ContextLogic shares fell 19.13% in premarket trading.
The parent of e-commerce site Wish said demand for its products slowed, fewer users and active buyers used its platform, and costs rose more than it had expected.
ContextLogic Inc. reported a second-quarter loss of $111 million, or 18 cents a share, compared with a loss of $11 million, or 10 cents a share, in the year-ago period, when the company was private. Sales fell 6% to $656 million from $701 million a year ago.
Analysts on average expected the company to report losses of 13 cents a share on sales of $723 million, according to FactSet.
Logistics improved and “we expected user retention to improve now that we have more reliable logistics, but instead retention declined,” the company said in a letter to investors.
“While we are not satisfied with these results, the second quarter of 2021 was already going to be a challenging year-over-year comparison,” since the company benefited from a significant increase in mobile usage and less competition from brick-and-mortar stores, Wish said.