ContextLogic (WISH) Shares Rise After Positive Revenue Outlook

ContextLogic Inc (NASDAQ:WISH) is the parent company of global e-commerce platform Wish. It primarily makes money by receiving commission from merchants on products they sell on its marketplace. It also generates revenue by providing ads and logistic services to its merchants. ContextLogic went public in December by selling its shares at $24 apiece for total proceeds of $1.1 billion.

The San Francisco-based e-commerce platform on Monday released its quarterly results for the first time as a public company. ContextLogic reported a loss of $569 million, or $3.04 per share for the fourth quarter ended December 31, wider than a loss of $124 million, or $1.20 per share in the comparable period of 2019. Analysts on average were expecting a loss of $2.27 per share.

Revenue came in at $794 million, significantly higher than $576 million in the year-ago quarter, and above the consensus forecast of $736.1 million.

Speaking on the quarterly performance, CEO Peter Szulczewski said in a statement, “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.”

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ContextLogic also issued its revenue outlook for the first quarter. The company expects to report revenue in the range of $735 million to $750 million for the current quarter, well above analysts’ average estimate of $669.2 million. WISH shares rose nearly 3 percent on Tuesday following the positive outlook.

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