Wish Q3 revenue dropped 40% year-on-year! Q4 shopping season expectations are still not optimistic

Wish recently released its third-quarter performance data. The data showed that Wish's sales in the third quarter fell from $606 million a year ago to $368 million, a year-on-year decrease of nearly 40%. Despite the peak holiday shopping season, Wish predicts that its revenue in the fourth quarter will still decline.

In addition, after the data was released, Wish founder Piotr Szulczewski announced that he would step down as CEO after finding a suitable replacement.

According to data, analysts on average expected revenue of $372 million in the third quarter and $469 million in the fourth quarter, and Wish's third-quarter revenue did not meet the target. However, the loss was smaller than analysts predicted, mainly due to reduced advertising spending.

Wish Executive Chairman Jacqueline Reses said in a statement that Wish has made good progress in its strategy towards long-term growth and profitability. He said: "We are understanding which features and products are most likely to drive our entire user base to engage and purchase on Wish. We are confident that we will return to growth in the second half of 2022."

Wish’s strategic initiatives for long-term growth include:

• Launched WishStandards, a new merchant program designed to reward merchants who consistently provide an exceptional customer experience, priority placement in feeds, and commission discounts. Through the program, Wish will evaluate merchants based on a number of performance metrics, including product quality, shipping and delivery experience, customer reviews and ratings.
• More than 12,000 new merchants have been added, including Trespass, Dermafirm and Shopango.

• Introducing “WishClips,” Wish’s next-generation video-first shopping experience.
• Wish has expanded its payment options for US users by partnering with Klarna, a leading global retail banking, payment and shopping service, to provide flexible payment options through its buy now, pay later product.

• Reprioritize resources across the organization to focus on executing the turnaround strategy.
• Close 1P and B2B wholesale products and suspend local sales, reallocate resources to focus on core markets and merchant onboarding.
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Fourth quarter outlook

Wish expects that its fourth-quarter revenue will be lower than the third quarter despite the holiday shopping season. This is mainly due to Wish's continued reduction in advertising spending during the quarter, which resulted in higher advertising revenue at the beginning of the third quarter than at the beginning of the fourth quarter.

Editor ✎ Xiao Zhu/

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