11:23 AM EDT, 05/02/2024 (MT Newswires) -- Shares of Wayfair ( W ) soared intraday Thursday after the online furniture retailer reported stronger-than-expected first-quarter results even as orders fell.

Revenue dipped to $2.73 billion for the three months ended March 31 from $2.77 billion the year earlier but surpassed the $2.64 billion average analyst estimate on Capital IQ. Shares of Wayfair ( W ) surged 11% in Thursday trade.

The retailer narrowed its adjusted per-share loss to $0.32 from a loss of $1.13 year over year, better than the consensus view for a $0.40 loss. Total operating expenses slid to $1.05 billion in the March quarter from $1.17 billion in the same period of 2023.

"The first quarter ended on an upswing as we saw the category show signs of improvement in late February and March following a challenging start to the year, with our own top line results also reflecting this improvement," Chief Executive Niraj Shah told analysts on a conference call, according to a Capital IQ transcript.

Active customers climbed 2.8% year over year to 22.3 million while orders delivered in the first quarter slipped 1%. Last twelve months net revenue per active customer slid to $537 from $552.

Looking ahead, Chief Financial Officer Kate Gulliver told analysts that the company's 2024 framework for flat revenue growth remains intact and Wayfair ( W ) is on track for more than $600 million of adjusted earnings before interest, taxes, depreciation and amortization in 2024.

That guidance marks an improvement from 2023 when Wayfair ( W ) posted a 1.8% revenue decline and adjusted EBITDA of $306 million.

"In combination with our guide on adjusted EBITDA, we would expect considerable free cash flow generation in the second quarter as is typical in a period with sequential revenue growth," Gulliver told analysts. Cost actions taken over the past two years have set Wayfair ( W ) up for a "healthy year of free cash flow generation in 2024" and will enable the company to begin deleveraging its balance sheet amid upcoming maturities, she said.