Wish Reports Fourth Quarter and Fiscal Year 2021 Financial Results|||

SAN FRANCISCO–(Concern WIRE)–$WISH–ContextLogic Inc. (d/b/a Wish) (Nasdaq: WISH), ane of the largest mobile ecommerce platforms, today reported its financial results for the quarter and fiscal twelvemonth ended Dec 31, 2021.

Fourth Quarter Financial 2021 Financial Highlights

  • Revenues: Revenues were $289 meg, a subtract of 64% YoY. Core Marketplace revenues were $139 million, ProductBoost revenues were $28 1000000, and Logistics revenues were $122 million, down YoY by 74%, 55%, and twoscore%, respectively.
  • Adjusted EBITDA: Adjusted EBITDA was a loss of $23 million, an improvement of 81% YoY.
  • Internet Loss: Net Loss was $58 1000000, a xc% YoY improvement. Cyberspace Loss per share was $0.09, compared to a loss of $3.04 per share in the fourth quarter of fiscal 2020.
  • Cash Menstruum: Cash flows from operating activities were negative $49 one thousand thousand, compared to negative $24 million in the 4th quarter of fiscal 2020. Free Cash Flow was negative $l million, compared to negative $25 million in the quaternary quarter of financial 2020.

“The financial wellness of our business and the future growth of Wish is dependent on improving our user experience, deepening our merchant relationships, and achieving organizational efficiencies. When we get these iii foundational pillars fortified, we await to bulldoze the visitor into a new era of growth,” said Vijay Talwar, Wish CEO.

“Equally office of our turnaround strategy, we have made the difficult conclusion to reduce our global workforce. We are besides making other toll reductions in order to right-size the business concern. These initiatives are critical to the long-term success and sustainability of Wish,” Talwar concluded.

4th-Quarter 2021 and Financial Year 2021 Consolidated Financials

The following tables include unaudited GAAP and non-GAAP fiscal highlights for the periods presented:

Acquirement

(in millions, except percentages; unaudited)

Iii Months Ended Year Ended
December 31, December 31,

2021

2020

YoY %

2021

2020

YoY %

Revenue

$

289

$

794

(64

)%

$

ii,085

$

ii,541

(eighteen

)%

Cadre marketplace revenue

$

139

$

527

(74

)%

$

1,177

$

i,827

(36

)%

ProductBoost revenue

$

28

$

62

(55

)%

$

165

$

200

(18

)%

Marketplace revenue

$

167

$

589

(72

)%

$

1,342

$

2,027

(34

)%

Logistics acquirement

$

122

$

205

(40

)%

$

743

$

514

45

%

Other Financial Data
(in millions, except percentages; unaudited)

Three Months Ended Year Ended
December 31, December 31,

2021

2020

2021

2020

Net loss

$

(58

)

$

(569

)

$

(361

)

$

(745

)

% of Acquirement

(20

)%

(72

)%

(17

)%

(29

)%

Adjusted EBITDA*

$

(23

)

$

(118

)

$

(199

)

$

(217

)

% of Revenue

(8

)%

(15

)%

(10

)%

(nine

)%

* Indicates non-GAAP metric. Come across below for more than information regarding our presentation of not-GAAP metrics in the department titled: “Use of Not-GAAP Fiscal Measures.”

Forward Looking Guidance – Q1 2022

(in millions, except percentages, unaudited)

We expect the following financial results for Adjusted EBITDA in the flow presented below:

Three Months Ended

March 31, 2022

Adjusted EBITDA*

($70)

to

($60)

% Growth YoY

11%

24%

*
Wish has not provided a quantitative reconciliation of forecasted Adjusted EBITDA to forecasted GAAP net income (loss) for full Adjusted EBITDA or to forecasted GAAP income (loss) before income taxes for segment Adapted EBITDA inside this earnings release considering the company is unable, without making unreasonable efforts, to calculate certain reconciling items with conviction. These items include but are not limited to income taxes which are direct impacted past unpredictable fluctuations in the market price of the company’s stock.

Additional Disclosures

February 2022 Restructuring Plan

On Feb 24, 2022, the company’s Board of Directors canonical a restructuring programme to refocus the company’s operations to back up sustainable long-term growth, better marshal resource, and amend operational efficiencies. The company expects the restructuring plan to be substantially implemented by the end of fiscal year 2022.

The restructuring programme includes i) reducing the company’s headcount by approximately 15% (or approximately 190 positions), 2) exiting various facility leases, and 3) reducing and realigning vendor expenditures. In connection with the restructuring plan, the company estimates that information technology will incur one-time charges of $3 million for employee severance and other personnel reduction costs and a maximum of $21 1000000 consisting of costs to exit sure company facility leases and related noncash impairments of lease avails and holding and equipment. The visitor anticipates that related severance payments volition occur by the cease of the second quarter of 2022. The company expects to achieve an approximate range of $32-37 1000000 in annualized cost savings as a consequence of the restructuring plan.

Material Weaknesses

During the preparation and the audit of the company’due south consolidated financial statements for the year ended December 31, 2021, management and the company’s contained registered public accounting firm identified two textile weaknesses in the company’s internal controls over financial reporting: i) the company did not blueprint and maintain effective controls over information engineering general controls and two) the visitor did non fully implement components of the COSO framework. The management team is developing a remediation plan. Nosotros will further address and explain these two material weaknesses in our 10-Chiliad filing.

Briefing Call & Webcast Information

Wish will host a alive conference phone call to discuss the results today at 2:00 p.k. PT / 5:00 p.m. ET. A link to the live webcast and recorded replay of the conference telephone call will be available on the investor relations section of Wish’southward corporate website. The alive call may too be accessed via phone at (833) 664-1138 cost-complimentary domestically and at (470) 414-9349 internationally. Delight reference conference ID: 6055448.

About Wish

Wish brings an affordable and entertaining shopping experience to millions of consumers effectually the earth. Since our founding in San Francisco in 2010, we have get one of the largest global ecommerce platforms, connecting millions of value-conscious consumers to over one-half a one thousand thousand merchants globally. Wish combines technology and data science capabilities and an innovative discovery-based mobile shopping experience to create a highly-visual, entertaining, and personalized shopping experience for its users. For more information virtually the company or to download the Wish mobile app, visit www.wish.com or follow @Wish on Facebook, Instagram and TikTok or @WishShopping on Twitter and YouTube.

Employ of Non-GAAP Fiscal Measures

We provide Adjusted EBITDA, a non-GAAP financial measure that represents our internet income (loss) adjusted to exclude: interest and other income (expense), cyberspace (which includes foreign exchange gain or loss, foreign exchange forrad contracts gain or loss and proceeds or loss on one-time non-operating transactions); provision or do good for income taxes; depreciation and amortization; stock-based compensation expense and related payroll taxes; charter impairment related expenses; remeasurement of redeemable convertible preferred stock warrant liability; and other items. Additionally, in this news release, nosotros nowadays Adjusted EBITDA Margin, a non-GAAP financial mensurate that represents Adjusted EBITDA divided past revenue. The reconciliation betwixt historical GAAP and non-GAAP results of operations is provided below. Our management uses Adapted EBITDA in conjunction with GAAP and other operating performance measures equally part of its overall assessment of the company’s functioning for planning purposes, including the preparation of its annual operating budget, to evaluate the effectiveness of its business organization strategies and to communicate with its lath of directors apropos its fiscal performance. Adjusted EBITDA should not be considered as an alternative financial measure out to net loss, which is the nigh straight comparable financial measure calculated in accordance with GAAP, or any other measure of financial performance calculated in accord with GAAP.

Forrard-Looking Statements

This news release contains forrad-looking statements within the pregnant of the Safety Harbor provisions of the Individual Securities Litigation Reform Act of 1995. All statements other than statements of historical fact could be deemed forrard-looking, including, but not express to, statements regarding Wish’due south outlook including expectations with respect to revenue and adjusted EBITDA, priorities, new business strategies and restructuring efforts, including cost-saving measures, expectations regarding turnaround efforts, including a reduction in strength and real estate footprint, timelines regarding our ability to execute on new business organisation strategies and our restructuring plan, material weaknesses in internal controls and expectations regarding a remediation plan, new executive hires, including CEO transition, growth opportunities, and quotations from management. In some cases, forwards-looking statements can exist identified by terms such every bit “anticipates,” “believes,” “could,” “estimates,” “expects,” “foresees,” “forecasts,” “guidance,” “intends” “goals,” “may,” “might,” “outlook,” “plans,” “potential,” “predicts,” “projects,” “seeks,” “should,” “targets,” “will,” “would” or similar expressions and the negatives of those terms. These forward-looking statements are subject to risks, uncertainties, and assumptions. If the risks materialize or assumptions evidence incorrect, actual results could differ materially from the results unsaid by these frontward-looking statements. Risks include, but are not limited to: our ability to attract, retain and monetize users; risks associated with software updates to the platform; the effectiveness of our CEO transition; increasing requirements on collection of sales and value added taxes; the success of our execution on new business strategies; compromises in security; changes by 3rd-parties that restrict our access or ability to identify users; competition; disruption, degradation or interference with the hosting services we use and infrastructure; our financial performance and fluctuations in operating results; pressure level and fluctuation in our stock toll, including equally a upshot of brusque selling and short squeezes; challenges in our logistics programs; challenges in growing new initiatives; the effectiveness of our internal controls; the continued services of members of our senior management team; our ability to offer and promote our app on the Apple App Shop and the Google Play Store; the dual class construction of our mutual stock; our brand; legal matters; the ongoing COVID-nineteen pandemic; supply concatenation problems; and economic tension between the United states of america and Prc. New risks sally from time to time. Information technology is non possible for our management to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause bodily results to differ materially from those contained in whatever forward-looking statements nosotros may make. Farther data on these and additional risks that could touch Wish’southward results is included in its filings with the Securities and Exchange Commission (“SEC”), including its most contempo Annual Study on Form 10-K and Quarterly Report on Form x-Q, and future reports that Wish may file with the SEC from fourth dimension to time, which could cause actual results to vary from expectations. Whatever forward-looking statement made by Wish in this news release speaks only as of the day on which Wish makes it. Wish assumes no obligation to, and does not currently intend to, update any such forrard-looking statements subsequently the date of this release.

The unaudited financial results in this news release are estimates based on information currently available to Wish. While Wish believes these estimates are meaningful, they could differ from the actual amounts that the company ultimately reports in its Almanac Report on Form 10-M for the fiscal year ended December 31, 2021. Wish assumes no obligation and does not intend to update these estimates prior to filing its Annual Written report on Form 10-K for the fiscal yr concluded December 31, 2021.

A Note About Metrics

The numbers for some of our metrics, including MAUs, are calculated and tracked with internal tools, which are not independently verified by whatsoever third party. Nosotros utilise these metrics to assess the growth and health of our overall business organization. While these numbers are based on what nosotros believe to exist reasonable estimates of our user or merchant base of operations for the applicable catamenia of measurement, at that place are inherent challenges in measurement every bit the methodologies used crave significant judgment and may be susceptible to algorithm or other technical errors. In addition, we regularly review and suit our processes for computing metrics to improve their accuracy, and our estimates may alter due to improvements or changes in technology or our methodology.

ContextLogic, Inc.

Consolidated Balance Sheets

(in millions, unaudited)

As of December 31,

2021

2020

Avails
Current avails:
Cash and cash equivalents

$

1,009

$

ane,965

Marketable securities

150

164

Funds receivable

17

83

Prepaid expenses and other current assets

48

102

Full current assets

ane,224

2,314

Belongings and equipment, net

17

25

Right-of-use assets

18

43

Marketable securities

17

4

Other assets

7

xi

Total assets

$

1,283

$

2,397

Liabilities and Stockholders’ Disinterestedness
Current liabilities:
Accounts payable

$

67

$

434

Merchants payable

185

454

Refunds liability

23

77

Accrued liabilities

174

367

Full current liabilities

449

1,332

Lease liabilities, not-electric current

sixteen

38

Total liabilities

465

i,370

Stockholders’ disinterestedness

818

1,027

Total liabilities and stockholders’ equity

$

1,283

$

two,397

ContextLogic, Inc.

Consolidated Statements of Operations

(in millions except per share amounts, unaudited)

Three Months Ended Year Ended
December 31, Dec 31,

2021

2020

2021

2020

Revenue

$

289

$

794

$

ii,085

$

2,541

Cost of acquirement(1)

169

342

977

947

Gross profit

120

452

1,108

1,594

Operating expenses:
Sales and marketing(1)

89

583

one,102

one,708

Product evolution(1)

51

150

208

222

General and administrative(1)

44

230

165

295

Total operating expenses

184

963

i,475

two,225

Loss from operations

(64

)

(511

)

(367

)

(631

)

Other income (expense), internet:
Interest and other income (expense), net

5

(2

)

16

(2

)

Remeasurement of redeemable convertible preferred stock warrant liability

(55

)

(110

)

Loss before provision for income taxes

(59

)

(568

)

(351

)

(743

)

Provision for income taxes

(1

)

1

10

2

Net loss

(58

)

(569

)

(361

)

(745

)

Cyberspace loss per share, basic and diluted

$

(0.09

)

$

(3.04

)

$

(0.57

)

$

(5.87

)

Weighted-average shares used in computing cyberspace loss per share
attributable to common stockholders, basic and diluted

648

187

629

127

Three Months Ended Year Ended
December 31, December 31,

2021

2020

2021

2020

Cost of revenue

$

5

$

35

$

20

$

35

Sales and marketing

two

23

12

23

Product development

thirteen

118

59

118

General and authoritative

17

205

50

214

Full stock-based compensation expense

$

37

$

381

$

141

$

390

ContextLogic, Inc.

Consolidated Statements of Cash Flows

(in millions, unaudited)

3 Months Ended Year Ended
December 31, Dec 31,

2021

2020

2021

2020

Cash flows from operating activities:
Net loss

$

(58

)

$

(569

)

$

(361

)

$

(745

)

Adjustments to reconcile net loss to internet cash used in operating activities:
Noncash inventory write downs

1

xiii

Depreciation and acquittal

2

three

ix

12

Noncash lease expense

ane

3

xi

10

Stock-based compensation expense

37

381

141

390

Remeasurement of redeemable convertible preferred stock warrant liability

55

110

Other

4

(1

)

4

(two

)

Changes in operating assets and liabilities:
Funds receivable

x

(sixteen

)

66

12

Prepaid expenses, other current and noncurrent avails

24

(16

)

54

(2

)

Accounts payable

(iii

)

137

(367

)

263

Merchants payable

(31

)

(33

)

(269

)

(166

)

Accrued and refund liabilities

(32

)

30

(213

)

115

Lease liabilities

(iii

)

(xi

)

(10

)

Other current and noncurrent liabilities

(four

)

v

(28

)

xiii

Cyberspace greenbacks used in operating activities

(49

)

(24

)

(951

)

Cash flows from investing activities:
Purchases of property and equipment and development of internal-use software

(1

)

(one

)

(2

)

(2

)

Purchases of marketable securities

(64

)

(41

)

(299

)

(266

)

Sales of marketable securities

fifty

Maturities of marketable securities

46

130

248

433

Net cash provided by (used in) investing activities

(19

)

88

(3

)

165

Cash flows from financing activities:
Gain from initial public offering, cyberspace of underwriting discounts and commissions

1,052

1,052

Proceeds from issuance of common stock through employee equity incentive plans

7

13

Payment of taxes related to RSU settlement

(five

)

Payments to repurchase common and redeemable convertible preferred stock

(1

)

Other

(5

)

(i

)

(5

)

Net cash provided by financing activities

7

1,047

seven

1,046

Net increment (decrease) in cash, cash equivalents and restricted cash

(61

)

1,111

(947

)

1,211

Cash, cash equivalents and restricted cash at beginning of period

one,079

854

ane,965

754

Greenbacks, cash equivalents and restricted cash at end of catamenia

$

1,018

$

ane,965

$

1,018

$

ane,965

Reconciliation of cash, cash equivalents, and restricted cash to the consolidated balance sheets:
Greenbacks and cash equivalents

$

1,009

$

1,965

$

1,009

$

ane,965

Restricted cash included within prepaid expenses and other current assets in the consolidated balance sheets

9

9

Full greenbacks, cash equivalents and restricted cash

$

1,018

$

1,965

$

1,018

$

1,965

ContextLogic Inc.

Reconciliation of GAAP Net Loss to Not-GAAP Adjusted EBITDA

(in millions except percentages, unaudited)

Three Months Ended Twelvemonth Concluded
Dec 31, Dec 31,

2021

2020

2021

2020

Revenue

$

289

$

794

$

2,085

$

2,541

Internet loss

(58

)

(569

)

(361

)

(745

)

Net loss as a percentage of revenue

(20

)%

(72

)%

(17

)%

(29

)%

Excluding:
Interest and other expense (income), net

(5

)

2

(16

)

2

Provision for income taxes

(ane

)

one

10

2

Depreciation and acquittal

two

3

9

12

Stock-based compensation expense

37

381

141

390

Employer payroll taxes related to stock-based compensation expense

ii

8

9

8

Remeasurement of redeemable convertible preferred stock warrant liability

55

110

Lease termination and impairment related expenses

six

Recurring other items

1

3

4

Adjusted EBITDA

$

(23

)

$

(118

)

$

(199

)

$

(217

)

Adjusted EBITDA margin

(8

)%

(15

)%

(10

)%

(9

)%

ContextLogic Inc.

Reconciliation of GAAP Net Cash Used in Operating Activities to Non-GAAP Free Greenbacks Flow

(in millions, unaudited)

Three Months Ended

Year Ended

December 31,

Dec 31,

2021

2020

2021

2020

Cash used in operating activities

$

(49

)

$

(24

)

$

(951

)

$

Less:
Purchases of property and equipment

1

ane

2

2

Free Cash Catamenia

$

(50

)

$

(25

)

$

(953

)

$

(2

)

Non-GAAP Argument of Operations

Our presentation of non-GAAP Statement of Operations excludes the impact of stock-based compensation expense and related payroll taxes. This measure out is not a key metric used past our management and board of directors to measure operating performance or otherwise manage the business. However, we provide not-GAAP Argument of Operations as supplemental information to investors, as we believe the exclusion of stock-based bounty expense and related payroll facilitates investors’ operating performance comparisons on a catamenia-to-period basis. You should non consider non-GAAP Statement of Operations in isolation or as a substitute for assay of our results every bit reported nether GAAP.

ContextLogic Inc.

Reconciliation of GAAP Statement of Operations to Non-GAAP Statement of Operations

(in millions, unaudited)

Iii Months Ended December 31, 2021
GAAP Non-GAAP Adjustments Non-GAAP
Q4’21

(1)

(two)

Q4’21
Revenue

$

289

$

$

$

289

Cost of revenue

169

(5

)

164

Gross turn a profit

120

v

125

Operating expenses:
Sales and marketing

89

(two

)

87

Product evolution

51

(13

)

(1

)

37

Full general and authoritative

44

(17

)

(1

)

26

Total operating expenses

184

(32

)

(2

)

150

Loss from operations

(64

)

37

2

(25

)

Other expense, internet:
Interest and other expense, net

v

5

Loss before provision for income taxes

(59

)

37

ii

(20

)

Provision for income taxes

(1

)

(1

)

Cyberspace loss

$

(58

)

$

37

$

2

$

(19

)

1) Stock-based compensation

2) Payroll taxes related to stock-based compensation

Three Months Ended December 31, 2020
GAAP Non-GAAP Adjustments Non-GAAP
Q4’20

(1)

(2)

(three)

Q4’20
Acquirement

$

794

$

$

$

$

794

Cost of acquirement

342

(35

)

(1

)

306

Gross profit

452

35

1

488

Operating expenses:
Sales and marketing

583

(23

)

(2

)

558

Product development

150

(118

)

(i

)

31

General and administrative

230

(205

)

(4

)

21

Total operating expenses

963

(346

)

(vii

)

610

Loss from operations

(511

)

381

8

(122

)

Other expense, net:
Involvement and other expense, net

(ii

)

(2

)

Remeasurement of redeemable convertible preferred stock warrant liability

(55

)

55

Loss earlier provision for income taxes

(568

)

381

viii

55

(124

)

Provision for income taxes

i

one

Internet loss

$

(569

)

$

381

$

eight

$

55

$

(125

)

1) Stock-based compensation

2) Payroll taxes related to stock-based bounty

3) Remeasurement of redeemable convertible preferred stock warrant liability

Contacts

Source: https://www.dailyhostnews.com/wish-reports-fourth-quarter-and-fiscal-year-2021-financial-results

Popular:   GRAB INVESTIGATION ALERT: Robbins Geller Rudman & Dowd LLP Announces Investigation into Grab Holdings Limited f/k/a Altimeter Growth Corp. and Encourages Investors with Substantial Losses or Witnesses with Relevant Information to Contact the Firm|||