ContextLogic Inc WISH is trading significantly lower Friday after the company reported worse-than-expected second-quarter financial results.
ContextLogic reported a quarterly adjusted EBITDA loss of $67 million versus a gain of $16 million year over year. The company reported quarterly revenue of $656 million, which came in below the estimate of $722.92 million.
ContextLogic said it saw a 13% reduction in app installs and a 15% reduction in average time spent on its platform quarter over quarter.
“Wish has begun executing on initiatives designed to enhance the user experience and increase engagement on the Wish app following second-quarter results that did not meet our expectations. We expect our focus on enhancing product quality and selection, providing an unmatched fun and entertaining shopping experience, and improving the performance of the app, will drive new user growth, retention and profitability over the long term," said Piotr Szulczewski, founder and CEO of Wish.
ContextLogic operates an app-based e-commerce platform with a focus on offering unique products at affordable prices.
Price Action: ContextLogic has traded as high as $32.84 and as low as 38 cents over a 52-week period.
At last check Friday, the stock was down 25.70% at $6.99.
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