Wish Reports Fourth Quarter and Fiscal Year 2020 Financial Results

Rhea-AI Summary

ContextLogic Inc. (Wish) reported a 38% increase in Q4 revenue year over year, driven by strong Marketplace and Logistics services. The company improved buyer monetization, leading to higher revenue per active buyer. Wish Local's network has grown to over 50,000 stores in 40 countries, enhancing customer service options. For 2021, Wish aims to enhance customer acquisition, optimize logistics, and expand product categories, positioning itself to tap into the vast mobile ecommerce market.

Positive

• Q4 revenue increased by 38% year over year.
• Strong growth in Core Marketplace Revenue per Active Buyer.
• Wish Local network expanded to over 50,000 stores across 40 countries.

Negative

• None.

ContextLogic Inc. (d/b/a “Wish”), one of the world’s largest and fastest growing mobile ecommerce platforms, today reported financial results for its fourth quarter and fiscal year ended December 31, 2020.

“As a newly public company, we are pleased with Wish’s performance in a year marked with unprecedented global challenges,” said Wish Founder and CEO Peter Szulczewski. “Strong demand for our Marketplace and Logistics services drove total Q4 revenue growth of 38% year over year.

“Our efforts to improve buyer monetization and engage with high lifetime value customers drove strong year over year and sequential growth in Core Marketplace Revenue per Active Buyer. As we worked to improve the Wish customer experience, merchants rapidly adopted our proprietary logistics platform and we significantly reduced average time to door worldwide. We’re also building up our network of local brick-and-mortar Wish Local partners, which now includes more than 50,000 stores across 40 countries, providing us with in-market warehousing and a more cost-effective 'buy online, pick up in store' option for customers.

“The opportunity in mobile ecommerce is massive. Wish is uniquely positioned to address the needs of an underserved group of billions of value-conscious consumers. We will continue to invest in building an affordable world-class ecommerce platform, while striving to drive strong revenue growth and margin expansion over time. Our priorities for 2021 include driving efficient customer acquisition and monetization, optimizing our logistics infrastructure, scaling Wish Local, adding new product categories, and opening up our platform to make our services available to non-Wish merchants,” concluded Szulczewski.

Additional earnings materials, including management’s prepared remarks for the conference call, can be found in the Quarterly Results section of Wish’s investor relations website at: https://ir.wish.com/financial-information/quarterly-results.

Fourth Quarter and Full Year 2020 Financial Highlights

(in millions, except percentages; unaudited)

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

Revenue:

Three Months Ended

Year Ended

December 31,

% Growth

December 31,

FAQ

What were Wish's revenue results for Q4 2020?

Wish reported a 38% increase in revenue for Q4 2020 compared to the same quarter in the previous year.

What are Wish's priorities for 2021?

Wish aims to improve customer acquisition, optimize logistics, expand product categories, and scale Wish Local.

How has Wish performed in its first year as a public company?

Wish had strong performance in its first year, achieving significant revenue growth despite global challenges.