Shares of ContextLogic Inc. fell 13% in premarket trading Friday after the mobile e-commerce platform reported a drop in fourth-quarter revenue and said it would reduce its workforce.
Revenue declined 57% to $123 million, driven by lower sales across the business. Analysts polled by FactSet expected revenue of $152 million.
ContextLogic's net loss widened to $110 million, or 16 cents a share, from a loss of $58 million, or nine cents a share, the year prior. Analysts expected a loss of 19 cents.
Chief Executive Joe Yan, who served in an interim capacity until recently, said the company continues to work on a business transformation initiated last year.
"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," Mr. Yan said.
ContextLogic plans to reduce its workforce, though it didn't disclose the number of positions that would be affected. He said the planned reductions will support business prioritization initiatives, improve operational efficiencies and help the company better align resources.