Market Insider

Wayfair plunges after posting wider-than-expected loss

Wayfair IPO on the floor of the New York Stock Exchange.
Lucas Jackson | Reuters

Wayfair shares dove more than 19 percent Tuesday after the company announced it lost an adjusted 43 cents per share during the second quarter, missing estimates by two cents.

The company posted revenue of $787 million, a 60 percent year-over-year increase, versus expectations for $782 million.

Wayfair also increased its number of active customers by 65 percent to 6.7 million.

"Our exceptional growth is fueled by a steadfast commitment to exceeding customer expectations through innovation," CEO Niraj Shah said in a press release. "We are leveraging our expertise in technology and data across all areas of the business with a strategic focus on the expansion and optimization of our warehousing, transportation and logistics infrastructure.

Shah said on "Squawk Alley" that Wayfair has gotten past initial growing pains and that its customers are fueling the company's growth.

"Repeat customers are growing faster new customers," Shah said. "What you're seeing is that customers care."

Wayfair's stock has climbed more than 6 percent in the past year.

Wayfair's 12-month performance: