Wayfair Inc. W reported adjusted third-quarter 2017 loss of 65 cents per share, greater than the Zacks Consensus Estimate loss of 44 cents.Higher-than-expected operating expenses impacted the company’s bottom line.During the quarter, management remained confident about growth in markets, namely, Canada, U.K. and Germany. The company made efforts to expand its house-brand offerings in these countries. Also, all important metrics, including LTM revenue per active customer, performed well in the quarter.Since the third-quarter earnings release on Nov 2, the share price is down 4.1%. However, on a year-to-date basis, the company's shares have gained 72.2%, outperforming the industry’s growth of 61.5%.RevenuesWayfair reported total net revenues of $1.198 billion in the third quarter, reflecting an increase of 6.7% sequentially and 39.1% year over year. The increase was driven by strength in both the U.S. and international segments.However, revenues missed the Zacks Consensus Estimate of $1.207 billion.Revenue SegmentsBeginning fourth-quarter 2016, Wayfair has been reporting revenues under two segments — U.S. and International.U.S.: Revenues in this segment increased 33.4% year over year to $1.05 billion. It accounted for 88% of the third quarter revenues.International: Revenues in the International segment increased 39.1% year over year to $147.6 million and contributed the remaining 12% of total revenues.Important MetricsDirect Retail net revenue, which includes sales generated primarily through Wayfair’s sites, were $1.2 billion in the third quarter, increasing 41.9% year over year.Active Customers increased 39.2% to 10.3 million. Also, LTM net revenues per active customer increased 0.5% to $408 million.Orders delivered in the quarter were 4.7 million, reflecting an increase of 38.1% from the year-ago quarter.Repeat customers placed 61.0% of total third quarter orders compared with 56.9% in the year-ago quarter. They placed 2.9 million orders in the third quarter, up 48.2% year over year.Operating ResultsGross margin was 23.4%, down 60 bps sequentially and flat year over year.Wayfair’s operating expenses of $354.3 million increased 34.6% year over year. The operating margin was (6.2%) compared with (7.2%) in the year ago-quarter.Wayfair’s net loss was $76.4 million or 88 cents per share, declining from the year-ago figure of $60.9 million or 72 cents.Balance Sheet & Cash FlowWayfair exited the quarter with cash, cash equivalents and short-term investments of roughly $610.4 million, up from $255.9 million in the prior quarter. Accounts receivables were $27.5 million, up from $23.9 million in the last quarter.Cash flow from operations was $24.8 million in the third quarter. The company spent $31.0 million on capex and $12.2 million on site and software development. Free cash flow was ($18.5) million compared with ($27.2) million in the previous quarter.Wayfair Inc. Price, Consensus and EPS Surprise Wayfair Inc. Price, Consensus and EPS Surprise | Wayfair Inc. QuoteZacks Rank & Other Key PicksCurrently, Wayfair carries a Zacks Rank #4 (Sell). A few better-ranked stocks in the broader technology sector are NVIDIA Corporation NVDA and SMART Global Holdings, Inc. SGH, each sporting a Zacks Rank #1 (Strong Buy), while Applied Materials, Inc. AMAT, carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.Wall Street’s Next AmazonZacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.Click for details >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Wayfair Inc. (W): Free Stock Analysis Report NVIDIA Corporation (NVDA): Free Stock Analysis Report Applied Materials, Inc. (AMAT): Free Stock Analysis Report SMART Global Holdings, Inc. (SGH): Free Stock Analysis Report To read this article on Zacks.com click here.