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ContextLogic Inc. Reports Third-Quarter 2024 Financial Results

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ContextLogic Inc. (LOGC) reported its Q3 2024 financial results, showing a significant improvement with a net loss of $1 million compared to $80 million in Q3 2023. The company maintains a strong liquidity position with $33 million in cash, $117 million in marketable securities, and $8 million in other current assets. Operating with 8 full-time employees, the company incurred $3 million in general and administrative expenses and earned $2 million in interest income. ContextLogic projects to end fiscal 2024 with approximately $155 million in combined cash, securities, and restricted cash, while maintaining low total liabilities of $5 million as it continues to evaluate strategic opportunities.

ContextLogic Inc. (LOGC) ha riportato i risultati finanziari del terzo trimestre 2024, evidenziando un significativo miglioramento con una perdita netta di 1 milione di dollari rispetto agli 80 milioni del terzo trimestre del 2023. L'azienda mantiene una solida posizione di liquidità con 33 milioni di dollari in contante, 117 milioni di dollari in titoli negoziabili e 8 milioni di dollari in altre attività correnti. Operando con 8 dipendenti a tempo pieno, l'azienda ha sostenuto spese generali e amministrative per 3 milioni di dollari e ha guadagnato 2 milioni di dollari in reddito da interessi. ContextLogic prevede di chiudere l'esercizio fiscale 2024 con circa 155 milioni di dollari in contante, titoli e contante riservato, mantenendo al contempo basse passività totali di 5 milioni di dollari mentre continua a valutare opportunità strategiche.

ContextLogic Inc. (LOGC) informó sus resultados financieros del tercer trimestre de 2024, mostrando una mejora significativa con una pérdida neta de 1 millón de dólares en comparación con los 80 millones en el tercer trimestre de 2023. La empresa mantiene una sólida posición de liquidez con 33 millones de dólares en efectivo, 117 millones de dólares en valores negociables y 8 millones de dólares en otros activos corrientes. Operando con 8 empleados a tiempo completo, la empresa incurrió en 3 millones de dólares en gastos generales y administrativos y ganó 2 millones de dólares en ingresos por intereses. ContextLogic proyecta cerrar el año fiscal 2024 con aproximadamente 155 millones de dólares en efectivo, valores y efectivo restringido, mientras mantiene pasivos totales bajos de 5 millones de dólares a medida que continúa evaluando oportunidades estratégicas.

ContextLogic Inc. (LOGC)는 2024년 3분기 재무 결과를 발표하며, 2023년 3분기 8천만 달러에 비해 100만 달러의 순손실로 현저한 개선을 보였습니다. 이 회사는 3천300만 달러의 현금, 1억 1천700만 달러의 유동성 자산, 800만 달러의 기타 유동 자산으로 강력한 유동성 위치를 유지하고 있습니다. 8명의 정규직 직원과 함께 운영되는 이 회사는 일반 관리비로 300만 달러를 지출했으며, 200만 달러의 이자 수익을 올렸습니다. ContextLogic은 2024 회계연도 말에 현금, 증권 및 제한된 현금 약 1억 5천500만 달러를 보유할 것으로 예상하며, 전략적 기회를 계속 평가하는 한편 총 부채는 500만 달러로 유지될 것입니다.

ContextLogic Inc. (LOGC) a annoncé ses résultats financiers du troisième trimestre 2024, montrant une amélioration significative avec une perte nette de 1 million de dollars par rapport à 80 millions de dollars au troisième trimestre 2023. L'entreprise maintient une solide position de liquidité avec 33 millions de dollars en espèces, 117 millions de dollars en titres négociables et 8 millions de dollars dans d'autres actifs courants. Fonctionnant avec 8 employés à plein temps, l'entreprise a engagé 3 millions de dollars en frais généraux et administratifs et a gagné 2 millions de dollars en revenus d'intérêts. ContextLogic projette de terminer l'exercice 2024 avec environ 155 millions de dollars en espèces, titres et liquidités restreintes, tout en maintenant des passifs totaux faibles de 5 millions de dollars, tout en continuant à évaluer les opportunités stratégiques.

ContextLogic Inc. (LOGC) berichtete über seine finanziellen Ergebnisse für das 3. Quartal 2024 und verzeichnete eine signifikante Verbesserung mit einem Nettoverlust von 1 Million Dollar im Vergleich zu 80 Millionen Dollar im 3. Quartal 2023. Das Unternehmen hält eine starke Liquiditätsposition mit 33 Millionen Dollar in Barvermögen, 117 Millionen Dollar in verwertbaren Wertpapieren und 8 Millionen Dollar in anderen kurzfristigen Vermögenswerten. Operierend mit 8 Vollzeitmitarbeitern hat das Unternehmen 3 Millionen Dollar an allgemeinen Verwaltungsaufwendungen gehabt und 2 Millionen Dollar an Zinserträgen erzielt. ContextLogic rechnet damit, das Geschäftsjahr 2024 mit etwa 155 Millionen Dollar an Barvermögen, Wertpapieren und eingeschränkten Barmitteln abzuschließen, während es gleichzeitig niedrige Gesamtverbindlichkeiten von 5 Millionen Dollar beibehält, während es weiterhin strategische Möglichkeiten bewertet.

Positive
  • Significant reduction in net loss to $1M from $80M YoY
  • Strong liquidity position with $158M in combined assets
  • Low operating expenses with only $3M in G&A costs
  • $2M interest income generated in Q3 2024
  • Low total liabilities of $5M
Negative
  • Still operating at a net loss
  • Substantial tax assets ($671M) subject to full valuation allowance
  • Reduced workforce to only 8 full-time employees

Insights

The Q3 2024 results show significant improvement in ContextLogic's financial position, with net losses narrowing dramatically to $1 million from $80 million in Q3 2023. The company maintains a strong liquidity position with $150 million in combined cash and marketable securities. Interest income of $2 million demonstrates effective cash management in the current high-rate environment.

Most notably, the company holds substantial potential value in $671 million of deferred tax assets, including $609 million in NOLs, currently marked at zero due to valuation allowance. With minimal liabilities of $5 million, the company is well-positioned for potential strategic transactions or acquisitions that could unlock these tax assets' value. The streamlined structure with only 8 employees and $3 million quarterly operating expenses provides extended runway for strategic opportunities.

OAKLAND, Calif., Nov. 07, 2024 (GLOBE NEWSWIRE) -- ContextLogic Inc. (Nasdaq: LOGC), (“ContextLogic,” the “Company,” “we” or “our”) today reported its financial results for the quarter and nine months ended September 30, 2024.

Third Quarter 2024 Financial Highlights

  • Net Loss: Net loss was $1 million, compared to a net loss of $80 million in the third quarter of 2023.
  • As of September 30, 2024, the Company had $33 million in cash and cash equivalents, $117 million in marketable securities and $8 million in prepaid expenses and other current assets (primarily made up of $7 million in restricted cash).

Company Outlook

Over the last quarter, the Company has created a streamlined administrative structure as it focuses on achieving its strategic goals of acquiring and/or building operating businesses. Management and the Board of Directors are focused on identifying, evaluating and potentially executing strategic opportunities for the benefit of ContextLogic and its stockholders.

During the three months ended September 30, 2024, the Company incurred $3 million of general and administrative expenses primarily related to legal expenses, employee expenses, and other professional services.  At the conclusion of the three months ended September 30, 2024, ContextLogic had eight full-time employees.

The Company earned interest income of $2 million during the three months ended September 30, 2024.  With the Company's marketable securities and cash and cash equivalents primarily invested in U.S. government instruments, and subject to changes in interest rates, we expect to earn approximately $2 million of interest income in fourth quarter of fiscal 2024. We project to end fiscal 2024 with cash and cash equivalents, marketable securities and restricted cash of approximately $155 million, excluding any advisory costs we may incur in connection with a strategic transaction.

In addition to the marketable securities and cash and cash equivalents that primarily make up its balance sheet, the Company also has deferred tax assets (including net operating losses) that are currently subject to a full valuation allowance as of September 30, 2024 and as such have a net balance of $0 million as presented on the balance sheet. As set forth in Note 9. Income Taxes in the Notes to the audited consolidated financial statements for the year ended December 31, 2023 as contained in the Company’s Annual Report on Form 10-K, as of December 31, 2023 the Company reported a deferred tax asset – net operating losses of $609 million and aggregate deferred tax assets of $671 million, subject to a full valuation allowance until the Company can demonstrate that it is more likely than not that the Company can generate income to utilize such NOLs and the valuation allowance can be released in part or in full.

As of September 30, 2024, the Company reported total liabilities of $5 million and expects the total liabilities to remain low until the Company identifies future targets to utilize and leverage its liquid assets with the goal of building stockholder value.

“We continue to review, identify and evaluate strategic opportunities with our advisors,” said Rishi Bajaj, Chief Executive Officer and Chairman of the Board. “We have made encouraging progress over the past several months and are optimistic that we will provide stakeholders with a more substantive update in the coming quarters.”

About ContextLogic

ContextLogic Inc. is a publicly traded company that previously completed the sale of substantially all of its operating assets and liabilities in April 2024. 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 Post-Closing Cash, 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 or material operations 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.
Consolidated Balance Sheets
(in millions)
(unaudited)
    
 As of September 30, As of December 31,
 2024 2023
Assets   
Current assets:   
Cash and cash equivalents$33 $238
Marketable securities 117  144
Funds receivable   7
Prepaid expenses and other current assets 8  21
Total current assets 158  410
Property and equipment, net   4
Right-of-use assets   5
Other assets   2
Deferred tax assets, net   2
Total assets$158 $423
Liabilities and Stockholders’ Equity   
Current liabilities:   
Accounts payable$1 $30
Merchants payable   74
Refunds liability   2
Accrued liabilities 4  90
Total current liabilities 5  196
Lease liabilities, non-current   6
Other liabilities   4
Total liabilities 5  206
Stockholders’ equity 153  217
Total liabilities and stockholders’ equity$158 $423
    
    


      
ContextLogic Inc.
Consolidated Statements of Operations
(in millions, except per share data)
(unaudited)
      
 Three Months Ended  Nine Months Ended 
 September 30,  September 30, 
 2024  2023  2024  2023 
Revenue$  $60  $43  $234 
Cost of revenue    46   36   184 
Gross profit    14   7   50 
Operating expenses:           
Sales and marketing    35   18   111 
Product development    38   26   127 
General and administrative 3   21   38   68 
Total operating expenses 3   94   82   306 
Loss from operations (3)  (80)  (75)  (256)
Other income, net:           
Interest and other income, net 2   3   4   13 
Gain on Asset Sale       4    
Loss before provision for income taxes (1)  (77)  (67)  (243)
Provision for income taxes    3   6   6 
Net loss (1)  (80)  (73)  (249)
Net loss per share, basic and diluted$(0.04) $(3.35) $(2.86) $(10.55)
Weighted-average shares used in computing net loss per share, basic and diluted 26,280   23,897   25,488   23,601 
            
            


   
ContextLogic Inc.
Consolidated Statements of Cash Flows
(in millions)
(unaudited)
   
 Nine Months Ended 
 September 30, 
 2024  2023 
Cash flows from operating activities:     
Net loss$(73) $(249)
Adjustments to reconcile net loss to net cash provided by used in operating
activities:
     
Depreciation and amortization 1   3 
Noncash lease expense 1   3 
Impairment of lease assets and property and equipment    1 
Stock-based compensation 12   54 
Net (accretion) amortization of discounts and premiums on marketable securities (3)  (6)
Gain on Asset Sale (4)   
Other    1 
Changes in operating assets and liabilities:     
Funds receivable    8 
Prepaid expenses, other current and noncurrent assets    16 
Accounts payable (15)  (17)
Merchants payable (8)  (43)
Accrued and refund liabilities (7)  (32)
Lease liabilities (2)  (5)
Other current and noncurrent liabilities 6    
Net cash used in operating activities (92)  (266)
Cash flows from investing activities:     
Purchases of property and equipment and development of internal use software    (3)
Proceeds from Asset Sale, net of cash disposed (133)   
Purchases of marketable securities (120)  (239)
Sales of marketable securities 5    
Maturities of marketable securities 145   317 
Net cash (used in) provided by investing activities (103)  75 
Cash flows from financing activities:     
Payment of taxes related to RSU settlement (1)  (5)
Net cash used in financing activities (1)  (5)
Foreign currency effects on cash, cash equivalents and restricted cash (2)  (7)
Net decrease in cash, cash equivalents and restricted cash (198)  (203)
Cash, cash equivalents and restricted cash at beginning of period 238   513 
Cash, cash equivalents and restricted cash at end of period$40  $310 
Reconciliation of cash, cash equivalents, and restricted cash to the condensed consolidated balance sheets:     
Cash and cash equivalents$33  $303 
Restricted cash included in prepaid and other current assets in the condensed consolidated balance sheets 7   7 
Total cash, cash equivalents and restricted cash$40  $310 
Supplemental cash flow disclosures:     
Cash paid for income taxes, net of refunds$  $1 
        
        

Contact

Investor Relations:
Lucy Simon, ContextLogic
ir@contextlogicinc.com


FAQ

What was ContextLogic's (LOGC) net loss in Q3 2024?

ContextLogic reported a net loss of $1 million in Q3 2024, compared to a net loss of $80 million in Q3 2023.

How much cash and marketable securities does LOGC have as of September 30, 2024?

As of September 30, 2024, ContextLogic had $33 million in cash and cash equivalents, and $117 million in marketable securities.

What is LOGC's projected cash position for the end of fiscal 2024?

ContextLogic projects to end fiscal 2024 with approximately $155 million in combined cash, marketable securities, and restricted cash.

How much interest income did LOGC earn in Q3 2024?

ContextLogic earned $2 million in interest income during the three months ended September 30, 2024.

ContextLogic Inc.

NASDAQ:LOGC

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LOGC Stock Data

162.11M
26.28M
3.73%
49.5%
12.54%
Internet Retail
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United States of America
OAKLAND