Wish Reports Second Quarter 2021 Financial Results
Second Quarter 2021 Financial Highlights
The following tables include unaudited GAAP and non-GAAP financial highlights for the periods presented.
Revenue
(in millions, except percentages, unaudited)
|
Three Months |
|
|
|
Six Months |
|
|
|||||||||||||
|
|
Ended |
|
|
|
Ended |
|
|
||||||||||||
|
|
2021 |
|
2020 |
|
YoY % |
|
2021 |
|
2020 |
|
YoY % |
||||||||
|
Revenue |
$ |
656 |
$ |
701 |
|
(6 |
)% |
|
$ |
1,428 |
$ |
1,141 |
|
25 |
% |
||||
|
|
$ |
378 |
$ |
555 |
|
(32 |
)% |
|
$ |
855 |
$ |
895 |
|
(4 |
)% |
||||
|
ProductBoost |
$ |
50 |
$ |
45 |
|
11 |
% |
|
$ |
100 |
$ |
89 |
|
12 |
% |
||||
|
Marketplace Revenue |
$ |
428 |
$ |
600 |
|
(29 |
)% |
|
$ |
955 |
$ |
984 |
|
(3 |
)% |
||||
|
Logistics Revenue |
$ |
228 |
$ |
101 |
|
126 |
% |
|
$ |
473 |
$ |
157 |
|
201 |
% |
||||
Other Financial Data
(in millions, except percentages, unaudited)
|
Three Months |
|
Six Months |
||||||||||||||
|
|
Ended |
|
Ended |
|||||||||||||
|
|
2021 |
|
2020 |
|
2021 |
|
2020 |
|||||||||
|
Net loss |
$ |
(111 |
) |
$ |
(11 |
) |
|
$ |
(239 |
) |
$ |
(77 |
) |
|||
|
% of Revenue |
|
(17 |
)% |
|
(2 |
)% |
|
|
(17 |
)% |
|
(7 |
)% |
|||
|
Adjusted EBITDA* |
$ |
(67 |
) |
$ |
16 |
|
|
$ |
(146 |
) |
$ |
(35 |
) |
|||
|
% of Revenue |
|
(10 |
)% |
|
2 |
% |
|
|
(10 |
)% |
|
(3 |
)% |
|||
|
* 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.” |
“Wish has begun executing on initiatives designed to enhance the user experience and increase engagement on the Wish app following second-quarter results that did not meet our expectations,” said Wish Founder and CEO
Conference Call & Webcast Information
Wish will host a live conference call to discuss the results today at
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; remeasurement of redeemable convertible preferred stock warrant liability; 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.
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 Wish’s outlook, priorities, initiatives including actions to enhance the user experience and engagement, expectations relating to our advertising spend and plans with respect to new user acquisition, expectations regarding new executive hires, product quality, app performance, reducing delivery times and growth opportunities. In some cases, forward-looking statements can be identified by terms such as “anticipates,” “believes,” “could,” “estimates,” “expects,” “guidance,” “intends,” “may,” “outlook,” “plans,” “potential,” “predicts,” “projects,” “seeks,” “should,” “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. Risks include, but are not limited to: our ability to attract, retain and monetize users; risks associated with software updates to the platform; increasing requirements on collection of sales and value added taxes; compromises in security; changes by third-parties that restrict our access or ability to identify users; competition; disruption, degradation or interference with the hosting services we use and infrastructure; our financial performance and fluctuations in operating results; pressure and fluctuation in our stock price, including as a result of short selling and short squeezes; challenges in our logistics programs; challenges in growing our Wish Local program and other new initiatives; the continued services 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 Quarterly Report on Form 10-Q for the quarter ended
A Note About Metrics
The numbers for some of our metrics, including MAUs, 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.
|
|
||||||||||||||||
|
Reconciliation of GAAP Net Loss to Non-GAAP Adjusted EBITDA |
||||||||||||||||
|
(in millions) |
||||||||||||||||
|
(unaudited) |
||||||||||||||||
|
|
|
Three Months Ended |
|
|
Six Months Ended |
|
||||||||||
|
|
|
|
|
|
|
|
||||||||||
|
|
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
||||
|
Revenue |
|
$ |
656 |
|
|
$ |
701 |
|
|
$ |
1,428 |
|
|
$ |
1,141 |
|
|
Net loss |
|
|
(111 |
) |
|
|
(11 |
) |
|
|
(239 |
) |
|
|
(77 |
) |
|
Net loss as a percentage of revenue |
|
|
(17 |
)% |
|
|
(2 |
)% |
|
|
(17 |
)% |
|
|
(7 |
)% |
|
Excluding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest and other expense (income), net |
|
|
(8 |
) |
|
|
(5 |
) |
|
|
(8 |
) |
|
|
(8 |
) |
|
Provision for income taxes |
|
|
5 |
|
|
|
— |
|
|
|
7 |
|
|
|
— |
|
|
Depreciation and amortization |
|
|
3 |
|
|
|
3 |
|
|
|
5 |
|
|
|
5 |
|
|
Stock-based compensation expense |
|
|
37 |
|
|
|
— |
|
|
|
74 |
|
|
|
— |
|
|
Employer payroll taxes related to stock-based compensation expense |
|
|
— |
|
|
|
— |
|
|
|
7 |
|
|
|
— |
|
|
Remeasurement of redeemable convertible preferred stock warrant liability |
|
|
— |
|
|
|
28 |
|
|
|
— |
|
|
|
43 |
|
|
Lease impairment related expenses |
|
|
6 |
|
|
|
— |
|
|
|
6 |
|
|
|
— |
|
|
Recurring other items |
|
|
1 |
|
|
|
1 |
|
|
|
2 |
|
|
|
2 |
|
|
Adjusted EBITDA |
|
|
(67 |
) |
|
|
16 |
|
|
|
(146 |
) |
|
|
(35 |
) |
|
Adjusted EBITDA margin |
|
|
(10 |
)% |
|
|
2 |
% |
|
|
(10 |
)% |
|
|
(3 |
)% |
View source version on businesswire.com: https://www.businesswire.com/news/home/20210812005749/en/
Investor Relations:
ir@wish.com
Media contacts:
press@wish.com
Source: Wish
