ContextLogic Inc. (d/b/a Wish) (Nasdaq: WISH), one of the largest
mobile ecommerce platforms, today reported its financial results
for the quarter and fiscal year ended December 31, 2022.
Fourth-Quarter Fiscal 2022 Financial
Highlights
- Revenues: Revenues
were $123 million, a decrease of 57% YoY
- Core Marketplace
revenues were $36 million, down 74% YoY
- Product Boost
revenues were $10 million, down 64% YoY
- Logistics revenues
were $77 million, down 37% YoY
- Net Loss: Net Loss
was $110 million, compared to a net loss of $58 million in the
fourth quarter of fiscal 2021
- Net Loss per share
was $0.16, compared to a loss of $0.09 per share in the fourth
quarter of fiscal 2021
- Adjusted EBITDA:
Adjusted EBITDA(1) was a loss of $95 million, compared to a loss of
$23 million in the fourth quarter of fiscal 2021
- Cash Flow: Cash
flows from operating activities were negative $109 million
- Free Cash Flow(1)
was negative $109 million, compared to negative $50 million in the
fourth quarter of fiscal 2021
“Despite a dynamic and challenging macroeconomic
environment, 2022 was a productive year for Wish as we continued
the journey of transformation we initiated a year ago. While we are
still in the early stages of the turnaround, I’m energized to see
the tremendous progress across each of the foundational pillars,"
said Joe Yan, Wish CEO. “As we enter fiscal year 2023, there
remains much work to be done to put us back on the path to
profitability and sustainable growth. We intend to maintain a
disciplined cash flow and a relentless focus on unit economics to
retain a solid financial foundation that will allow us to
effectively maximize the business opportunities ahead."
Yan concluded, "As we continue on our journey of
transformation, we have recently made the tough decision to reduce
our global workforce to support our business prioritization
initiatives, better align resources, and improve operational
efficiencies."
First Quarter Fiscal 2023 Financial
Guidance
- Adjusted EBITDA: Adjusted EBITDA(2) is
expected to be a loss in the range of $70 million to $80
million.
Fourth Quarter and Fiscal Year Ended 2022 Consolidated
Financials
The following tables include unaudited GAAP and non-GAAP
financial highlights for the periods presented:
Revenue(in millions, except percentages;
unaudited)
|
Three Months Ended |
|
|
|
|
Year Ended |
|
|
|
|
December 31, |
|
|
|
|
December 31, |
|
|
|
|
2022 |
|
2021 |
|
YoY% |
|
|
2022 |
|
2021 |
|
YoY% |
|
Core marketplace revenue |
$ |
36 |
|
$ |
139 |
|
(74 |
)% |
|
$ |
220 |
|
$ |
1,177 |
|
(81 |
)% |
ProductBoost revenue |
|
10 |
|
|
28 |
|
(64 |
)% |
|
|
46 |
|
|
165 |
|
(72 |
)% |
Marketplace revenue |
|
46 |
|
|
167 |
|
(72 |
)% |
|
|
266 |
|
|
1,342 |
|
(80 |
)% |
Logistics revenue |
|
77 |
|
|
122 |
|
(37 |
)% |
|
|
305 |
|
|
743 |
|
(59 |
)% |
Revenue |
$ |
123 |
|
$ |
289 |
|
(57 |
)% |
|
$ |
571 |
|
$ |
2,085 |
|
(73 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Financial Data(in millions, except
percentages; unaudited)
|
Three Months Ended |
|
|
Year Ended |
|
|
December 31, |
|
|
December 31, |
|
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
Net loss |
$ |
(110 |
) |
|
$ |
(58 |
) |
|
$ |
(384 |
) |
|
$ |
(361 |
) |
% of Revenue |
|
(89 |
)% |
|
|
(20 |
)% |
|
|
(67 |
)% |
|
|
(17 |
)% |
Adjusted EBITDA(1) |
$ |
(95 |
) |
|
$ |
(23 |
) |
|
$ |
(288 |
) |
|
$ |
(199 |
) |
% of Revenue |
|
(77 |
)% |
|
|
(8 |
)% |
|
|
(50 |
)% |
|
|
(10 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Forward Looking Guidance - First Quarter Fiscal
2023(in millions, except percentages, unaudited)
We expect the following financial results for Adjusted EBITDA in
the period presented below:
|
Three Months Ended |
|
|
March 31, 2023 |
|
Adjusted
EBITDA(2) |
$ |
(70 |
) |
to |
$ |
(80 |
) |
% YoY |
|
(75 |
)% |
|
|
(100 |
)% |
(1) |
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.” |
|
|
(2) |
Wish has not provided a
quantitative reconciliation of forecasted Adjusted EBITDA to
forecasted GAAP net income (loss) for Adjusted EBITDA within this
earnings release because the Company is unable, without making
unreasonable efforts, to calculate certain reconciling items with
confidence. These items include, but are not limited to stock-based
compensation and income taxes which are directly impacted by
unpredictable fluctuations in the market price of the company's
Class A common stock. |
Conference Call & Webcast
Information
Information about Wish’s financial results,
including a link to the live webcast and replay will be made
available on the company’s investor relations website at
https://ir.wish.com. The live conference call may be accessed by
registering using this online form. Upon registration, all
telephone participants will receive the dial-in number along with a
unique PIN number that can be used to access the call.
About Wish
Wish brings an affordable and entertaining
shopping experience to millions of consumers around the world.
Since our founding in San Francisco in 2010, we have become one of
the largest global ecommerce platforms, connecting millions of
value-conscious consumers to hundreds of thousands of merchants
globally. Wish combines technology and data science capabilities
and an innovative discovery-based mobile shopping experience to
create a highly-visual, entertaining, and personalized shopping
experience for its users. For more information about the company or
to download the Wish mobile app, visit www.wish.com or follow @Wish
on Facebook, Instagram and TikTok or @WishShopping on Twitter and
YouTube.
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; 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. We also provide Free Cash Flow, a non-U.S. GAAP
financial measure that represents net cash used in operating
activities less purchases of property and equipment. We believe
that Free Cash Flow is an important measure since we use third
parties to host our services and therefore we do not incur
significant capital expenditures to support revenue generating
activities. The reconciliation between net cash used in operating
activities and Free Cash Flow is provided below. Free Cash Flow has
limitations as an analytical measure, and you should not consider
it in isolation or as a substitute for analysis of our net cash
used in operating activities, 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 including expectations with respect to
adjusted EBITDA, expectations regarding new business strategies,
the anticipated return on our investments and their ability to
drive future growth and capitalize on related opportunities, and
other quotes of management. In some cases, forward-looking
statements can be identified by terms such as “anticipates,”
“believes,” “could,” “estimates,” “expects,” “foresees,”
“forecasts,” “guidance,” “intends” “goals,” “may,” “might,”
“outlook,” “plans,” “potential,” “predicts,” “projects,” “seeks,”
“should,” “targets,” “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
acquire new users and engage existing users; our ability to
promote, maintain, and protect our brand and reputation and offer a
compelling user experience; the effectiveness of our CEO
transition; the continued services of members of our senior
management team; our ability to offer and promote our app on the
Apple App Store and the Google Play Store; the risk of merchants on
our platform using unethical or illegal business practices or if
our policies and practices with respect to such sales are perceived
or found to be inadequate; the success of our execution on new
business strategies; competition in our market and industry; the
ongoing COVID-19 pandemic; global conflicts, including the Russian
invasion of Ukraine; economic tension between the United States and
China; supply chain issues; increasing requirements on collection
of sales and value added taxes; significant disruption in service
on our platform or in our computer systems; litigation matters; and
material weaknesses in our internal control over financial
reporting and the effectiveness of our internal controls generally.
New risks emerge from time to time. It is not possible for our
management to predict all risks, nor can we assess the impact of
all factors on our business or the extent to which any factor, or
combination of factors, may cause actual results to differ
materially from those contained in any forward-looking statements
we may make. Further information on these and additional risks that
could affect Wish’s results is included in its filings with the
Securities and Exchange Commission (“SEC”), including its most
recent Annual Report on Form 10-K and Quarterly Report on Form
10-Q, and future reports that Wish may file with the SEC from time
to time, which could cause actual results to vary from
expectations. Any forward-looking statement made by Wish in this
news release speaks only as of the day on which Wish makes it. Wish
assumes no obligation to, and does not currently intend to, update
any such forward-looking statements after the date of this
release.
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 Annual Report on Form 10-K for the fiscal year ended
December 31, 2022. Wish assumes no obligation and does not intend
to update these estimates prior to filing its Annual Report on Form
10-K for the fiscal year ended December 31, 2022.
A Note About Metrics
The numbers for some of our metrics, including
MAUs and LTM Active Buyers, 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.
ContextLogic
Inc.Consolidated Balance
Sheets(in
millions)(unaudited)
|
As of December 31, |
|
|
As of December 31, |
|
|
2022 |
|
|
2021 |
|
Assets |
|
|
|
|
|
Current assets: |
|
|
|
|
|
Cash and cash equivalents |
$ |
506 |
|
|
$ |
1,009 |
|
Marketable securities |
|
213 |
|
|
|
150 |
|
Funds receivable |
|
14 |
|
|
|
17 |
|
Prepaid expenses and other current assets |
|
44 |
|
|
|
48 |
|
Total current assets |
|
777 |
|
|
|
1,224 |
|
Property and equipment, net |
|
9 |
|
|
|
17 |
|
Right-of-use assets |
|
9 |
|
|
|
18 |
|
Marketable securities |
|
— |
|
|
|
17 |
|
Other assets |
|
4 |
|
|
|
7 |
|
Total assets |
$ |
799 |
|
|
$ |
1,283 |
|
Liabilities and
Stockholders’ Equity |
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
Accounts payable |
$ |
53 |
|
|
$ |
67 |
|
Merchants payable |
|
120 |
|
|
|
185 |
|
Refunds liability |
|
6 |
|
|
|
23 |
|
Accrued liabilities |
|
130 |
|
|
|
174 |
|
Total current liabilities |
|
309 |
|
|
|
449 |
|
Lease liabilities,
non-current |
|
13 |
|
|
|
16 |
|
Total liabilities |
|
322 |
|
|
|
465 |
|
Stockholders’ equity |
|
477 |
|
|
|
818 |
|
Total liabilities and
stockholders’ equity |
$ |
799 |
|
|
$ |
1,283 |
|
|
|
|
|
|
|
ContextLogic
Inc.Consolidated Statements of
Operations(in millions, except per share
data)(unaudited)
|
Three Months Ended |
|
|
Year Ended |
|
|
December 31, |
|
|
December 31, |
|
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
Revenue |
$ |
123 |
|
|
$ |
289 |
|
|
$ |
571 |
|
|
$ |
2,085 |
|
Cost of revenue(1) |
|
97 |
|
|
|
169 |
|
|
|
405 |
|
|
|
977 |
|
Gross profit |
|
26 |
|
|
|
120 |
|
|
|
166 |
|
|
|
1,108 |
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
Sales and marketing(1) |
|
73 |
|
|
|
89 |
|
|
|
254 |
|
|
|
1,102 |
|
Product development(1) |
|
40 |
|
|
|
51 |
|
|
|
194 |
|
|
|
208 |
|
General and administrative(1) |
|
30 |
|
|
|
44 |
|
|
|
116 |
|
|
|
165 |
|
Total operating expenses |
|
143 |
|
|
|
184 |
|
|
|
564 |
|
|
|
1,475 |
|
Loss from operations |
|
(117 |
) |
|
|
(64 |
) |
|
|
(398 |
) |
|
|
(367 |
) |
Other income, net: |
|
|
|
|
|
|
|
|
|
|
|
Interest and other income, net |
|
5 |
|
|
|
5 |
|
|
|
15 |
|
|
|
16 |
|
Loss before provision for income
taxes |
|
(112 |
) |
|
|
(59 |
) |
|
|
(383 |
) |
|
|
(351 |
) |
Provision for income taxes |
|
(2 |
) |
|
|
(1 |
) |
|
|
1 |
|
|
|
10 |
|
Net loss |
|
(110 |
) |
|
|
(58 |
) |
|
|
(384 |
) |
|
|
(361 |
) |
Net loss per share, basic and
diluted |
$ |
(0.16 |
) |
|
$ |
(0.09 |
) |
|
$ |
(0.57 |
) |
|
$ |
(0.57 |
) |
Weighted-average shares used
in computing net loss per share, basic and diluted |
|
688 |
|
|
|
648 |
|
|
|
672 |
|
|
|
629 |
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Includes the following stock-based compensation expense:
|
Three Months Ended |
|
Year Ended |
|
December 31, |
|
December 31, |
|
2022 |
|
2021 |
|
2022 |
|
2021 |
Cost of revenue |
$ |
3 |
|
$ |
5 |
|
$ |
7 |
|
$ |
20 |
Sales and marketing |
|
1 |
|
|
2 |
|
|
6 |
|
|
12 |
Product development |
|
9 |
|
|
13 |
|
|
50 |
|
|
59 |
General and administrative |
|
6 |
|
|
17 |
|
|
9 |
|
|
50 |
Total stock-based compensation |
$ |
19 |
|
$ |
37 |
|
$ |
72 |
|
$ |
141 |
|
|
|
|
|
|
|
|
ContextLogic
Inc.Consolidated Statements of Cash
Flows(in
millions)(unaudited)
|
Three Months Ended |
|
|
Year Ended |
|
|
December 31, |
|
|
December 31, |
|
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
Cash flows from
operating activities: |
|
|
|
|
|
|
|
|
|
|
|
Net loss |
$ |
(110 |
) |
|
$ |
(58 |
) |
|
$ |
(384 |
) |
|
$ |
(361 |
) |
Adjustments to reconcile net loss to net cash used in operating
activities: |
|
|
|
|
|
|
|
|
|
|
|
Noncash inventory write downs |
|
— |
|
|
|
1 |
|
|
|
3 |
|
|
|
13 |
|
Depreciation and amortization |
|
1 |
|
|
|
2 |
|
|
|
6 |
|
|
|
9 |
|
Noncash lease expense |
|
1 |
|
|
|
1 |
|
|
|
6 |
|
|
|
11 |
|
Impairment of lease assets and property and equipment |
|
— |
|
|
|
— |
|
|
|
11 |
|
|
|
— |
|
Stock-based compensation expense |
|
19 |
|
|
|
37 |
|
|
|
72 |
|
|
|
141 |
|
Other |
|
3 |
|
|
|
4 |
|
|
|
— |
|
|
|
4 |
|
Changes in operating assets
and liabilities: |
|
|
|
|
|
|
|
|
|
|
|
Funds receivable |
|
(1 |
) |
|
|
10 |
|
|
|
3 |
|
|
|
66 |
|
Prepaid expenses, other current and noncurrent assets |
|
(3 |
) |
|
|
24 |
|
|
|
(1 |
) |
|
|
54 |
|
Accounts payable |
|
(3 |
) |
|
|
(3 |
) |
|
|
(13 |
) |
|
|
(367 |
) |
Merchants payable |
|
(1 |
) |
|
|
(31 |
) |
|
|
(65 |
) |
|
|
(269 |
) |
Accrued and refund liabilities |
|
(13 |
) |
|
|
(32 |
) |
|
|
(49 |
) |
|
|
(213 |
) |
Lease liabilities |
|
(2 |
) |
|
|
— |
|
|
|
(8 |
) |
|
|
(11 |
) |
Other current and noncurrent liabilities |
|
— |
|
|
|
(4 |
) |
|
|
(3 |
) |
|
|
(28 |
) |
Net cash used in operating
activities |
|
(109 |
) |
|
|
(49 |
) |
|
|
(422 |
) |
|
|
(951 |
) |
Cash flows from
investing activities: |
|
|
|
|
|
|
|
|
|
|
|
Purchases of property and equipment and development of internal-use
software |
|
— |
|
|
|
(1 |
) |
|
|
(2 |
) |
|
|
(2 |
) |
Purchases of marketable securities |
|
(65 |
) |
|
|
(64 |
) |
|
|
(368 |
) |
|
|
(299 |
) |
Sales of marketable securities |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
50 |
|
Maturities of marketable securities |
|
103 |
|
|
|
46 |
|
|
|
321 |
|
|
|
248 |
|
Other |
|
— |
|
|
|
— |
|
|
|
2 |
|
|
|
— |
|
Net cash provided by (used) in
investing activities |
|
38 |
|
|
|
(19 |
) |
|
|
(47 |
) |
|
|
(3 |
) |
Cash flows from
financing activities: |
|
|
|
|
|
|
|
|
|
|
|
Proceeds from issuance of common stock through employee equity
incentive plans |
|
— |
|
|
|
7 |
|
|
|
1 |
|
|
|
13 |
|
Payments of taxes related to RSU settlement and cashless exercise
of stock options |
|
(13 |
) |
|
|
— |
|
|
|
(23 |
) |
|
|
(5 |
) |
Other |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(1 |
) |
Net cash used in financing
activities |
|
(13 |
) |
|
|
7 |
|
|
|
(22 |
) |
|
|
7 |
|
Foreign currency effects on
cash, cash equivalents and restricted cash |
|
3 |
|
|
|
— |
|
|
|
(14 |
) |
|
|
— |
|
Net decrease in cash, cash
equivalents and restricted cash |
|
(81 |
) |
|
|
(61 |
) |
|
|
(505 |
) |
|
|
(947 |
) |
Cash, cash equivalents and
restricted cash at beginning of period |
|
594 |
|
|
|
1,079 |
|
|
|
1,018 |
|
|
|
1,965 |
|
Cash, cash equivalents and
restricted cash at end of period |
$ |
513 |
|
|
$ |
1,018 |
|
|
$ |
513 |
|
|
$ |
1,018 |
|
Reconciliation of
cash, cash equivalents, and restricted cash to the consolidated
balance sheets: |
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
$ |
506 |
|
|
$ |
1,009 |
|
|
$ |
506 |
|
|
$ |
1,009 |
|
Restricted cash included in
prepaid and other current assets in the consolidated balance
sheets |
|
7 |
|
|
|
9 |
|
|
|
7 |
|
|
|
9 |
|
Total cash, cash equivalents
and restricted cash |
$ |
513 |
|
|
$ |
1,018 |
|
|
$ |
513 |
|
|
$ |
1,018 |
|
Supplemental cash flow
disclosures: |
|
|
|
|
|
|
|
|
|
|
|
Cash paid for income taxes, net of refunds |
$ |
— |
|
|
$ |
6 |
|
|
$ |
6 |
|
|
$ |
10 |
|
Supplemental noncash
investing activities: |
|
|
|
|
|
|
|
|
|
|
|
Stock-based compensation capitalized in development of internal-use
software |
$ |
— |
|
|
$ |
1 |
|
|
$ |
— |
|
|
$ |
1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ContextLogic
Inc.Reconciliation of GAAP Net Loss to Non-GAAP
Adjusted EBITDA(in millions, except
percentages)(unaudited)
|
Three Months Ended |
|
|
Year Ended |
|
|
December 31, |
|
|
December 31, |
|
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
Revenue |
$ |
123 |
|
|
$ |
289 |
|
|
$ |
571 |
|
|
$ |
2,085 |
|
Net loss |
|
(110 |
) |
|
|
(58 |
) |
|
|
(384 |
) |
|
|
(361 |
) |
Net loss as a percentage of
revenue |
|
(89 |
)% |
|
|
(20 |
)% |
|
|
(67 |
)% |
|
|
(17 |
)% |
Excluding: |
|
|
|
|
|
|
|
|
|
|
|
Interest and other income, net |
|
(5 |
) |
|
|
(5 |
) |
|
|
(15 |
) |
|
|
(16 |
) |
Provision for income taxes |
|
(2 |
) |
|
|
(1 |
) |
|
|
1 |
|
|
|
10 |
|
Depreciation and amortization |
|
1 |
|
|
|
2 |
|
|
|
6 |
|
|
|
9 |
|
Stock-based compensation expense and related employer payroll
taxes(1)(2) |
|
19 |
|
|
|
39 |
|
|
|
74 |
|
|
|
150 |
|
Lease termination and impairment related expenses |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
6 |
|
Restructuring and other discrete items(3) |
|
— |
|
|
|
— |
|
|
|
29 |
|
|
|
— |
|
Recurring other items(4) |
|
2 |
|
|
|
— |
|
|
|
1 |
|
|
|
3 |
|
Adjusted EBITDA |
|
(95 |
) |
|
|
(23 |
) |
|
|
(288 |
) |
|
|
(199 |
) |
Adjusted EBITDA margin |
|
(77 |
)% |
|
|
(8 |
)% |
|
|
(50 |
)% |
|
|
(10 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
(1) |
Total amounts for the three months ended December 31, 2022 and 2021
consisted of $19 million of stock-based compensation and $37
million of stock-based compensation expense plus $2 million of
related employer payroll taxes, respectively. Total amounts for the
year ended December 31, 2022 and 2021 consisted of $72 million of
stock-based compensation expense plus $2 million of related
employer payroll taxes and $141 million of stock-based compensation
expense plus $9 million of related employer payroll taxes,
respectively. |
|
|
(2) |
Total stock-based compensation
and related employer payroll taxes for the year ended December 31,
2022 decreased by $76 million compared to the year ended December
31, 2021 primarily due to forfeitures driven by the resignation of
Mr. Szulczewski from his former position as CEO, reductions to the
Company’s workforce as part of the Company’s Restructuring Plan,
and modifications to the Company’s former Executive Chair’s equity
awards. These reductions were partially offset by the acceleration
of Mr. Talwar's equity awards upon his termination from his
position as CEO. |
|
|
(3) |
Total amount for the year ended
December 31, 2022 included a $15 million one-time discretionary
cash bonus paid to select employees to cover their respective tax
obligations triggered by the settlement of their RSUs that vested
upon the Company’s initial public offering as well as restructuring
charges consisting of $3 million of severance and other personnel
reduction costs and $11 million in impairment of lease assets and
property and equipment. |
|
|
(4) |
Total amount represents recurring
income originating from contractual agreements with third parties,
which is included within interest and other income, net within the
consolidated statements of operations. |
|
|
ContextLogic
Inc.Reconciliation of GAAP Net Cash Used in
Operating Activities to Non-GAAP Free Cash Flow(in
millions)(unaudited)
|
Three Months Ended |
|
|
Year Ended |
|
|
December 31 |
|
|
December 31, |
|
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
Net cash used operating activities |
$ |
(109 |
) |
|
$ |
(49 |
) |
|
$ |
(422 |
) |
|
$ |
(951 |
) |
Less: |
|
|
|
|
|
|
|
|
|
|
|
Purchases of property and equipment and development of internal-use
software |
|
— |
|
|
|
1 |
|
|
|
2 |
|
|
|
2 |
|
Free Cash Flow |
$ |
(109 |
) |
|
$ |
(50 |
) |
|
$ |
(424 |
) |
|
$ |
(953 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Contacts
Investor Relations:Ralph Fong,
Wishir@wish.com
Media contacts:Carys Comerford-Green,
Wishpress@wish.com
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