CONTEXTLOGIC INC Reports Positive Third Quarter FY2023 Earnings Results
November 27, 2023
☀️Earnings Overview
On September 30 2023, CONTEXTLOGIC INC ($NASDAQ:WISH) announced their earnings results for the third quarter of FY2023. Revenue was USD 60.0 million, a decrease of 52.0% compared to the same quarter of the prior year. Net income was USD -80.0 million, an improvement from the net loss of -124.0 million reported in the same quarter of the previous fiscal year.
Stock Price
The stellar results show that CONTEXTLOGIC INC’s strategies are paying off and that its investments into digital marketing and e-commerce are driving the company’s success. Looking forward, CONTEXTLOGIC INC is confident in its ability to remain a leader in its industry and continue to grow. The company is continuing to invest in its technology and customer service capabilities, as well as explore new markets to expand into. With strong financials and ambitious goals, CONTEXTLOGIC INC is poised to have another successful quarter in FY2023. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Contextlogic Inc. More…
| Total Revenues | Net Income | Net Margin |
| 357 | -359 | -100.6% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Contextlogic Inc. More…
| Operations | Investing | Financing |
| -375 | 113 | -18 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Contextlogic Inc. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 492 | 220 | 11.33 |
Key Ratios Snapshot
Some of the financial key ratios for Contextlogic Inc are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| -46.4% | – | -104.5% |
| FCF Margin | ROE | ROA |
| -105.9% | -76.6% | -47.4% |
Analysis
GoodWhale recently conducted an analysis of CONTEXTLOGIC INC’s fundamentals. The results were varied, with the company being strong in assets but weak in dividend, growth and profitability. Our Star Chart indicated that CONTEXTLOGIC INC had an intermediate health score of 4/10 when considering its cashflows and debt, which indicates that it is likely to sustain future operations in times of crisis. Based on our analysis, we classified CONTEXTLOGIC INC as an ‘elephant’, meaning it is rich in assets after deducting off liabilities. We believe this type of company would be of great interest to value investors. They may consider CONTEXTLOGIC INC as a long-term investment opportunity, with the potential for capital appreciation and a steady dividend yield over time. More…
Peers
There is intense competition between ContextLogic Inc and its competitors: eBay Inc, Amazon.com Inc, MercadoLibre Inc. All of these companies are vying for a share of the online marketplaces industry. Each company has its own strengths and weaknesses, and it is up to the consumer to decide which company they want to use.
– eBay Inc ($NASDAQ:EBAY)
eBay Inc. is an American multinational e-commerce corporation based in San Jose, California, that facilitates consumer-to-consumer and business-to-consumer sales through its website. eBay was founded by Pierre Omidyar in 1995, and became a notable success story of the dot-com bubble. Today, it is a multibillion-dollar business with operations in about 30 countries.
– Amazon.com Inc ($NASDAQ:AMZN)
Amazon.com Inc is an American multinational technology company based in Seattle, Washington, that focuses on e-commerce, cloud computing, digital streaming, and artificial intelligence. It is one of the Big Five companies in the U.S. information technology industry, along with Google, Apple, Microsoft, and Facebook. The company has a market cap of 1.05T and ROE of 6.29%. Amazon was founded by Jeff Bezos in 1994, and it has since grown to become one of the most valuable companies in the world. The company’s success has been fueled by its focus on innovation and customer service. Amazon has developed a number of groundbreaking technologies, including Amazon Web Services, Kindle, and Alexa. Amazon has also been a leader in customer satisfaction, with its customer service rated as the best in the US by the American Customer Satisfaction Index.
– MercadoLibre Inc ($NASDAQ:MELI)
MercadoLibre is a leading e-commerce platform in Latin America. It has a market cap of $44.39B as of 2022 and a return on equity of 23.4%. The company enables businesses and consumers to connect and trade through its marketplace platform. MercadoLibre also offers payments, logistics, and advertising solutions.
Summary
Investors may want to take a close look at CONTEXTLOGIC INC after the company reported its third quarter of FY2023 earnings results. Revenue for the period was USD 60.0 million, a 52.0% decrease from the same period in the prior year, while net income was USD -80.0 million, compared to a net loss of -124.0 million in the same quarter of the previous fiscal year. Despite the significant decrease in revenue, the improvement in net income is a positive sign that the company is moving in the right direction. Investors may want to consider whether CONTEXTLOGIC INC is a sound investment with potential for long-term growth.
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