Wish's second-quarter revenue fell 42%, with a net loss of $80 million

It is learned that on August 3, Wish, one of the largest e-commerce platforms in the United States, announced its second quarter results ending June 30, 2023. Due to fierce competition and a challenging business environment, Wish's revenue this quarter fell sharply. In after-hours trading on Thursday, Wish's stock price plummeted by 14.44%.

According to the financial report, Wish's total revenue in the second quarter was US$78 million, a year-on-year decrease of 42%. Among them, the core market revenue was US$24 million, a year-on-year decrease of 56%; Product Boost revenue was US$6 million, a year-on-year decrease of 45%; logistics revenue was US$48 million, a year-on-year decrease of 30%.

The company's net loss was $80 million, compared with a net loss of $90 million in the same period last year, and its net loss per share was $3.38, compared with a net loss per share of $4.05 in the same period last year.

Wish reported an adjusted EBITDA loss of $66 million in the second quarter of 2023, compared with a loss of $58 million in the second quarter of 2022. The company had free cash flow of negative $91 million as of June 30, compared with negative $67 million in the second quarter of 2022.

"Our second quarter results reflect the continued challenging operating environment," said Joe Yan, CEO of Wish. "While our adjusted EBITDA performance was in line with expectations, our results were subject to macro and competitive pressures, resulting in a 42% decline in total revenue."

"Looking ahead to the rest of the year, macroeconomic uncertainties and competitive pressures are likely to persist. To meet challenges and achieve long-term development, we are taking aggressive actions to significantly reduce our cost structure and improve operational efficiency. In the future, the Wish team will continue to focus on improving customer experience and deepening merchant relationships," added Joe Yan.

Wish said that in the first half of this year, it implemented a flat shipping rate for all eligible orders to improve customer experience and drive business development. In addition to the flat shipping rate plan, it also offered free shipping for orders over $10 during its anniversary promotion from June 24 to July 7.

Joe Yan pointed out that the average delivery time in Wish's six major markets has been shortened by six days compared with last year. The on-time delivery rate this quarter reached 91%. In addition, the customer order cancellation rate decreased by 47% year-on-year, and the customer refund rate decreased by 30% year-on-year.

Along with the release of its Q2 earnings report, Wish also announced that the company plans to implement a restructuring plan this quarter to become a long-term profitable company, which includes laying off 255 employees, approximately 34% of the company's total workforce.

Editor ✎ Nicole/

Disclaimer: This article is copyrighted and may not be reproduced without permission.