Investor Presentaiton

Primarily headcount LONG TERM TARGET MODEL Net Revenue Gross Margin wayfair Long-Term Target 2012 2013 Q3 2014 100% 100% 100% 100% 24.2% 24.5% 23.3% 25-27% Merchant Fees + Customer 4.3% 3.9% 4.2% 4.2% Service Advertising 10.5% 11.8% 14.8% 6-8% Other Sales and Marketing 4.0% 3.7% 4.0% 2-3% General & Administrative 7.3% 5.4% 5.9% 3-4% Total Operating Expenses 26.1% 24.8% 28.8% 15 - 19% Adjusted EBITDA (2.0)% (0.3)% (5.5)% 8 - 10% Note: Other Sales and Marketing and General & Administrative have been adjusted to exclude equity based compensation expenses and depreciation and amortization expense. See GAAP to Non-GAAP Reconciliation" Appendix. 22

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