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Jun 30, 2024
Wish Q2 2024 Earnings Report
Reported financial results for the second quarter of 2024 following the asset sale to Qoo10.
Key Takeaways
ContextLogic reported a net loss of $13 million for the second quarter of 2024, compared to a net loss of $80 million in the same period last year. The company is focusing on identifying and evaluating strategic opportunities after the completion of the asset sale.
Net loss was $13 million, an improvement from the $80 million net loss in Q2 2023.
Completed the Asset Sale on April 19, 2024, ceasing operations of the Wish platform.
Held $103 million in cash and cash equivalents and $47 million in marketable securities as of June 30, 2024.
Began reviewing and identifying strategic opportunities to utilize NOLs and other tax attributes.
Wish
Wish
Forward Guidance
The Company expects to earn approximately $2 million of interest income per quarter for the remainder of 2024 and projects to end 2024 with approximately $155 million in cash and cash equivalents, marketable securities and restricted cash.
Positive Outlook
- Expected to earn approximately $2 million of interest income per quarter for the remainder of 2024.
- Project to end 2024 with approximately $155 million in cash and cash equivalents, marketable securities and restricted cash.
- Focusing on identifying, evaluating and potentially executing strategic opportunities.
- Aiming to utilize NOLs and certain other tax attributes to generate substantial value for shareholders.
- Total liabilities expected to remain low as the Company identifies future targets to utilize and leverage its liquid assets.
Challenges Ahead
- Incurred $13 million of general and administrative expenses during the three months ended June 30, 2024.
- Prior operations and the closing of the Asset Sale resulted in $9 million of general and administrative expenses.
- Deferred tax assets (including net operating losses) are currently subject to a full valuation allowance as of June 30, 2024.
- The Company ceased to operate the prior e-commerce business and other historical operations after the Asset Sale.
- There is a risk in failing to develop a viable future business plan or failing to acquire a business or assets and generate revenues.