Wish releases Q4 2022 results: revenue of US$123 million, a year-on-year decrease of 57%!

It is learned that recently, ContextLogic, the parent company of the US e-commerce platform Wish, announced its financial results for the fourth quarter and full year of 2022. Wish's revenue declined in the fourth quarter as inflation dragged down consumer purchasing power.

"Consumers are suffering from the sharp rise in energy and food prices, which has led to a reduction in discretionary spending across regions," said Joe Yan, CEO of Wish. "We are seeing a change in consumer purchasing habits, especially among low-income households."

The financial report shows that Wish's revenue in the fourth quarter of 2022 was US$123 million, a year-on-year decrease of 57%. Among them, the core market revenue was US$36 million, a year-on-year decrease of 74%; Product Boost revenue was US$10 million, a year-on-year decrease of 64%; logistics revenue was US$77 million, a year-on-year decrease of 37%.

The company's net loss in the fourth quarter of 2022 was $77 million, compared with a net loss of $58 million in the same period last year; net loss per share was $0.16, compared with a loss per share of $0.09 in the same period last year; and adjusted EBITDA loss was $95 million, compared with an EBITDA loss of $23 million in the same period last year.

In terms of full-year performance, the company's revenue for the full year of 2022 was US$571 million, a year-on-year decrease of 73%; the net loss was US$380 million, while the net loss in 2021 was US$360 million, and the adjusted EBITDA loss was US$288 million, while the EBITDA loss in 2021 was US$199 million.

Wish Chief Financial Officer and Chief Operating Officer Vivian Liu said the slower growth in the fourth quarter and full year 2022 was due in part to new pricing transparency and lower digital advertising spending at a time when costs were soaring.

It is understood that Wish's total advertising expenditure in the fourth quarter fell 9% month-on-month and 12% year-on-year. For the whole year of 2022, Wish's total advertising expenditure was about 20% of that in 2021.

Regarding performance outlook, Wish expects adjusted EBITDA to be a loss in the first quarter of 2023, ranging from US$70 million to US$80 million. In order to continuously improve profitability and achieve sustainable growth, Wish said that in 2023 it will increase resource integration efforts, continue to focus on unit economic benefits to ensure financial stability, and improve operational efficiency with a "multi-dimensional combination punch". In addition, Wish will also strive to improve retention through user repurchases.

Editor ✎ Nicole/

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