ContextLogic Inc. Reports Fourth-Quarter and Fiscal Year 2024 Financial Results
ContextLogic (NASDAQ: LOGC) reported its Q4 and fiscal year 2024 results, highlighting significant business transformations. The company secured a $75 million investment from BC Partners in convertible preferred units, with potential for an additional $75 million for acquisitions. Combined with existing $66 million in cash and $83 million in marketable securities, the company now has approximately $225 million in liquidity.
Q4 2024 financial highlights show a net loss of $2 million, significantly improved from the $68 million loss in Q4 2023. The company incurred $4 million in general and administrative expenses and earned $2 million in interest income. As of December 31, 2024, ContextLogic operates with eight full-time employees and maintains total liabilities of $5 million.
ContextLogic (NASDAQ: LOGC) ha riportato i risultati del quarto trimestre e dell'anno fiscale 2024, evidenziando significative trasformazioni aziendali. L'azienda ha ottenuto un investimento di 75 milioni di dollari da BC Partners in unità preferenziali convertibili, con la possibilità di ulteriori 75 milioni di dollari per acquisizioni. Combinato con i 66 milioni di dollari in contante esistenti e 83 milioni di dollari in titoli negoziabili, l'azienda dispone ora di circa 225 milioni di dollari in liquidità.
I risultati finanziari del Q4 2024 mostrano una perdita netta di 2 milioni di dollari, notevolmente migliorata rispetto alla perdita di 68 milioni di dollari nel Q4 2023. L'azienda ha sostenuto 4 milioni di dollari in spese generali e amministrative e ha guadagnato 2 milioni di dollari in proventi da interessi. Al 31 dicembre 2024, ContextLogic opera con otto dipendenti a tempo pieno e mantiene un totale di passività di 5 milioni di dollari.
ContextLogic (NASDAQ: LOGC) reportó sus resultados del cuarto trimestre y del año fiscal 2024, destacando transformaciones empresariales significativas. La compañía aseguró una inversión de 75 millones de dólares de BC Partners en unidades preferentes convertibles, con potencial para otros 75 millones de dólares para adquisiciones. Combinado con 66 millones de dólares en efectivo existentes y 83 millones de dólares en valores negociables, la empresa ahora tiene aproximadamente 225 millones de dólares en liquidez.
Los resultados financieros del Q4 2024 muestran una pérdida neta de 2 millones de dólares, mejorando significativamente respecto a la pérdida de 68 millones de dólares en el Q4 2023. La compañía incurrió en 4 millones de dólares en gastos generales y administrativos y ganó 2 millones de dólares en ingresos por intereses. A partir del 31 de diciembre de 2024, ContextLogic opera con ocho empleados a tiempo completo y mantiene un total de pasivos de 5 millones de dólares.
ContextLogic (NASDAQ: LOGC)는 2024 회계연도 4분기 및 연간 실적을 발표하며 중요한 사업 변화들을 강조했습니다. 이 회사는 BC Partners로부터 7,500만 달러의 전환 우선주 투자를 확보했으며, 인수 용도로 추가로 7,500만 달러를 받을 가능성이 있습니다. 기존의 6,600만 달러 현금과 8,300만 달러의 유가증권과 결합하여, 현재 약 2억 2,500만 달러의 유동성을 보유하고 있습니다.
2024년 4분기 재무 하이라이트는 200만 달러의 순손실을 보여주며, 이는 2023년 4분기 6,800만 달러의 손실에서 크게 개선된 수치입니다. 회사는 400만 달러의 일반 및 관리비용을 발생시켰고 200만 달러의 이자 수익을 올렸습니다. 2024년 12월 31일 기준으로 ContextLogic은 8명의 정직원과 함께 운영되며, 총 부채는 500만 달러입니다.
ContextLogic (NASDAQ: LOGC) a publié ses résultats du quatrième trimestre et de l'exercice 2024, mettant en avant des transformations commerciales significatives. L'entreprise a sécurisé un investissement de 75 millions de dollars de BC Partners en actions préférentielles convertibles, avec un potentiel d'un investissement supplémentaire de 75 millions de dollars pour des acquisitions. Combiné avec 66 millions de dollars en liquidités existants et 83 millions de dollars en titres négociables, l'entreprise dispose désormais d'environ 225 millions de dollars de liquidités.
Les résultats financiers du Q4 2024 montrent une perte nette de 2 millions de dollars, considérablement améliorée par rapport à la perte de 68 millions de dollars au Q4 2023. L'entreprise a engagé 4 millions de dollars de frais généraux et administratifs et a gagné 2 millions de dollars de revenus d'intérêts. Au 31 décembre 2024, ContextLogic emploie huit employés à temps plein et maintient un total de passifs de 5 millions de dollars.
ContextLogic (NASDAQ: LOGC) hat seine Ergebnisse für das vierte Quartal und das Geschäftsjahr 2024 veröffentlicht und dabei bedeutende Geschäftstransformationen hervorgehoben. Das Unternehmen sicherte sich eine Investition von 75 Millionen Dollar von BC Partners in wandelbaren Vorzugsaktien, mit der Möglichkeit, weitere 75 Millionen Dollar für Übernahmen zu erhalten. Zusammen mit den vorhandenen 66 Millionen Dollar in bar und 83 Millionen Dollar in handelbaren Wertpapieren hat das Unternehmen nun etwa 225 Millionen Dollar an Liquidität.
Die finanziellen Höhepunkte des Q4 2024 zeigen einen Nettoverlust von 2 Millionen Dollar, was eine erhebliche Verbesserung gegenüber dem Verlust von 68 Millionen Dollar im Q4 2023 darstellt. Das Unternehmen hatte 4 Millionen Dollar an allgemeinen und Verwaltungskosten und erzielte 2 Millionen Dollar an Zinserträgen. Am 31. Dezember 2024 beschäftigt ContextLogic acht Vollzeitmitarbeiter und hat Gesamtschulden von 5 Millionen Dollar.
- Significant reduction in net loss from $68M to $2M year-over-year
- Secured $75M investment from BC Partners with potential for additional $75M
- Strong liquidity position with $225M available for business investment
- Minimal liabilities of $5M against substantial cash and securities
- Still operating at a net loss of $2M in Q4 2024
- High administrative expenses ($4M) relative to employee count
- Heavily dependent on interest income ($2M) rather than operational revenue
- Dramatic reduction in workforce indicates significant operational downsizing
Insights
ContextLogic's Q4 results reveal a remarkable financial turnaround with net losses shrinking to just $2 million from $68 million year-over-year – a 97% improvement. This dramatic reduction follows the company's strategic divestiture of the Wish platform and operational streamlining.
The $75 million investment from BC Partners announced March 11 significantly strengthens ContextLogic's position. Combined with $66 million in cash and $83 million in marketable securities, the company now commands approximately $225 million in liquidity for investments and acquisitions. An additional $75 million facility is available specifically for acquisition opportunities.
What's particularly notable is the company's lean operational structure with just 8 employees at quarter-end. Q4 administrative expenses totaled only $4 million, while generating $2 million in interest income from conservative investments in U.S. government instruments.
The financial metrics indicate ContextLogic has effectively transformed from an operational e-commerce business to a capital allocation vehicle. With total liabilities of only $5 million against substantial liquid assets, the balance sheet presents minimal financial risk while providing significant optionality.
This investment from BC Partners – a sophisticated private equity firm – represents a strong vote of confidence in management's capital allocation strategy, bringing both financial resources and strategic expertise through the addition of two BC Partners directors to guide future investments.
ContextLogic has executed a complete strategic pivot, transforming from running the Wish e-commerce platform to positioning itself as an investment entity with substantial deployable capital. This evolution represents a fundamental business model shift that completely redefines the company.
The BC Partners transaction is particularly significant. Beyond the immediate $75 million capital injection, it establishes a strategic partnership with a sophisticated private equity firm that brings deal sourcing capabilities and transaction expertise. The addition of Ted Goldthorpe and Mark Ward to the board provides ContextLogic with experienced financial operators who can help identify and execute acquisition opportunities.
The company's newly streamlined structure – just 8 employees with minimal overhead – creates a highly efficient vehicle for pursuing their "value maximization strategy." This model resembles a special purpose acquisition company but with existing operating history and listing, potentially offering advantages in pursuing opportunistic investments.
CEO Rishi Bajaj's comment about "the next stage of ContextLogic's evolution" signals that the transformation is still ongoing. The company has successfully executed the divestiture phase of its strategy and secured capital backing, but now faces the execution challenge of deploying this capital effectively.
For investors, ContextLogic now represents a fundamentally different investment thesis than its previous e-commerce business. The value proposition centers entirely on management's capital allocation abilities and their capacity to identify acquisition targets that will generate returns exceeding what could be achieved by simply returning capital to shareholders.
OAKLAND, Calif., March 12, 2025 (GLOBE NEWSWIRE) -- ContextLogic Inc. (Nasdaq: LOGC) (“ContextLogic,” the “Company,” “we” or “our”) today reported its financial results for the quarter and fiscal year ended December 31, 2024.
Company Update
During 2024, management took several significant steps in the evolution of the Company’s business. These included, first, the sale of the Wish platform and its associated operations; second, streamlining the Company's operations; and most recently, on March 11, 2025, the Company announced the initial closing of the investment by BC Partners of
Fourth-Quarter Fiscal 2024 Financial Highlights
- Net Loss: Net Loss was
$2 million , compared to a net loss of$68 million in the fourth quarter of fiscal 2023 - As of December 31, 2024, the Company had
$66 million in cash and cash equivalents,$83 million in marketable securities and$7 million in prepaid expenses and other current assets primarily made up of restricted cash. The Company had total liabilities of$5 million .
ContextLogic will host a financial results and strategic update conference call at 5pm EDT on March 12th. The live conference call may be accessed by registering here. The associated strategic investment presentation deck can be found here on the ContextLogic Investor Relations website.
Company Outlook
The Company continues to streamline its administrative structure as it focuses on achieving its value maximization strategy both organically and through accretive acquisitions. The recent investment by BC Partners was an important milestone in that effort. Management and the Board of Directors continue to focus on identifying, evaluating and potentially executing strategic opportunities for the benefit of ContextLogic and its stockholders.
During the three months ended December 31, 2024, the Company incurred
The Company earned interest income of
“We are very pleased with how far the Company has come and look forward to working with Ted Goldthorpe and Mark Ward, our new directors from the world class team at BC Partners, as we embark on the next stage of ContextLogic’s evolution,” said Rishi Bajaj, Chief Executive Officer and Director.
About Contextlogic Inc
ContextLogic Inc. is a publicly traded company currently seeking to develop and grow a de novo business and finance potential future bolt-on acquisitions of assets or businesses that are complementary to its operations. For more information on ContextLogic, please visit ir.contextlogicinc.com.
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 ContextLogic’s financial outlook, the strategic alternatives considered by our Board of Directors, including the decisions taken thereto and alternatives for the use of the cash or cash equivalents, and other quotes of management. In some cases, forward-looking statements can be identified by terms such as “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 prove incorrect, actual results could differ materially from the results implied by these forward-looking statements. Important factors, risks and uncertainties that could cause actual results to differ materially from those forward-looking statements include but are not limited to: the strategic alternatives considered by our Board of Directors, including the decisions taken thereto; our lack of operating revenues after the sale of substantially all of our assets in April 2024; our prior history of losses; our intention not to liquidate and distribute sale proceeds to our stockholders after the sale of substantially all of our assets; our continuation as a publicly-traded and reporting company after the sale of substantially all of our assets; our ability to utilize our net operating loss carryforwards and other tax attributes; risks related to any future acquisition of a business or assets; risks if we fail to develop a viable future business plan or fail to acquire a business or assets and generate revenues; risks if we engage in a business combination that has adverse tax consequences to us or our stockholders; risks if we pursue a business combination with a privately-held target; our retention of certain liabilities relating to the assets we sold and our indemnification obligations under the sale agreement for those assets; risks if we fail to make, integrate or maintain future acquisitions and investments; risks associated with a failure to maintain effective disclosure controls and internal control over financial reporting; currently pending or future litigation; changes to laws and regulations that could affect our business or ability to pursue chosen strategic alternatives; risks if we are deemed to be an investment company under the Investment Company Act of 1940; our management strategies and plans, competitive position, business environment, potential growth strategies and opportunities; our continued listing on Nasdaq; impact of future issuances of our common stock or rights to purchase our common stock; impact of our Tax Benefits Preservation Plan on our stock performance; volatility in our stock price; impact of anti-takeover provisions in our charter documents, in our Tax Benefits Preservation Plan and under Delaware law; our possible or assumed future financial performance; our future liquidity and operating expenditures; our financial condition and results of operations; competitive changes in the marketplace; our expected tax rate; the effect of changes in or the application of new or revised tax laws; the effect of new accounting pronouncements; and the other important factors discussed in our most recent Annual Report on Form 10-K and any subsequent Quarterly Reports on Form 10-Q or Current Reports on Form 8-K. New risks emerge from time to time. It is not 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 actual results to differ materially from those contained in any forward-looking statements we may make. Further information on these and additional risks that could affect ContextLogic’s results is included in its filings with the Securities and Exchange Commission (“SEC”), including the Quarterly Report on Form 10-Q for the periods ended June 30, 2024 and September 30, 2024 and other reports that ContextLogic files with the SEC from time to time, which could cause actual results to vary from expectations. Any forward-looking statement made by ContextLogic in this news release speaks only as of the day on which ContextLogic makes it. ContextLogic assumes no obligation to, and does not currently intend to, update any such forward-looking statements after the date of this release.
| ContextLogic Inc. Condensed Consolidated Balance Sheets (in millions) (unaudited) | ||||||||
| As of December 31, | As of December 31, | |||||||
| 2024 | 2023 | |||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 66 | $ | 238 | ||||
| Marketable securities | 83 | 144 | ||||||
| Funds receivable | — | 7 | ||||||
| Prepaid expenses and other current assets | 7 | 21 | ||||||
| Total current assets | 156 | 410 | ||||||
| Property and equipment, net | — | 4 | ||||||
| Right-of-use assets | — | 5 | ||||||
| Other assets | — | 4 | ||||||
| Total assets | $ | 156 | $ | 423 | ||||
| Liabilities and Stockholders’ Equity | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | — | $ | 30 | ||||
| Merchants payable | — | 74 | ||||||
| Refunds liability | — | 2 | ||||||
| Accrued liabilities | 5 | 90 | ||||||
| Total current liabilities | 5 | 196 | ||||||
| Lease liabilities, non-current | — | 6 | ||||||
| Other liabilities, non-current | — | 4 | ||||||
| Total liabilities | 5 | 206 | ||||||
| Stockholders’ equity | 151 | 217 | ||||||
| Total liabilities and stockholders’ equity | $ | 156 | $ | 423 | ||||
| ContextLogic Inc. Condensed Consolidated Statements of Operations (in millions, except per share data) (unaudited) | |||||||||||||||
| Three Months Ended | Year Ended | ||||||||||||||
| December 31, | December 31, | ||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Revenue | $ | — | $ | 53 | $ | 43 | $ | 287 | |||||||
| Cost of revenue | — | 44 | 36 | 228 | |||||||||||
| Gross profit | — | 9 | 7 | 59 | |||||||||||
| Operating expenses: | |||||||||||||||
| Sales and marketing | — | 32 | 18 | 143 | |||||||||||
| Product development | — | 25 | 26 | 152 | |||||||||||
| General and administrative | 4 | 24 | 42 | 92 | |||||||||||
| Total operating expenses | 4 | 81 | 86 | 387 | |||||||||||
| Loss from operations | (4 | ) | (72 | ) | (79 | ) | (328 | ) | |||||||
| Other income, net: | |||||||||||||||
| Interest and other income, net | 2 | 3 | 6 | 16 | |||||||||||
| Gain on Asset Sale | — | — | 4 | — | |||||||||||
| Loss before provision for (benefit from) income taxes | (2 | ) | (69 | ) | (69 | ) | (312 | ) | |||||||
| Provision for (benefit from) income taxes | — | (1 | ) | 6 | 5 | ||||||||||
| Net loss | $ | (2 | ) | $ | (68 | ) | $ | (75 | ) | $ | (317 | ) | |||
| Net loss per share, basic and diluted | $ | (0.08 | ) | $ | (2.82 | ) | $ | (2.92 | ) | $ | (13.36 | ) | |||
| Weighted-average shares used in computing net loss per share, basic and diluted | 26,292 | 24,119 | 25,690 | 23,732 | |||||||||||
| ContextLogic Inc. Condensed Consolidated Statements of Cash Flows (in millions) (unaudited) | |||||||||||||||
| Three Months Ended | Year Ended | ||||||||||||||
| December 31, | December 31, | ||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Cash flows from operating activities: | |||||||||||||||
| Net loss | $ | (2 | ) | $ | (68 | ) | $ | (75 | ) | $ | (317 | ) | |||
| Adjustments to reconcile net loss to net cash used in operating activities: | |||||||||||||||
| Depreciation and amortization | — | 1 | 1 | 4 | |||||||||||
| Noncash lease expense | — | — | 1 | 3 | |||||||||||
| Impairment of lease assets and property and equipment | — | — | — | 1 | |||||||||||
| Stock-based compensation expense | — | 10 | 12 | 64 | |||||||||||
| Net (accretion) of discounts and premiums on marketable securities | (1 | ) | (1 | ) | (4 | ) | (7 | ) | |||||||
| Gain on Asset Sale | — | — | (4 | ) | — | ||||||||||
| Other | — | — | — | 1 | |||||||||||
| Changes in operating assets and liabilities: | |||||||||||||||
| Funds receivable | — | (2 | ) | — | 6 | ||||||||||
| Prepaid expenses, other current and noncurrent assets | 1 | — | 1 | 16 | |||||||||||
| Accounts payable | — | (5 | ) | (15 | ) | (22 | ) | ||||||||
| Merchants payable | — | (3 | ) | (8 | ) | (46 | ) | ||||||||
| Accrued and refund liabilities | — | (6 | ) | (7 | ) | (38 | ) | ||||||||
| Lease liabilities | — | (2 | ) | (2 | ) | (7 | ) | ||||||||
| Other current and noncurrent liabilities | — | 1 | 6 | 1 | |||||||||||
| Net cash used in operating activities | (2 | ) | (75 | ) | (94 | ) | (341 | ) | |||||||
| Cash flows from investing activities: | |||||||||||||||
| Purchases of property and equipment and development of internal-use software | — | — | — | (3 | ) | ||||||||||
| Cash disposed on Asset Sale, net of proceeds | — | — | (133 | ) | — | ||||||||||
| Purchases of marketable securities | (48 | ) | (74 | ) | (168 | ) | (313 | ) | |||||||
| Sales of marketable securities | — | — | 5 | — | |||||||||||
| Maturities of marketable securities | 83 | 73 | 228 | 390 | |||||||||||
| Net cash provided by (used) in investing activities | 35 | (1 | ) | (68 | ) | 74 | |||||||||
| Cash flows from financing activities: | |||||||||||||||
| Payments of taxes related to RSU settlement and cashless exercise of stock options | — | — | (1 | ) | (5 | ) | |||||||||
| Net cash used in financing activities | — | — | (1 | ) | (5 | ) | |||||||||
| Foreign currency effects on cash, cash equivalents and restricted cash | — | 4 | (2 | ) | (3 | ) | |||||||||
| Net increase (decrease) in cash, cash equivalents and restricted cash | 33 | (72 | ) | (165 | ) | (275 | ) | ||||||||
| Cash, cash equivalents and restricted cash at beginning of period | 40 | 310 | 238 | 513 | |||||||||||
| Cash, cash equivalents and restricted cash at end of period | $ | 73 | $ | 238 | $ | 73 | $ | 238 | |||||||
| Reconciliation of cash, cash equivalents, and restricted cash to the consolidated balance sheets: | |||||||||||||||
| Cash and cash equivalents | $ | 66 | $ | 238 | $ | 66 | $ | 238 | |||||||
| Restricted cash included in prepaid and other current assets in the consolidated balance sheets | 7 | — | 7 | — | |||||||||||
| Total cash, cash equivalents and restricted cash | $ | 73 | $ | 238 | $ | 73 | $ | 238 | |||||||
| Supplemental cash flow disclosures: | |||||||||||||||
| Cash paid for income taxes, net of refunds | $ | — | $ | — | $ | — | $ | 1 | |||||||
Contacts
Investor Relations:
Lucy Simon, CLI
ir@contextlogicinc.com
FAQ
What was ContextLogic's (LOGC) net loss in Q4 2024 compared to Q4 2023?
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