WISH beats earnings expectations but reports less revenue – Q3 2021

E-commerce platform WISH released its earnings report on Wednesday after the market closed. The company reported a revenue of $368 million and an earning of -$0.10 per share.

EPS: -$0.10 vs estimated $0.15
Revenue: $368 million vs estimated $373.9 million

Earnings History

WISH last released its earnings report on 12th August, 2021. It delivered a net loss per share of $0.11, but missed revenues estimates by $66 million. Total revenue and core marketplace revenue earned by the company in quarter 2 was $656 million and $378 million respectively. Besides, it also reported adjusted EBITDA of $67 million, a margin of 10%.

The firm generated a cost of revenue of $272 million for the second quarter of 2021, a 31 percent year-over-year increase. Non-GAAP cost of revenue as the company reported, which excluded stock-based compensation, was $267 million, an increase of 28 percent year-over-year. 

Context Logic’s (WISH) ended Q2 with a solid cash position of $1.6 billion in cash, cash equivalents, and marketable securities. 

Future Plans

Wish is introducing the Wish Standards program to improve product quality on the platform and other positive behaviors from its merchants. It is doing so as part of a broader effort to improve user trust and increase customer retention. 

Company Profile

Context Logic’s (WISH) is an American online e-commerce platform, it facilitates transactions between sellers and buyers. The company that is headquartered in San Francisco, United States, was founded in 2010 by Piotr Szulczewski (CEO) and Danny Zhang (former CTO). It is operated by parent company Context Logic’s Inc.and has two other subsidiaries; WISH Outlet and WISH Express. It operates worldwide. 

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