ContextLogic sinks after Q4 revenue misses estimates

ContextLogic Holdings

24/02/2023 16:59

** Shares of mobile ecommerce co ContextLogic Inc  WISH.O 
down 27.2% at $0.52 
    ** Co's Q4 revenue fell 57% to $123 mln vs analysts' average
estimate of $152 mln - Refinitiv IBES data  urn:newsml:reuters.com:*:nGNX4L4XCz
    ** Co also expects Q1 2023 adj. EBITDA to be a loss of $70
mln-$80 mln
    ** "Revenue decline was primarily driven by reduced ad spend
in the quarter" CEO on conf call 
    ** "From a year-over-year comparison standpoint, Q1 2023 is
expected to remain unfavorable relative to Q1 2022, as Q1 2022
benefited from the original pricing practice, resulting in
higher revenue and EBITDA" - CFO on conf call
    ** Additionally, co has decided to reduce its global
workforce to support its business prioritization initiatives
    ** Shares of ContextLogic fell 84.3% in 2022
 (Reporting by Sri Hari N S)
 ((SriHari.NS@thomsonreuters.com;))