Wish Q2 financial report released: demand slowed down, cost increase exceeded expectations

It is learned that Wish recently announced its second-quarter financial report data ending July 2021. The data showed that Wish's overall revenue in the second quarter fell 6% to US$656 million from US$701 million a year ago, and the figure was previously predicted to be US$723 million.

Wish's own market revenue was hit the hardest, falling 32% from $555 million to $378 million, while third-party market revenue fell 29% from $600 million to $428 million. Logistics revenue grew 126%, and Wish's merchant advertising tool ProductBoost grew 11% to $45 million to $50 million.

In addition, Wish's daily user activity and active buyers fell 13% in the second quarter, app installations fell 13%, and the average time buyers spent on its platform fell 15% month-on-month. While user engagement declined, Wish's advertising costs to drive transaction volume on its app also grew more than expected.

Wish said: "Year-over-year comparisons in 2021 were relatively unfavorable due to the significant increase in mobile usage in 2020. At the same time, iOS caused more advertisers to shift their spending to Android devices, which brought more competition because most of our advertising marketing is concentrated on Android devices, which is the preferred device for most of our users."

Wish said it will shift its focus to products and merchants with positive reviews and add more well-known brand merchants, in addition to focusing on categories such as apparel, home goods and gadgets.

However, Wish pointed out that these measures will take some time to work. At the same time, Wish will also cut digital advertising spending and focus on executing more efficient cost expenditures. Wish said that with the reduction in digital advertising spending, revenue is expected to decline further in the third quarter, and it expects an adjusted loss in the third quarter to be between $70 million and $65 million.

Editor ✎ Xiao Zhu/

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