Wish's net loss narrowed by 53% in the first quarter! Platform customer satisfaction improved

It is learned that on May 5, Wish announced its first quarter performance data for 2022. Unlike other platforms, Wish has not reported net profit since the second quarter of 2019.

Wish Marketplace's parent company reported sales of $189 million in the first fiscal quarter of 2022, down 76% year-over-year. Wish Marketplace posted a net loss of $60 million in the first quarter, its 11th consecutive quarter of losses, but up 53% year-over-year from a net loss of $128 million in the first quarter of 2021.

The San Francisco-based parent company, ContextLogic Inc., has seen its market value shrunk significantly in recent years. In December 2020, the company's initial public offering valued Wish at approximately $17 billion, while its current market value is approximately $1.12 billion.

In the three months ended March 31, Wish reported:

Net loss of $60 million, a 53% decrease from a net loss of $128 million a year ago.

Total revenue was $189 million, down 75.6% from the $772 million in revenue reported in the first quarter of 2021.

Cash, cash equivalents and restricted cash on hand totaled $767 million. This was down 52.7% from $1.62 billion a year ago.

Wish Marketplace and China Blockade

Wish is mostly sold by Chinese merchants, and the market is flooded with a large number of low-priced goods, so it is called "American Pinduoduo". Due to the low prices, the quality of the goods is also low. Because Wish failed to strengthen supervision of the quality of the platform's products, it has lost a large number of its customers.

Wish has long struggled with quality issues and customer satisfaction. Deliveries from Wish sellers in China take quite a while, and the supply chain crisis and the pandemic have led to further slowdowns. But Wish says it has made progress in delivery and customer service, and its Net Promoter Score (NPS), which measures customer satisfaction, has improved from -66 in May 2021 to -27 today.

“We’ve seen a turnaround in just a few months, including a doubling of our NPS and a reduction in post-shipment refunds,” Wish CEO Vijay Talwar said in a written statement. “These encouraging signs, particularly the improvement in our NPS score, give us confidence that consumers will return to the Wish platform as we begin to increase advertising spend in June,” he added.

Wish, which has about 200 employees in Shanghai, managed to divert 90% of delayed shipments to other ports in March as China's lockdown spread and shortages intensified.

Wish launched a redesigned shopping app for Android phones during the quarter. An app for Apple’s operating system will be available before the end of the second quarter, Talwar said.

Editor✎ Ashley/

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