Wish's third-quarter revenue fell by more than 60%! Net loss widened to $124 million!

It is learned that recently, Wish released its third-quarter financial report as of September 30, 2022. The report shows that due to the downturn in the core market, the company's revenue was weak this quarter and its net loss widened to US$124 million.

Third quarter performance

• Revenue was $125 million, down 66% year-over-year
• Net loss of $124 million, compared with a net loss of $64 million in the same period last year
• Net loss per share was $0.18, compared to a loss per share of $0.10 in the same period last year.
• Adjusted EBITDA loss was $95 million, compared to a loss of $30 million in the same period last year
• Core market revenue was $40 million, down 78% year-over-year
• ProductBoost revenue was $11 million, down 70% year-over-year
• Logistics revenue was $74 million, down 50% year-on-year
• Free cash flow was negative $100 million as of the third quarter, compared to negative $344 million in the same period last year.

Although quarterly revenue declined, Wish's end-to-end shipping solutions, improved shipping efficiency, and logistics strategies to optimize average door-to-door time have paid off. Wish interim CEO Joe Yan said: "As our business is transforming, we are beginning to see positive operating results, including consecutive quarterly growth in order volume, a decline in refund rates and customer order cancellation rates, and an on-time delivery rate of approximately 92%."

It is learned that in the third quarter of this year, Wish's LTM active buyers reached 16 million and MAUs (monthly active users) reached 24 million, down 65% and 60% year-on-year respectively. This decline is mainly due to the cumulative reduction in Wish's marketing expenses over the past year.

Performance Outlook

Wish expects reduced advertising spending and weak logistics business to have a negative impact on upcoming results. For the fourth quarter of fiscal 2022, the company forecasts adjusted EBITDA to be between $90 million and $110 million.

Editor ✎ Nicole/

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