Wish releases second quarter financial report: User net recommendation value continues to increase and the brand logo is upgraded

On August 10, Beijing time , ContextLogic, the parent company of Wish, a global mobile e-commerce platform, released its quarterly financial results ending June 30, 2022. The financial report shows that Wish's revenue in the second quarter was US$134 million. In the second quarter, Wish's major improvements in consumer experience, delivery time, and customer service led to a continuous increase in the user's Net Promoter Score (NPS) in the second quarter and a decrease in the product refund rate. In addition, Wish announced that it will continue to focus on strategic transformation, continue to implement the Wish brand reshaping plan, explore the potential of women's fashion categories, and recently unveiled a new brand logo to the public - the new logo has changed the past Wish blue and replaced it with a bolder and more brand-influential visual system.

According to the financial report, in the second quarter of 2022, Wish's core platform market revenue was US$54 million; Product Boost revenue was US$11 million; logistics revenue was US$69 million; adjusted EBITDA was a loss of US$58 million, a year-on-year narrowing of 13%; net loss was US$90 million, a year-on-year narrowing of 19% - of which the net loss per share was US$0.13, which was a significant improvement from the net loss per share of US$0.18 in the same period of 2021. At the same time, Wish's cash flow from operating activities was negative US$67 million, a significant improvement from the negative US$205 million in the second quarter of fiscal 2021.

Consolidated financial data for the second quarter of 2022

The following table sets forth the unaudited GAAP and non-GAAP financial highlights for the respective periods:

Revenue

(In millions, except percentages; data unaudited)

Other financial data

(In millions, except percentages; data unaudited)

* Denotes non- GAAP measures. See the note titled “Use of Non-GAAP Financial Measures” below for more information on our presentation of non-GAAP measures.

Forward Guidance - Q3 2022

(In millions, except percentages; data are unaudited)

We expect the following Adjusted EBITDA financial results for the periods described below:

* Wish has not provided quantitative reconciliations of forecasted Adjusted EBITDA to forecasted GAPP Net Income (Loss) of Total Adjusted EBITDA or forecasted GAPP Income (Loss) before taxes to segment Adjusted EBITDA in this earnings release because accurate calculation of certain reconciliation items is beyond the Company’s reasonable efforts, including, but not limited to, income taxes, which are directly impacted by the unpredictable fluctuations in the Company’s stock price.

Fiscal Year 2022 Third Quarter Financial Guidance

● Adjusted EBITDA: Adjusted EBITDA loss is expected to be between $(110) million and $(130) million.

"We remain focused on transforming our business and have made significant progress in user experience, delivery time, and customer service, which has resulted in improved NPS scores and reduced product returns," said Vijay Talwar, CEO of Wish. "While changes in consumer spending habits caused by macroeconomic factors may have some adverse effects on our accelerated growth plans in the second half of 2022, we remain confident that we will continue to implement exciting new initiatives, including Wish's rebranding and the launch of a revamped women's apparel category."

It is understood that Wish has announced its transformation plan in 2021 and launched a series of management initiatives. During this period, Wish formed a new executive team, including Vijay Talwar, Vivian Liu, Tarun Jain, etc. The management team took multiple measures to fully focus on the strategic transformation plan.

To further improve the two-way service experience for merchants and users on the Wish platform, Wish has launched a more comprehensive and detailed merchant incentive program - Wish Standards. Merchants are evaluated from multiple dimensions such as product quality, transportation experience, customer reviews, refund rate, and compliance with Wish policies. Merchants that meet the standards will receive more exposure, etc. In terms of user experience, Wish continues to explore discovery shopping, and enhances personalized shopping experience from multiple angles through a newly revised discovery shopping homepage, promotional method display, and Wish Clips short video shopping function.

In terms of brand remodeling, Wish recently announced its new brand logo, which is the first time the company has been redesigned since its establishment in 2010. The new logo has changed the previous Wish blue and replaced it with a new and fashionable visual system: the design of the upper right corner of the letter "W" in the logo maximizes the overall element sense, and it is constantly displayed as a dynamic spark, symbolizing the imagination and novel exploration ignited by Wish, representing the massive products on the Wish platform. The collision of the mysterious black main color and the novel green makes the overall presentation bolder and more vivid, and more brand influential.

Wish said, “We needed some elements to boldly illuminate the screen. As part of Wish’s ongoing efforts, our new logo aims to make Wish the preferred destination for exploring curiosity and enjoying discovery shopping. This also marks the arrival of a new era for Wish.”

Recently, Wish also announced that it has become the official sleeve partner of Leeds United Football Club for the 2022/23 season . As part of the annual agreement , Wish’s new logo will be displayed on the sleeves of Leeds United’s men’s, women’s and academy team jerseys , covering all Leeds United official jerseys and home stadiums , in order to create global brand exposure for Wish.