested ) $ RSUs forfeited/cancelled ) $ Outstanding at June 30, 2015 $ Expected to vest as of June 30, 2015 $

Segment and Geographic Inform24

Segment and Geographic Information (Tables)	6 Months Ended
	Jun. 30, 2015
Segment and Geographic Information
Schedule of operating information by segment	The following table presents the activity related to the Company’s net revenue from Direct Retail sales derived through the Company’s sites and Other sales derived through sites operated by third parties and fees from third-party advertising distribution providers (in thousands): Three months ended June 30, Six months ended June 30, 2015 2014 2015 2014 Net revenue Direct Retail $ $ $ $ Other Net revenue $ $ $ $
Schedule of revenue and long-lived assets by geographic area	The following table presents revenue and long-lived assets by geographic area (in thousands): Three months ended June 30, Six months ended June 30, 2015 2014 2015 2014 Geographic net revenue: United States $ $ $ $ International Total $ $ $ $ June 30, December 31, 2015 2014 Geographic long-lived assets: United States $ $ International Total $ $

Net Loss per Share (Tables)

Net Loss per Share (Tables)	6 Months Ended
	Jun. 30, 2015
Net Loss per Share
Schedule of calculation of basic and diluted net loss per share	The following table presents the calculation of basic and diluted net loss per share (in thousands, except per share data): Three months ended June 30, Six months ended June 30, 2015 2014 2015 2014 Net loss $ ) $ ) $ ) $ ) Accretion of convertible redeemable preferred units — ) — ) Net loss attributable to common stockholders $ ) $ ) $ ) $ ) Weighted average common shares used for basic and diluted net loss per share computation Net loss unit attributable to common stockholders per share: Basic and Diluted $ ) $ ) $ ) $ )
Schedule of computation of basic and diluted net loss per share attributable to common stockholders as their effect would have been antidilutive	Three and six months ended June 30, 2015 2014 Series A convertible redeemable preferred units — Series B convertible redeemable preferred units — Stock options Restricted stock Restricted stock units Total

Basis of Presentation (Details)

Basis of Presentation (Details)	6 Months Ended
	Jun. 30, 2015item
Basis Of Presentation
Minimum number of products offered	7,000,000
Minimum number of suppliers providing products offered	7,000
Number of distinct brands	5

Summary of Significant Accoun27

Summary of Significant Accounting Policies (Details)	6 Months Ended
	Jun. 30, 2015
Minimum
Marketable Securities Maturity Period	1 year
Maximum
Marketable Securities Maturity Period	3 years

Marketable Securities and Fai28

Marketable Securities and Fair Value Measurements (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2015	Dec. 31, 2014
Marketable securities and fair value measurements
Amortized cost	$ 90,203
Gross Unrealized Gains	40
Gross Unrealized Losses	(88)
Estimated Fair Value	90,155
Long-term
Marketable securities and fair value measurements
Amortized cost	78,775
Gross Unrealized Gains	37
Gross Unrealized Losses	(82)
Estimated Fair Value	78,730
Short-term
Marketable securities and fair value measurements
Amortized cost	11,428
Gross Unrealized Gains	3
Gross Unrealized Losses	(6)
Estimated Fair Value	11,425
Recurring basis
Marketable securities and fair value measurements
Total assets	325,328	$ 362,897
Recurring basis | Cash equivalents
Marketable securities and fair value measurements
Money market funds	195,173	302,595
Recurring basis | Short-term
Marketable securities and fair value measurements
Certificates of deposit	40,000	60,000
Investment securities	11,425
Recurring basis | Long-term
Marketable securities and fair value measurements
Investment securities	78,730
Recurring basis | Restricted cash
Marketable securities and fair value measurements
Money market funds		302
Recurring basis | Level 1
Marketable securities and fair value measurements
Total assets	235,173	362,897
Recurring basis | Level 1 | Cash equivalents
Marketable securities and fair value measurements
Money market funds	195,173	302,595
Recurring basis | Level 1 | Short-term
Marketable securities and fair value measurements
Certificates of deposit	40,000	60,000
Recurring basis | Level 1 | Restricted cash
Marketable securities and fair value measurements
Money market funds		$ 302
Recurring basis | Level 2
Marketable securities and fair value measurements
Total assets	90,155
Recurring basis | Level 2 | Short-term
Marketable securities and fair value measurements
Investment securities	11,425
Recurring basis | Level 2 | Long-term
Marketable securities and fair value measurements
Investment securities	$ 78,730

Intangible Assets and Goodwil29

Intangible Assets and Goodwill (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014	Dec. 31, 2014
Intangible assets
Gross Carrying Amount	$ 7,135		$ 7,135		$ 7,187
Accumulated Amortization	(4,783)		(4,783)		(4,333)
Total	2,352		2,352		2,854
Amortization of Intangible Assets	236	$ 250	486	$ 499
Goodwill
Goodwill	3,520		3,520		$ 3,624
Foreign currency exchange rate effect			(104)
Australia
Goodwill
Goodwill	1,600		1,600
Intangible Assets, Net (Excluding Goodwill)	200		$ 200
Trademarks
Intangible assets
Weighted-Average Amortization Period			5 years		5 years
Gross Carrying Amount	1,995		$ 1,995		$ 2,001
Accumulated Amortization	(801)		(801)		(604)
Total	1,194		$ 1,194		$ 1,397
Customer relationships
Intangible assets
Weighted-Average Amortization Period			5 years		5 years
Gross Carrying Amount	1,300		$ 1,300		$ 1,300
Accumulated Amortization	(498)		(498)		(368)
Total	802		802		932
Non-compete agreements
Intangible assets
Gross Carrying Amount	107		107		108
Accumulated Amortization	(69)		(69)		(52)
Total	38		$ 38		$ 56
Non-compete agreements | Minimum
Intangible assets
Weighted-Average Amortization Period			3 years		3 years
Non-compete agreements | Maximum
Intangible assets
Weighted-Average Amortization Period			5 years		5 years
Technology
Intangible assets
Weighted-Average Amortization Period			5 years		5 years
Gross Carrying Amount	673		$ 673		$ 718
Accumulated Amortization	(516)		(516)		(467)
Total	157		$ 157		$ 251
Other intangibles
Intangible assets
Weighted-Average Amortization Period			3 years		3 years
Gross Carrying Amount	373		$ 373		$ 373
Accumulated Amortization	(215)		(215)		(158)
Total	158		$ 158		$ 215
Domain names
Intangible assets
Weighted-Average Amortization Period			5 years		5 years
Gross Carrying Amount	2,687		$ 2,687		$ 2,687
Accumulated Amortization	(2,684)		(2,684)		(2,684)
Total	$ 3		$ 3		$ 3

Property and Equipment, net (De

Property and Equipment, net (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014	Dec. 31, 2014
Property and equipment, net
Property and equipment, gross	$ 127,863		$ 127,863		$ 103,783
Less accumulated depreciation and amortization	(51,496)		(51,496)		(43,144)
Property and equipment, net	76,367		76,367		60,639
Depreciation and amortization	7,200	$ 4,400	13,700	$ 8,300
Furniture and computer equipment
Property and equipment, net
Property and equipment, gross	55,672		55,672		48,399
Site and software development costs
Property and equipment, net
Property and equipment, gross	43,859		43,859		36,294
Leasehold improvements
Property and equipment, net
Property and equipment, gross	28,124		28,124		14,290
Construction in progress
Property and equipment, net
Property and equipment, gross	$ 208		$ 208		$ 4,800

Commitments and Contingencies (

Commitments and Contingencies (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014	Dec. 31, 2014
Commitments and Contingencies
Rental expense under operating leases	$ 4.6	$ 2.6	$ 8.7	$ 6.1
Letter of credit issued as security for lease agreements	$ 3.3		$ 3.3		$ 3.3

Commitments and Contingencies32

Commitments and Contingencies (Details 2) $ in Millions	Jun. 30, 2015USD ($)
Sales and other similar tax assessments
Contingencies
Aggregate amount of claims	$ 12.7

Equity-Based Compensation (Deta

Equity-Based Compensation (Details) $ / shares in Units, $ in Millions	6 Months Ended		12 Months Ended
	Jun. 30, 2015USD ($)item$ / sharesshares	Jun. 30, 2014USD ($)	Dec. 31, 2014$ / sharesshares	Apr. 30, 2014$ / shares
Equity based compensation
Number of vesting triggers | item	2
Service period	5 years
2014 Plan
Equity based compensation
Number of shares authorized	8,603,066
Shares issued under plan	1,246,384
Stock options
Common stock options
Outstanding at the beginning of the period (in shares)	449,046
Options exercised (in shares)	(109,562)
Repurchased (in shares)	9,028
Options forfeited/cancelled (in shares)	(2,336)
Outstanding at the end of the period (in shares)	337,148		449,046
Exercisable at the end of the period (in shares)	327,865
Expected to vest at the end of the period (in shares)	5,896
Weighted Average Grant Date Fair Value
Outstanding at the beginning of the period (in dollars per share) | $ / shares	$ 2.98
Exercised (in dollars per share) | $ / shares	2.96
Forfeited/canceled (in dollars per share) | $ / shares	3.23
Outstanding at the end of the period (in dollars per share) | $ / shares	2.98		$ 2.98
Exercisable at the end of the period (in dollars per share) | $ / shares	2.97
Expected to vest at the end of the period (in dollars per share) | $ / shares	$ 3.32
Weighted-Average Remaining Contractual Term (Years)
SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageRemainingContractualTerm2	6 years		6 years 6 months
SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageRemainingContractualTerm2	6 years		6 years 6 months
Exercisable at the end of the period	6 years
Expected to vest at the end of the period	6 years
Additional disclosures
Aggregate intrinsic value of stock options exercised | $	$ 2.8
Aggregate intrinsic value of stock options outstanding and repurchased | $	11.7
Aggregate intrinsic value of stock options exercisable | $	11.4
Unrecognized share-based compensation | $	$ 0.1
Weighted average remaining vesting term for options expected to vest	3 months 18 days
Restricted stock
Common stock options
Repurchased (in shares)	202,757
Common stock options and restricted common stocks
Equity based compensation
Share based compensation expenses | $		$ 5.5
Weighted-Average Remaining Contractual Term (Years)
Tender offer price per unit | $ / shares				$ 26.23
Payments of repurchase of stock | $	$ 5.5
Compensation charge | $	$ 5.5

Equity-Based Compensation (De34

Equity-Based Compensation (Details 2) - Jun. 30, 2015 - USD ($) $ / shares in Units, $ in Millions	Total
Restricted stock
Restricted stock and units
Outstanding at the beginning of the period (in shares)	161,476
Vested (in shares)	(148,913)
Unvested at the end of the period (in shares)	12,563
Expected to vest at the end of the period (in shares)	8,002
Weighted-Average Grant-Date Fair Value
Outstanding at the beginning of the period (in dollars per share)	$ 4.75
Vested (in dollars per share)	4.75
Unvested at the end of the period (in dollars per share)	4.75
Expected to vest at the end of the period (in dollars per share)	$ 4.75
Additional information
Intrinsic value of stock vested and repurchased	$ 3.9
Aggregate intrinsic value	0.5
Unrecognized share-based compensation	$ 0.1
Weighted average remaining vesting term for options expected to vest	3 months 18 days
Restricted stock units
Restricted stock and units
Outstanding at the beginning of the period (in shares)	4,542,231
Granted (in shares)	1,246,384
Vested (in shares)	(717,325)
Forfeited/cancelled (in shares)	(230,104)
Unvested at the end of the period (in shares)	4,841,186
Expected to vest at the end of the period (in shares)	3,587,871
Weighted-Average Grant-Date Fair Value
Outstanding at the beginning of the period (in dollars per share)	$ 17.67
Granted (in dollars per share)	31.67
Vested (in dollars per share)	16.24
Forfeited/cancelled (in dollars per share)	19.55
Unvested at the end of the period (in dollars per share)	21.54
Expected to vest at the end of the period (in dollars per share)	$ 22
Additional information
Intrinsic value of stock vested	$ 20.3
Aggregate intrinsic value	182.2
Unrecognized share-based compensation	$ 52.3
Weighted average remaining vesting term for options expected to vest	1 year 8 months 12 days

Segment and Geographic Inform35

Segment and Geographic Information (Details) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015USD ($)	Jun. 30, 2014USD ($)	Jun. 30, 2015USD ($)item	Jun. 30, 2014USD ($)
Segment and Geographic Information
Number of operating segment | item			1
Number of reportable segment | item			1
Direct Retail	$ 440,297	$ 243,534	$ 809,694	$ 469,534
Other	51,455	51,903	106,429	104,610
Net revenue	$ 491,752	$ 295,437	$ 916,123	$ 574,144

Segment and Geographic Inform36

Segment and Geographic Information (Details 2) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014	Dec. 31, 2014
Geographic areas, revenues from external customers
Geographic net revenue	$ 491,752	$ 295,437	$ 916,123	$ 574,144
Geographic areas, long-lived assets
Geographic long-lived assets	76,367		76,367		$ 60,639
United States
Geographic areas, revenues from external customers
Geographic net revenue	464,667	276,694	865,244	536,829
Geographic areas, long-lived assets
Geographic long-lived assets	74,066		74,066		59,013
International
Geographic areas, revenues from external customers
Geographic net revenue	27,085	$ 18,743	50,879	$ 37,315
Geographic areas, long-lived assets
Geographic long-lived assets	$ 2,301		$ 2,301		$ 1,626

Income Taxes (Detail)

Income Taxes (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014	Dec. 31, 2014
Income Taxes
Income Tax Expense (Benefit)	$ 73	$ 2	$ 119	$ 17
Current income tax expense (benefit)
Current federal income tax expense (benefit)		0		0
Current state income tax expense (benefit)		0		0
Components of deferred tax assets and liabilities
Gross unrecognized tax benefits	200		200		$ 200
Maximum | Foreign
Income Taxes
Income Tax Expense (Benefit)	$ 100	$ 100	$ 100	$ 100

Stockholders' Equity38

Stockholders' Equity $ / shares in Units, $ in Millions	Oct. 07, 2014USD ($)$ / sharesshares	Oct. 01, 2014USD ($)	Oct. 31, 2014USD ($)$ / sharesshares	Mar. 31, 2014USD ($)	Jun. 30, 2015USD ($)item$ / sharesshares	Jun. 30, 2015$ / sharesshares	Dec. 31, 2014USD ($)$ / sharesshares	Dec. 31, 2013USD ($)	Dec. 31, 2012USD ($)
Stockholders' Equity
Accumulated deficit transferred to additional paid in capital | $		$ 306.2
Preferred stock, shares authorized			10,000,000		10,000,000	10,000,000	10,000,000
Preferred stock, par value (in dollars per share) | $ / shares			$ 0.001		$ 0.001	$ 0.001	$ 0.001
Preferred stock, shares issued					0	0	0
Preferred stock, shares outstanding					0	0
Class A common stock
Common stock
Common stock, shares authorized					500,000,000	500,000,000	500,000,000
Common stock, par value (in dollars per unit) | $ / shares					$ 0.001	$ 0.001	$ 0.001
Common stock, shares outstanding					42,973,798	42,973,798	37,002,874
Number of votes each holder is entitled | item					1
Class A common stock | Initial Public Offering
Common stock
Initial public offering, aggregate number of shares of common stock sold	12,650,000
Share issue price (in dollars per share) | $ / shares	$ 29
Number of shares of common stock sold	10,500,000
Number of shares of stock sold by the selling shareholders	2,150,000
Number of shares of sold by the selling shareholders pursuant to an option granted to the underwriters to purchase additional shares	1,650,000
Net proceeds from initial public offering | $	$ 282.9
Class B common stock
Common stock
Common stock, shares authorized					164,000,000	164,000,000	164,000,000
Common stock, par value (in dollars per unit) | $ / shares					$ 0.001	$ 0.001	$ 0.001
Common stock, shares outstanding					40,773,291	40,773,291	46,179,192
Number of votes each holder is entitled | item					10
Conversion ratio					1
Conversion ratio following the completion of the offering					1
Conversion ratio upon transfer					1
Number of shares converted into Class A shares						29,801,332
Class B common stock | Minimum
Common stock
Percentage of outstanding shares of Class B common stock that shall convert automatically in the event of the affirmative vote or written consent of holders					66.67%
Class B common stock | Maximum
Common stock
Aggregate number of shares outstanding Class A common stock and Class B common stock that shall convert automatically (as a percent)					10.00%
Series A convertible redeemable preferred units
Stockholders' Equity
Accretion of convertible redeemable preferred units | $							$ 14.4	$ 25.4	$ 12.2
Reduction of accretion expenses | $					$ 14.8
Accrued dividend distribution | $			$ 24.5	$ 15
Series A and Series B convertible redeemable preferred units | Class B common stock
Stockholders' Equity
Conversion of units to common stock (in shares)					27,546,934
Series B convertible redeemable preferred units
Stockholders' Equity
Accretion of convertible redeemable preferred units | $							$ 2.5

Credit Agreement (Details)

Credit Agreement (Details) - Subsequent event $ in Millions	Jul. 31, 2015USD ($)
Revolving line of credit
Credit agreement
Maximum borrowing capacity	$ 10
Wayfair, Inc. | July 31, 2015 through September 30, 2015 | Line of credit
Credit agreement
Maximum borrowing capacity	35
Wayfair, Inc. | October 1, 2015 through February 28, 2016 | Line of credit
Credit agreement
Maximum borrowing capacity	45
Wayfair, Inc. | March 1, 2016 through July 31, 2016 | Line of credit
Credit agreement
Maximum borrowing capacity	$ 35

Net Loss per Share (Details)

Net Loss per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Anti-dilutive securities
Common stockholders outstanding that were excluded from the computation of diluted net loss per share	5,190,897	37,549,948	5,190,897	37,549,948
Numerator:
Net loss	$ (19,334)	$ (23,375)	$ (46,470)	$ (51,401)
Accretion of convertible redeemable preferred units		(4,605)		(11,755)
Net loss attributable to common stockholders	$ (19,334)	$ (27,980)	$ (46,470)	$ (63,156)
Denominator:
Weighted average common shares used for basic and diluted net loss per share computation	83,603,000	40,515,000	83,407,000	40,829,000
Net loss per common unit attributable to common stockholders:
Basic and Diluted (in dollars per unit)	$ (0.23)	$ (0.69)	$ (0.56)	$ (1.55)
Series A convertible redeemable preferred units
Anti-dilutive securities
Common stockholders outstanding that were excluded from the computation of diluted net loss per share		21,551,801		21,551,801
Series B convertible redeemable preferred units
Anti-dilutive securities
Common stockholders outstanding that were excluded from the computation of diluted net loss per share		5,995,133		5,995,133
Stock options
Anti-dilutive securities
Common stockholders outstanding that were excluded from the computation of diluted net loss per share	337,148	646,413	337,148	646,413
Restricted stock
Anti-dilutive securities
Common stockholders outstanding that were excluded from the computation of diluted net loss per share	12,563	3,271,516	12,563	3,271,516
Restricted stock units
Anti-dilutive securities
Common stockholders outstanding that were excluded from the computation of diluted net loss per share	4,841,186	6,085,085	4,841,186	6,085,085
Class B common stock
Numerator:
Net loss	$ (19,334)	$ (23,375)	$ (46,470)	$ (51,401)
Accretion of convertible redeemable preferred units		(4,605)		(11,755)
Net loss attributable to common stockholders	$ (19,334)	$ (27,980)	$ (46,470)	$ (63,156)
Denominator:
Weighted average common shares used for basic and diluted net loss per share computation	83,603,000	40,515,000	83,407,000	40,829,000
Net loss per common unit attributable to common stockholders:
Basic and Diluted (in dollars per unit)	$ (0.23)	$ (0.69)	$ (0.56)	$ (1.55)