WISH - ContextLogic stock crashes over 10% on Q1 miss soft guide

2023-05-04 17:37:23 ET

ContextLogic ( NASDAQ: WISH ) shares slumped after the bell on Thursday after reporting a wider than expected Q1 loss.

The California-based e-commerce company reported a $3.83 per share loss on a GAAP basis, coming in $0.21 wider than anticipated. Meanwhile, a 49.2% decline in revenue to $96M was $19.88M lighter than the Street consensus. Adjusted EBITDA losses accelerated to $62M from $40M in Q1 2022.

“Our turnaround remains on track, as we continue to make progress in our key strategic initiatives, specifically our conversion rates, buyer retention and customer satisfaction,” Joe Yan said, remaining confident. “The path towards growth is clear and we remain energized by the opportunities that lie ahead. Building on the vision we have about the future of our business, our Board last month authorized a $50M share repurchase program. We believe this share repurchase program will support our efforts to unlock the long-term value and opportunity we see ahead.”

For Q2, revenue is anticipated to range from $91M to $102M, significantly below the $127.33M consensus expectation. An adjusted EBITDA loss of $60M to $75M is projected for the quarter.

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