Wish's third-quarter revenue plummeted 39%, and its founder announced his resignation

Recently, the American version of "Pinduoduo" Wish announced its third-quarter financial results as of September 30, 2021.

According to the financial report, Wish's revenue in the third quarter was US$368 million, down 39% from the same period last year and 44% from the second quarter of this year, with a net loss of US$64 million. As of September 30, Wish had a total revenue of US$1.796 billion and a net loss of US$303 million in 2021. The total number of monthly active users fell 40% year-on -year to 60 million, and the number of active buyers in the last 12 months fell 32% year-on-year to 46 million.

By revenue source, Wish's market revenue fell 55% year-on-year to $183 million, mainly due to a decrease in orders related to a decrease in active buyers. Total product revenue fell 24% year-on-year to $37 million. Due to a decrease in the total number of packages, Wish's logistics revenue in the third quarter was $148 million, a year-on-year decrease of 3%.

Meanwhile, Wish announced that it added more than 12,000 new merchants to its platform in the third quarter.

"We are making good progress in moving Wish in a positive direction toward long-term growth and profitability," said Jacqueline Reses, executive chairwoman of Wish. "From a financial perspective, we exceeded our bottom line expectations , driven in part by greater efficiencies and reduced digital advertising spend. "

Although Wish did not give an expected revenue for the fourth quarter, it said that despite entering the holiday shopping season, the fourth quarter's revenue will still be lower than the third quarter. This is mainly due to Wish's continued reduction in advertising spending, which will lead to a continued decline in quarterly revenue in the fourth quarter.

Jacqueline Reses said: "We are learning which features and products are most likely to drive users to make purchases on Wish. We are confident that we will resume growth in the second half of 2022."

Along with the financial report, Wish’s founder announced that Piotr   The company announced that Szulczewski will resign from the position of CEO . To ensure an orderly transition, Szulczewski will continue to serve as CEO until the company's board of directors appoints a successor , and the final departure time will be no later than February 1, 2022. At present, the company has hired a headhunting company to assist in recruiting a new CEO.

In the past year, Wish has seen frequent changes in senior management. Last month, former Shutterfly executive Vivian   Liu was named Wish’s chief financial officer earlier this year, following the appointment of former Google executive Farhang   Kassaei and Tarun   Jain was appointed chief technology officer and chief product officer, respectively.

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