ContextLogic ($WISH) narrows loss to $68 million in Q4

ContextLogic Inc is trading down in extended hours on Monday after coming in below Street estimates in its fourth financial quarter.

Why is $WISH stock trading down in after-hours?

The stock is in the red also because $WISH refrained from offering future guidance today citing the pending $173 million transaction with Qoo10 as Invezz reported here.

And revenues across all segments did not paint a rosy picture either. ContextLogic saw its core marketplace revenue tank 57% on a year-over-year basis as per the press release while product boost and logistics revenues were down 50% and 57% in Q4, respectively.

The eCommerce platform also signalled $14 million in revenue for January in its quarterly earnings report. $WISH is now down over 15% versus its year-to-date high.

Notable figures in ContextLogic's Q4 earnings report

• Lost $68 million versus the year-ago $110 million
• Per-share loss also narrowed from $4.80 to $2.82
• Revenue tanked 57% year-over-year to $53 million
• Consensus was $2.66 a share loss on $53.06 million revenue

ContextLogic reported $75 million of free cash flow in its Q4 earnings report. Note that $WISH expects the Qoo10 transaction to help remove debt from its balance sheet and limit its operating expenses.

The Nasdaq-listed firm is expects that deal to close in the second quarter of 2024. It will discuss the aforementioned financial results on a conference call that you can tune into on this link.