Wish's latest financial report is out: User net recommendation value doubled, and the potential of women's fashion category will be explored

As of March 31, 2022, the platform revenue in the first quarter was US$189 million. Wish's platform transformation strategy has made progress, with the user Net Promoter Score ( NPS) doubling in the first quarter and the number of refunds for shipped orders decreasing . In addition, Wish will launch more exciting initiatives, such as the brand reshaping plan; in order to improve the quality and breadth of products in the core market and enhance the user experience of women who buy fashion, it will explore the potential of the category and rebuild the women's fashion category.

Financial statements show that in the first quarter of 2022, Wish's core market revenue was $90 million; ProductBoost revenue was $14 million; logistics revenue was $85 million; adjusted EBITDA loss was $40 million, a year-on-year narrowing of 49%; net loss was $60 million, a year-on-year narrowing of 53% - of which the net loss per share was $0.09, a significant narrowing from the loss of $0.21 per share in the first quarter of fiscal 2021. In addition, Wish's cash flow from operating activities was negative $146 million - free cash flow was negative $148 million, a significant improvement from the negative $354 million in the first quarter of 2021.

Consolidated financial data for the first quarter of 2022

(In millions, except percentages; data unaudited)

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

Revenue

Other financial data

*Denotes non-GAAP measure

Forward-looking data for the second quarter of 2022

(In millions, except percentages; data unaudited)

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

^* 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 accurate calculation of certain reconciliation items is beyond the Company’s reasonable efforts, including, but not limited to, income taxes, which are directly impacted by the unpredictable fluctuations in the Company’s stock price.

"We have made some progress in our transformation strategy in just a few months, including a doubling of our NPS and a reduction in refunds for shipped orders," said Vijay Talwar, CEO of Wish. "We are very encouraged by these signs, especially the improvement in NPS scores, which gives us confidence that users will return to the Wish platform as we begin to increase advertising spending in June (originally planned for August). We plan to take more exciting new initiatives in the coming months, including the launch of a women's fashion category and the rebranding of Wish."

It is reported that since Wish announced its strategic transformation plan, it has taken multiple measures to improve the merchant and user experience. Recently, Wish has joined hands with Wix, one of the world's leading SaaS platforms, and both parties are committed to creating, managing and developing online businesses. In order to continue to develop a network of high-quality merchants, Wish switched to an "invitation-based" registration model in February this year. This model is based on Wish's strict product quality and trust standards, and actively reviews the applications of new merchants to enter the platform. New merchants must undergo multiple rounds of review before they can enter the platform to promote the standardization and quality improvement of the overall quality of the merchant side.

The previously released Wish Standards program evaluates merchants from multiple dimensions such as product quality, shipping experience, customer reviews, refund rate, and compliance with Wish policies, and is divided into four levels: platinum, gold, silver, and bronze. Merchants that meet the standards will receive more exposure, etc. Wish's efforts to launch Wish Standards on the merchant side have greatly enhanced the two-way service experience on both the merchant and user sides.

Recently, Wish successfully launched a new version of the Wish APP on Android and iOS platforms. The new homepage is simpler, allowing users to easily browse products and adding a more novel shopping experience. Through more visually impactful banner ads, more flexible waterfall flow sections, new elements such as new product star ratings and variants, and a new layout of the ground navigation bar, users can "immerse" and enjoy a happy shopping experience. In addition, Wish Clips introduces a new video shopping method to the market, increasing user engagement, and Wish's growth in NPS is proof of this.

Currently, Wish is still continuing to improve NPS and plans to increase advertising spending on this basis. With the active expansion of more high-quality merchants, the increase in the average order value (AOV) of platform products, and the expansion of the number of high-quality brand products; coupled with the upcoming women's fashion category and brand reshaping plan, how will Wish perform in the market in the future? Let us wait and see.

Wish

Financial Report

female