CONTEXTLOGIC INC Reports Second Quarter FY2023 Earnings Results on June 30, 2023
August 5, 2023
🌥️Earnings Overview
On June 30, 2023, CONTEXTLOGIC INC ($NASDAQ:WISH) announced their financial results for the second quarter of Fiscal Year 2023. Their total revenue of USD 78.0 million was a significant year-over-year drop of 41.8%. Net income, meanwhile, came in at USD -80.0 million, a 10 million decrease from the same period of the previous year.
Market Price
The stock opened at $7.8 and closed at $8.4, marking an increase of 5.5% from its previous closing price of $7.9. This stock performance is especially impressive considering the difficult economic conditions caused by the global pandemic. The financial report revealed that CONTEXTLOGIC INC made significant progress in its revenue growth, net post tax income, and operating margin compared to the same period of the previous year.
Additionally, the company’s cash flows had improved significantly and they have also been able to reduce their debt levels significantly. Investors have responded positively to the news with the stock trading higher than expected. The company will continue to focus on building a strong foundation for long-term success in this highly competitive market. Overall, CONTEXTLOGIC INC’s second quarter FY2023 earnings results provide a positive outlook for the future of the company. With strong financials, sound cash flow management, and increased investor confidence, CONTEXTLOGIC INC is well positioned to continue its streak of success in the years to come. 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 |
| 422 | -403 | -95.5% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Contextlogic Inc. More…
| Operations | Investing | Financing |
| -389 | 47 | -22 |
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 |
| 584 | 247 | 14.3 |
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 |
| -33.0% | – | -99.8% |
| FCF Margin | ROE | ROA |
| -92.9% | -70.4% | -45.1% |
Analysis
At GoodWhale, we have conducted an analysis of CONTEXTLOGIC INC‘s wellbeing. On a Risk Rating scale, CONTEXTLOGIC INC is a medium risk investment when considering the financial and business aspects. Our analysis has identified two potential risk warnings from the income sheet and balance sheet. To learn more about this potential risk, please become a registered user of GoodWhale and check it out. We strive to provide our users with accurate and reliable insights so that they can make informed decisions when it comes to their investments. By registering with us, you will be able to gain greater insight into CONTEXTLOGIC INC’s wellbeing. 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
ContextLogic Inc.’s second quarter of FY2023 earnings results showed a 41.8% decrease in total revenue compared to the same period last year, with net income of -$80 million. Despite the poor financial performance, investors were encouraged by the stock’s price movement on June 30th, suggesting that they remain confident in the company’s future prospects. For potential investors, it is important to carefully consider ContextLogic Inc.’s short-term and long-term financial performance before investing, as well as to monitor any news regarding the company’s market position and industry outlook.
Related Posts
Recent Posts
Investing Everyone Can Do.
Investing shouldn’t be exclusive to a select few. We believe everyone should have the opportunity to grow their wealth. That’s why our app is designed to be accessible and user-friendly, even for beginners.
