2 Key Metrics That Led Wayfair To Report Strong Q2 Numbers

Shares of Wayfair Inc W have imploded around 40 percent since the company reported record numbers for second quarter on Wednesday. Niraj Shah, Wayfair CEO, was on CNBC to discuss the superior performance in two important metrics that led the company to report such great numbers for second quarter.

Advertising Actually Fell

"The thing about our advertising , what made this quarter special is the $2 billion revenue run rate where our direct business grew 80 percent year-over-year and accelerated is while advertising actually fell as a percentage of our revenue," Shah said. "It fell almost 2 percentage points. And so, I think that's the leverage people are very excited about. They're seeing our customers come back more and more often."

Mobile Growth

With more than one-third of the company's sales coming from mobile for the quarter, Shah was asked what's causing this growth. He replied, "We have apps for our key brands, but we also have mobile websites. So, what we're trying to do for the customers, make it convenient wherever she is."

"So, whether that's on her phone using an app, whether that's the browser, whether that's the tablet in the evening on the sofa or whether that's the website on a desktop or a laptop. And by integrating all of those experiences and having the biggest selection and making it incredibly convenient; That combination of things I think has been driving our growth," Shah concluded.