Wish releases third quarter financial report: order volume continues to grow, logistics on-time delivery rate improves

Recently, ContextLogic Inc., the parent company of Wish, a global mobile e-commerce platform, released its third-quarter financial results ending September 30, 2022, showing that Wish's total revenue in the third quarter was US$125 million. In the third quarter, Wish continued to advance its strategic transformation plan, creating three major business growth pillars (i.e., improving user experience, deepening relationships with merchants, and achieving operational excellence), and achieved phased operational results. Wish's order volume continued to grow in the third quarter, the customer refund rate and order cancellation rate both decreased, the on-time delivery rate reached 92%, and the customer shopping experience was significantly improved.

The financial report also shows that in the third quarter of 2022, Wish's core platform market revenue was US$40 million, Product Boost revenue was US$11 million, and logistics revenue was US$74 million. Among them, Wish's free cash flow was negative US$100 million, a significant improvement from the negative US$344 million in the third quarter of fiscal 2021.

Fourth Quarter Fiscal 2022 Financial Guidance

● Adjusted EBITDA: Adjusted EBITDA loss is expected to be between $90 million and $110 million.

Consolidated financial data for the third quarter of 2022

The following table sets forth the unaudited GAAP and non-GAAP financial highlights for the respective periods:

Revenue

(In millions, except percentages; data unaudited)

Other financial data

(In millions, except percentages; data unaudited)

^* Denotes non- GAAP measures. See the note titled “Use of Non-GAAP Financial Measures” below for more information on our presentation of non-GAAP measures.

Forward Guidance – Fourth Quarter Fiscal 2022

(In millions, except percentages; data are unaudited)

We expect the following Adjusted EBITDA financial results for the periods described below:

Three Months Ended

*Wish has not provided quantitative reconciliations of forecasted Adjusted EBITDA to forecasted GAPP net income (loss) of total Adjusted EBITDA or forecasted GAPP income (loss) before taxes to segment Adjusted EBITDA in this earnings release because it is beyond the Company’s reasonable efforts to accurately calculate certain reconciliation items, including, but not limited to, stock-based compensation and income taxes, which are directly impacted by unpredictable fluctuations in the Company’s Class A common stock price.

"The entire Wish team continued to execute on our core strategy based on three pillars in the third quarter," said Joe Yan, interim CEO of Wish. "As we advance our business transformation, we have begun to see results, including sequential quarterly growth in order volume, a decrease in customer refunds and order cancellations , and an on-time delivery rate of approximately 92%."

"As one of the world's largest e-commerce platforms, our goal is to focus on becoming a leader in discovery shopping, providing cost-effective products, and becoming the preferred platform for consumers for daily shopping and searching for interesting products. Looking ahead, we will leverage our advantages in data science and predictive capabilities to provide multi-dimensional personalized customization based on consumer preferences, allowing them to buy high-quality and low-priced goods from more and more global merchants, while enhancing Wish's logistics capabilities and continuing to improve the operational efficiency of internal teams. I would also like to thank our employees for their hard work, dedication, and all the difficult decisions over the past year. Their efforts have laid a solid foundation for our next stage of transformation. " said Joe Yan.

It is understood that Wish continues to focus on strategic transformation and promote its brand reshaping plan. In order to cooperate with its first phase of global brand marketing activities and the peak shopping season, Wish has launched the second phase of its global integrated brand marketing (October 15 to December 30), and carried out multi-channel and multi-market marketing activities through a new creative advertisement Forced Smiles (bitter smile). The creative advertisement was also broadcast on digital media, television media and streaming media, radio and social platforms in the UK, the United States, Germany, Italy, Canada and Australia during the same period.

Wish believes that the series of brand marketing activities continue to showcase the new Wish to consumers and are of milestone significance, in order to "build a more powerful discovery shopping world for consumers and merchants."

On the logistics side, Wish continues to invest and improve its layout, significantly improving the on-time delivery rate of logistics. In October this year, Wish joined hands with important Latin American logistics service providers, Moovin in Costa Rica and Servicios Postales del Perú (hereinafter referred to as Serpost) in Peru, which means that the delivery time of Wish orders will be shortened by more than 15 days. Wish has also become one of the fastest cross-border e-commerce platforms in the logistics markets of Costa Rica and Peru.

Starting from October 17, 2022 (UTC time), Wish's A+ logistics plan for Costa Rica and Peru will be officially launched and open to all merchants in mainland China delivering to this route, aiming to fully help merchants improve their logistics performance and user experience.  

About Wish

Wish brings affordable and fun shopping experiences to tens of millions of consumers around the world. Since its founding in San Francisco in 2010, Wish has grown into one of the world's largest e-commerce platforms, connecting tens of millions of value-conscious consumers with merchants. Wish combines technology and data science capabilities with an innovative "discovery" shopping model to create a visually distinctive, fun and personalized shopping experience for users.

Wish

Financial Report

Order volume