Fourth-Quarter Fiscal 2023 Financial Highlights
- Revenues: Revenues were
$53 million , a decrease of 57% YoYCore Marketplace revenues were$15 million , down 58% YoY- Product Boost revenues were
$5 million , down 50% YoY - Logistics revenues were
$33 million , down 57% YoY
- Net Loss: Net Loss was
$68 million , compared to a net loss of$110 million in the fourth quarter of fiscal 2022- Net Loss per share was
$2.82 , compared to a loss of$4.80 per share in the fourth quarter of fiscal 2022
- Net Loss per share was
- Adjusted EBITDA: Adjusted EBITDA(1) was a loss of
$54 million , compared to a loss of$95 million in the fourth quarter of fiscal 2022 - Cash Flow: Cash flows used in operating activities were
$75 million - Free Cash Flow(1) was
$(75) million , compared to$(109) million in the fourth quarter of fiscal 2022
- Free Cash Flow(1) was
Preliminary
- Revenues: Revenues were
$14 million . - Adjusted EBITDA: Adjusted EBITDA was a loss of
$13 million .
This information reflects our preliminary estimates with respect to such results based on currently available information, is not a comprehensive statement of our financial results and is subject to completion of our financial closing procedures. Our actual results may differ materially from these estimates. See “Forward-Looking Statements” for additional information.
Fourth Quarter and Fiscal Year Ended 2023 Consolidated Financials
The following tables include unaudited GAAP and non-GAAP financial highlights for the periods presented:
Revenue
(in millions, except percentages; unaudited)
Three Months Ended | Year Ended | ||||||||||||||||||||||
2023 | 2022 | YoY% | 2023 | 2022 | YoY% | ||||||||||||||||||
Core marketplace revenue | $ | 15 | $ | 36 | (58 | )% | $ | 86 | $ | 220 | (61 | )% | |||||||||||
ProductBoost revenue | 5 | 10 | (50 | )% | 24 | 46 | (48 | )% | |||||||||||||||
Marketplace revenue | 20 | 46 | (57 | )% | 110 | 266 | (59 | )% | |||||||||||||||
Logistics revenue | 33 | 77 | (57 | )% | 177 | 305 | (42 | )% | |||||||||||||||
Revenue | $ | 53 | $ | 123 | (57 | )% | $ | 287 | $ | 571 | (50 | )% |
Other Financial Data
(in millions, except percentages; unaudited)
Three Months Ended | Year Ended | ||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||
Net loss | $ | (68 | ) | $ | (110 | ) | $ | (317 | ) | $ | (384 | ) | |||
% of Revenue | (128 | )% | (89 | )% | (110 | )% | (67 | )% | |||||||
Adjusted EBITDA(1) | $ | (54 | ) | $ | (95 | ) | $ | (236 | ) | $ | (288 | ) | |||
% of Revenue | (102 | )% | (77 | )% | (82 | )% | (50 | )% |
(1) | Indicates non-GAAP metric. See below for more information regarding our presentation of non-GAAP metrics in the section titled: “Use of Non-GAAP Financial Measures.” |
Previously Announced Transaction
On
Following closing of the transaction,
The Company expects to complete the transaction in the second quarter of 2024, subject to the approval of ContextLogic’s shareholders and other customary closing conditions. The transaction is not subject to any financing contingency. As part of the agreement,
In light of the pending transaction,
First Quarter Fiscal 2024 Financial Guidance
Due to the pending transaction,
About Wish
Wish brings an affordable and entertaining shopping experience to millions of consumers around the world. Since our founding in
Use of Non-GAAP Financial Measures
We provide Adjusted EBITDA, a non-GAAP financial measure that represents our net income (loss) adjusted to exclude: interest and other income (expense), net (which includes foreign exchange gain or loss, foreign exchange forward contracts gain or loss and gain or loss on one-time non-operating transactions); provision or benefit for income taxes; depreciation and amortization; stock-based compensation expense and related payroll taxes; lease impairment related expenses; and other items. Additionally, in this news release, we present Adjusted EBITDA Margin, a non-GAAP financial measure that represents Adjusted EBITDA divided by revenue. The reconciliation between historical GAAP and non-GAAP results of operations is provided below. Our management uses Adjusted EBITDA in conjunction with GAAP and other operating performance measures as part of its overall assessment of the company’s performance for planning purposes, including the preparation of its annual operating budget, to evaluate the effectiveness of its business strategies and to communicate with its board of directors concerning its financial performance. Adjusted EBITDA should not be considered as an alternative financial measure to net loss, which is the most directly comparable financial measure calculated in accordance with GAAP, or any other measure of financial performance calculated in accordance with GAAP. We also provide Free Cash Flow, a non-
Forward-Looking Statements
This news release contains forward-looking statements within the meaning of the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact could be deemed forward-looking, including, but not limited to, statements regarding the completion and timing of the Asset Sale, the amount of net proceeds from the Asset Sale, the amount of
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 Annual Report on Form 10-K for the fiscal year ended
The preliminary unaudited information relating to our financial results for the month ended
A Note About Metrics
The numbers for some of our metrics, including MAUs and LTM Active Buyers, are calculated and tracked with internal tools, which are not independently verified by any third party. We use these metrics to assess the growth and health of our overall business. While these numbers are based on what we believe to be reasonable estimates of our user or merchant base for the applicable period of measurement, there are inherent challenges in measurement as the methodologies used require significant judgment and may be susceptible to algorithm or other technical errors. In addition, we regularly review and adjust our processes for calculating metrics to improve their accuracy, and our estimates may change due to improvements or changes in technology or our methodology.
Consolidated Balance Sheets
(in millions)
(unaudited)
As of | As of | |||||||
2023 | 2022 | |||||||
Assets | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 238 | $ | 506 | ||||
Marketable securities | 144 | 213 | ||||||
Funds receivable | 7 | 14 | ||||||
Prepaid expenses and other current assets | 21 | 44 | ||||||
Total current assets | 410 | 777 | ||||||
Property and equipment, net | 4 | 9 | ||||||
Right-of-use assets | 5 | 9 | ||||||
Other assets | 4 | 4 | ||||||
Total assets | $ | 423 | $ | 799 | ||||
Liabilities and Stockholders’ Equity | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 30 | $ | 53 | ||||
Merchants payable | 74 | 120 | ||||||
Refunds liability | 2 | 6 | ||||||
Accrued liabilities | 90 | 130 | ||||||
Total current liabilities | 196 | 309 | ||||||
Lease liabilities, non-current | 6 | 13 | ||||||
Other liabilities, non-current | 4 | — | ||||||
Total liabilities | 206 | 322 | ||||||
Stockholders’ equity | 217 | 477 | ||||||
Total liabilities and stockholders’ equity | $ | 423 | $ | 799 | ||||
Consolidated Statements of Operations
(in millions, except per share data)
(unaudited)
Three Months Ended | Year Ended | ||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||
Revenue | $ | 53 | $ | 123 | $ | 287 | $ | 571 | |||||||
Cost of revenue(1) | 44 | 97 | 228 | 405 | |||||||||||
Gross profit | 9 | 26 | 59 | 166 | |||||||||||
Operating expenses: | |||||||||||||||
Sales and marketing(1) | 32 | 73 | 143 | 254 | |||||||||||
Product development(1) | 25 | 40 | 152 | 194 | |||||||||||
General and administrative(1) | 24 | 30 | 92 | 116 | |||||||||||
Total operating expenses | 81 | 143 | 387 | 564 | |||||||||||
Loss from operations | (72 | ) | (117 | ) | (328 | ) | (398 | ) | |||||||
Other income, net: | |||||||||||||||
Interest and other income, net | 3 | 5 | 16 | 15 | |||||||||||
Loss before provision for income taxes | (69 | ) | (112 | ) | (312 | ) | (383 | ) | |||||||
Provision for income taxes | (1 | ) | (2 | ) | 5 | 1 | |||||||||
Net loss | (68 | ) | (110 | ) | (317 | ) | (384 | ) | |||||||
Net loss per share, basic and diluted | $ | (2.82 | ) | $ | (4.80 | ) | $ | (13.36 | ) | $ | (17.13 | ) | |||
Weighted-average shares used in computing net loss per share, basic and diluted | 24,119 | 22,933 | 23,732 | 22,415 | |||||||||||
(1) Includes the following stock-based compensation expense:
Three Months Ended | Year Ended | |||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||
Cost of revenue | $ | - | $ | 3 | $ | 3 | $ | 7 | ||||||||
Sales and marketing | 1 | 1 | 4 | 6 | ||||||||||||
Product development | 5 | 9 | 36 | 50 | ||||||||||||
General and administrative | 4 | 6 | 21 | 9 | ||||||||||||
Total stock-based compensation | $ | 10 | $ | 19 | $ | 64 | $ | 72 | ||||||||
Consolidated Statements of Cash Flows
(in millions)
(unaudited)
Three Months Ended | Year Ended | ||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||
Cash flows from operating activities: | |||||||||||||||
Net loss | $ | (68 | ) | $ | (110 | ) | $ | (317 | ) | $ | (384 | ) | |||
Adjustments to reconcile net loss to net cash used in operating activities: | |||||||||||||||
Noncash inventory write downs | — | — | — | 3 | |||||||||||
Depreciation and amortization | 1 | 1 | 4 | 6 | |||||||||||
Noncash lease expense | — | 1 | 3 | 6 | |||||||||||
Impairment of lease assets and property and equipment | — | — | 1 | 11 | |||||||||||
Stock-based compensation expense | 10 | 19 | 64 | 72 | |||||||||||
Net (accretion) amortization of discounts and premiums on marketable securities | (1 | ) | — | (7 | ) | — | |||||||||
Other | — | 3 | 1 | — | |||||||||||
Changes in operating assets and liabilities: | |||||||||||||||
Funds receivable | (2 | ) | (1 | ) | 6 | 3 | |||||||||
Prepaid expenses, other current and noncurrent assets | — | (3 | ) | 16 | (1 | ) | |||||||||
Accounts payable | (5 | ) | (3 | ) | (22 | ) | (13 | ) | |||||||
Merchants payable | (3 | ) | (1 | ) | (46 | ) | (65 | ) | |||||||
Accrued and refund liabilities | (6 | ) | (13 | ) | (38 | ) | (49 | ) | |||||||
Lease liabilities | (2 | ) | (2 | ) | (7 | ) | (8 | ) | |||||||
Other current and noncurrent liabilities | 1 | — | 1 | (3 | ) | ||||||||||
Net cash used in operating activities | (75 | ) | (109 | ) | (341 | ) | (422 | ) | |||||||
Cash flows from investing activities: | |||||||||||||||
Purchases of property and equipment and development of internal-use software | — | — | (3 | ) | (2 | ) | |||||||||
Purchases of marketable securities | (74 | ) | (65 | ) | (313 | ) | (368 | ) | |||||||
Maturities of marketable securities | 73 | 103 | 390 | 321 | |||||||||||
Other | — | — | — | 2 | |||||||||||
Net cash provided by (used) in investing activities | (1 | ) | 38 | 74 | (47 | ) | |||||||||
Cash flows from financing activities: | |||||||||||||||
Proceeds from issuance of common stock through employee equity incentive plans | — | — | — | 1 | |||||||||||
Payments of taxes related to RSU settlement and cashless exercise of stock options | — | (13 | ) | (5 | ) | (23 | ) | ||||||||
Net cash used in financing activities | — | (13 | ) | (5 | ) | (22 | ) | ||||||||
Foreign currency effects on cash, cash equivalents and restricted cash | 4 | 3 | (3 | ) | (14 | ) | |||||||||
Net decrease in cash, cash equivalents and restricted cash | (72 | ) | (81 | ) | (275 | ) | (505 | ) | |||||||
Cash, cash equivalents and restricted cash at beginning of period | 310 | 594 | 513 | 1,018 | |||||||||||
Cash, cash equivalents and restricted cash at end of period | $ | 238 | $ | 513 | $ | 238 | $ | 513 | |||||||
Reconciliation of cash, cash equivalents, and restricted cash to the consolidated balance sheets: | |||||||||||||||
Cash and cash equivalents | $ | 238 | $ | 506 | $ | 238 | $ | 506 | |||||||
Restricted cash included in prepaid and other current assets in the consolidated balance sheets | — | 7 | — | 7 | |||||||||||
Total cash, cash equivalents and restricted cash | $ | 238 | $ | 513 | $ | 238 | $ | 513 | |||||||
Supplemental cash flow disclosures: | |||||||||||||||
Cash paid for income taxes, net of refunds | $ | — | $ | — | $ | 1 | $ | 6 |
Reconciliation of GAAP Net Loss to Non-GAAP Adjusted EBITDA
(in millions, except percentages)
(unaudited)
Three Months Ended | Year Ended | |||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||
Revenue | $ | 53 | $ | 123 | $ | 287 | $ | 571 | ||||||||
Net loss | (68 | ) | (110 | ) | (317 | ) | (384 | ) | ||||||||
Net loss as a percentage of revenue | (128 | )% | (89 | )% | (110 | )% | (67 | )% | ||||||||
Excluding: | ||||||||||||||||
Interest and other income, net | (3 | ) | (5 | ) | (16 | ) | (15 | ) | ||||||||
Provision for income taxes | (1 | ) | (2 | ) | 5 | 1 | ||||||||||
Depreciation and amortization | 1 | 1 | 4 | 6 | ||||||||||||
Stock-based compensation expense and related employer payroll taxes(1)(2) | 14 | 19 | 68 | 74 | ||||||||||||
Restructuring and other discrete items(3) | — | — | 13 | 29 | ||||||||||||
Impairment of lease assets and property and equipment(4) | — | — | 4 | — | ||||||||||||
Strategic alternatives expenses(5) | 3 | — | 3 | — | ||||||||||||
Recurring other items | — | 2 | — | 1 | ||||||||||||
Adjusted EBITDA | (54 | ) | (95 | ) | (236 | ) | (288 | ) | ||||||||
Adjusted EBITDA margin | (102 | )% | (77 | )% | (82 | )% | (50 | )% | ||||||||
(1) | Total amount for the year ended |
(2) | Total stock-based compensation related employer payroll taxes for the year ended |
(3) | Total amount for the year ended |
(4) | Impairment of lease assets and property and equipment unrelated to restructuring activities. |
(5) | Our Board has initiated a process to explore a range of strategic alternatives to maximize value for our stockholders as disclosed in our 8-K filed with the |
Reconciliation of GAAP
(in millions)
(unaudited)
Three Months Ended | Year Ended | |||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||
Net cash used operating activities | $ | (75 | ) | $ | (109 | ) | $ | (341 | ) | $ | (422 | ) | ||||
Less: | ||||||||||||||||
Purchases of property and equipment and development of internal-use software | — | — | 3 | 2 | ||||||||||||
Free Cash Flow | $ | (75 | ) | $ | (109 | ) | $ | (344 | ) | $ | (424 | ) | ||||
Contacts
Investor Relations:
ir@wish.com
Media contacts:
press@wish.com
Source: Wish
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