ContextLogic Inc shares are crumbling 15% in premarket trading on Friday following the company's quarterly results.
Revenues were down 42% year-over-year. Core marketplace volumes were down 56%, product boost revenues were down 45%, and logistics revenues were down 30%.
Q2 Revenue: $78 million missed estimates of $94.25 million
Q2 EPS: loss of $3.38 beat estimates for a loss of $3.74
"Our second quarter results reflect a continuingly challenging operating environment. While our adjusted EBITDA results were in-line with expectations, we experienced macro and competitive pressure on our top-line performance," said Joe Yan, CEO of Wish.
"Looking ahead to the remainder of the year, we recognize that macroeconomic uncertainties and competitive pressures will likely persist."
ContextLogic said it's taking aggressive actions to lower its cost structure and improve operational efficiencies significantly.
Third-quarter revenue is expected to be between $55 million and $65 million. The company anticipates an adjusted EBITDA loss of $55 million to $65 million.
