Wish Reports 42% Decline in Q2 Revenue, Blames Competition
BY PYMNTS | AUGUST 3, 2023
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The eCommerce giant ContextLogic Inc., better known as Wish, reported a 42% drop in total revenue year-over-year in its second-quarter earnings Thursday (Aug. 3), blaming competition and a challenging business environment for the decline.
According to the company’s earnings call with analysts, it closed out Q2 with total revenue of $78 million. In addition to the decline in revenue, Wish reported a net loss of $80 million for the quarter ending June 30.
That compared to a net loss of $90 million in the second quarter of 2022. Net loss per share was $3.38, compared to a net loss of $4.05 per share in the same period last year.
Wish CEO Joe Yan said, “Our second quarter results reflect a continuingly challenging operating environment…We experienced macro and competitive pressure on our top-line performance with total revenues declining 42% year-over-year.”
He added, “We acknowledge that competition in our industry has intensified, and we expect this trend to continue.”
Wish implemented a flat-rate shipping initiative on all eligible orders to improve customer experience and drive business building in the first half of the year, according to company.
On top of the flat-rate shipping program, Wish also offered free shipping over $10 during its Wish anniversary merchandise event running from June 24 to July 7.
“Our first pillar is improving the customer experience,” Yan said. “Our second pillar is deepening our merchant relationships. Our third pillar is achieving operational excellence.”
Yan also noted that the average time to door in six of their major markets improved by six days compared to last year. On-time delivery rate was also 91% for the quarter. He said the customer order cancellation rate declined by 47%, and the customer refund rate dropped by 30% year-over-year.
Wish announced that it planned to implement a restructuring plan during the quarter to become a profitable company in the long term, which included reducing its global workforce by approximately 255 positions — representing about 34% of its headcount.
Wish was down 14.44% in after-hours trading, with shares selling for $7.17.
