ContextLogic 9 Mar 212020 Q4 Earnings call transcript

Good day, ladies and gentlemen, and thank you for standing by. Welcome to the Wish's Fourth Quarter and Full Year 2020 Conference Call. At this time, all participants are in a listen-only mode. After the speakers' presentation, there will be a question-and-answer session. [Operator Instructions] At this time, I would like to turn the conference over to your host, Mr. of President Vice Walsh, Investor Relations. Dennis you. Thank please Sir, begin.

welcome you, Good and Howard. afternoon, everyone. Thank

to are Joining CEO, our me discuss today results and Rajat Peter CFO, Wish's Bahri. Szulczewski and Founder

our we forward-looking will During and the statements call, about performance. financial future make plans

expectations These prove we results. the forward-looking statements guarantee are risks assumptions. [Technical If subject to materialize in are Although reflected the assumptions we Difficulty]. reasonable, the cannot and or believe statements these risks, uncertainties,

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We being result undertake the to, of broadcast later and is on not law. our except do a or update available today. information by intend events, the Relations of further Internet to, no recording obligation on website. A new as call accessible as is these Investor be call statements will required and This

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call. to everyone got earnings Dennis. ever Glad we our welcome you, And Thank back. first you

your we of you those who For IPO, in our are for thankful support. participated

is revolutionizing task. a platform and no Wish, world-class at building mobile team the small For ecommerce shopping

mission. you all So I work our and your for continued like to dedication to hard would commend

our growth look fourth start are IPO year-over-year, like to opportunities. completed was high highlights sharing demand driven be scaling will from quarter. services. For XX% to proud of Logistics the revenue million support I a we for and used quarter record everyone and with Fourth billion, approximately and raising journey fund Marketplace the we grew with $X.X to company you. We by increased else, which of future our our for in few December forward $XXX would our that business a

Our with increasing accelerated. Logistics year-over-year adoption QX merchant is business gaining strong revenue traction XXX% as in

our reduced dramatically has worldwide experience. in Importantly, and average been refund a better lower resulting rates consumer time-to-door

fast XX,XXX Wish's XX% return Local since in now than some QX, and more in scaling orders QX merchants recent normalized its year we logistics last of have are late Wish reversing retention related improvements addition, our spending. our by Local nicely is from countries. the and stores of Wish for pandemic has to challenges marketing orders in X% for trends full In and into in continued bouncing total more platform, network. year recovery seeing in launch of cohorts accounted QX pandemic intensified total last than XXXX, slowdown pressure QX In reached worldwide. caused as approximately The significant a in more we ProductBoost, first downward year. is the back advertising when merchant

And brands to La new and onboarded time door improved loyal finally, chat Wish many products as and features to that Rue languages, XX platform, than enhance innovate consumer more support. TracFone new merchants, La and to on translation experience a including Mizuno, customers, we and of engage and further continued reward the We launch estimates, Wireless. sweepstakes live the to daily including information product

customer started. global we a earning In during than companies, base ecommerce most just As our you and more power the getting we a high faced a are can we challenging lockdowns. pandemic note, global QX a on see, impacted has given but XXXX, in headwinds other ended whose by accomplished and lot been supply year chain

revenue over be year couldn't of delivering growth. for proud I team XX% our So more year

shutdowns Wish, As am year expect Wish the opportunities another to and customers to out, excited start today's World. strong going vaccines priorities to an XXXX I our back for outlining to kick roll our experience be to of and our about by consumers and serve I to When ease our growth to are the merchants off ahead. we work, bring wanted I able our XXXX mobile beyond. entertaining shopping partners and around affordable the call better and customers, for wanted billions launched we

are we features. are a $XX,XXX, For to not gamified social of a excluding shopping of media highly-engaging, bringing billion and there households and consumers estimate image-rich, consumers and experience yet many making personalized developed We to purchase. these worldwide popular number apps, substantial segment similar mobile important that when with India. those online, most of shopping China an of this X We a with is market. are income than over committed online the entertaining consumers, we price believe highly is shopping experience in affordable that to value-conscious mind, With less discovery-based

making open, by all. and ecommerce our to platform democratizing affordable, are accessible We

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we Wish sellers active built buyer, marketplace empower to increased which year sequentially and specialize unbranded than in type merchant out prices. merchant platform that have grew partnerships X In the alone, on last around initially Latin we the increased year, time, are as the grew XXX%. Since per today, merchants geographies. in quality catalog China-based see of new reflected customer of merchants by over in wallet products diversifying XXX,XXX revenue the America, more branded a world, over and You categories competitive the XXXX, QX US-based. impact can top share merchants the with comprehensive partnered Europe and With year America more growth product a of consumer We're and significant we capture XXX% increase diversifying at Wish by frequency. merchants. of further North in the Over larger now XX% and US and highly XX selling was also more our we we in order been and our QX. ticket have items, core can on network. focused of partnerships We into higher XX% platform

products. demand sales. lifetime engagement, aim our data, particularly large help logistics, services further support value services, the support, and and platform and presence tools merchants Many we merchants. brands run their provide the a by and compete adding global Asus, businesses We are to products to our utilize successful transactions We more to enhance cost-efficient services Oriental like drive access don't ecommerce our Belkin, on spend. base, prioritizing prominently struggling merchant and from advertising and advertising with and to ProductBoost Trading optimize been Toshiba, within Lenovo, scaled users, merchants Last value with that the adding optimization to We few. logistics data of goods including science new Wish's partners year, name consumer have have ad data their target maximize more are additions. to insight, high generation merchant's online and user our platform. placement, Wish's feature an increased and We leverage Merchant's feed. branded technology sell return to ad platforms. user indispensable

also a we million proprietary revenue heavily ecommerce Yet Wish, our for CapEx and developed logistics but is Traditional XXXX, merchants. reliant have zero. year was infrastructure. XXXX expenditures in build at million logistics XXX% over grew nearly $XXX platform capital $XXX year by from We companywide warehouse to to on Logistics in our

the to platform term, Longer we Over leveraging we experience with [indiscernible] our and merchants. relationships time, logistics best party our Wish. third world providers technology and the building services a will ecosystem. customers turn to to shipping around technological for are aim entire seamless ecommerce our our provide center We extend into leverage logistics to to profit a the insights

drive to offering centers. help this that growth We are connect geographies. stores customers XXXX, acquisition up days and can at be up pricing, by start a engine, this took Wish merchant Local low launched driving It's in Wish significantly to the we contributing logistics incentivizing to extended I logistics-as-a-service but toward in time. Today, online for sales as opening for Wish In over orders early our first non-Wish essentially beyond platform. like pilot, launching QX by a merchants fulfillment partner steps locations, which pick our We with current have expect our to platform tools adoption and serve select we local still dynamic value global audience. brick-and-mortar customer

a our pickup. lockdowns. world bundling is to unmet demand Wish as all Mexico, to they further XX% of logistics made the Local this will shipped orders of expect stores In XXXX, platform leveraging store value XXXX, out stored great and will were Local for that multiple Wish we pickup, orders drive awareness there Wish of Italy shipping including I for We large of efficiencies, customer to in shipment together service. in but and for We adoption indicating be for are comes a where approximately low QX type Local gradually progress accelerate

frequency any increased as in online, without a establishing and for ship then customers products, locations improve scale, goods, high footprint buy will order and shipping fulfillment are massive At in and priorities for for consumer cost-effective real warehousing to frequency next years more bulk efficiencies our a us that local offer estate. In are customer order such having pick and the clear. own can drive to store we worldwide summary, these We up several retention. option

monetization First, provided our hundreds by data advantage users customer categories. and million of of more acquisition, us thousands than of marketplace expansion of and to leverage to driving the merchants efficient continue XXX

light asset times to our and improve reduce optimize Second, customer our experience. infrastructure delivery logistics

competitive fourth, more cost-efficient build local supply scale we services logistics-as-a-service. core provide to in customers customer scale merchants, retention. and frequency capabilities, Local to a with available with make non-Wish continue high across Third, chain improve our including turn retailers our will products, of our as which Wish And to

we're grow As our about excited business both long-term near expand and our can and tell, offerings. opportunities you to

The initiatives. innovative and network of over drive products, us for advantage global is now user turn a hope decade as growth ecommerce I mobile-ecommerce to Raj. a and launch partners, to experience We new a to have merchant base, data we the call join of opportunity the building growing you experience. and large a Wish I revolutionize will continue massive. ambitious

that be metrics Marketplace and Logistics of with be earnings found Thank found non-GAAP and release, news over revenue you, we some to on in our GAAP XXXX, can Peter. can investor we discuss note reconciliation relations Please driven results In to year the which revenue. our SEC. non-GAAP A on XX% basis. year be filed increased $X.X grew will billion, website by is a by

full of $XXX and was $XXX compared the million net adjusted $XXX loss was million, of year, For in loss adjusted loss EBITDA to XXXX. EBITDA net and loss million, $XXX million,

over and Marketplace loss XXXX adjusted in of year QX, million, XX% higher QX Logistics was quarter specifically for of by million, to was $XXX $XXX EBITDA Fourth adjusted loss increased million driven $XXX XXXX. net $XXX quarter loss Looking at the million, was EBITDA compared million, year, loss revenue and and net $XXX revenue. which

QX and we which As XXXX, stock-based taxes, of year and respectively. in compensation IPO $XXX payroll and a million our million result $XXX for totaled employer expenses related December, full incurred significant

platform and converting Before into provide of users model. adding of business details buyers our and time. model wanted the over new business results, of to a those engagement improving buyers into Wish I those relies the I users, Wish's overview on monetization Wish's cost-effectively quick get on

adding merchants, providing merchants, success and new In with additional them those solutions. addition, delivering we're to economic business

of model dynamic in and XXXX. Core commission revenue, financial from for from roughly diversification, revenue ProductBoost Core total and commissions Our XX% dynamic and includes strong logistics ProductBoost revenues pricing, and benefits revenues. of revenue. accounted revenue consists pricing revenue Marketplace Marketplace including Marketplace

Our provides diversification and scale. and user global base is

European the from X% the Core America, XXXX, world. from of users, America, year from was For the with full was North South revenue XX% rest remainder of the Marketplace coming XX% and from

The accounted our for revenue from in Logistics service, which portion remaining is The other our from XXXX. X% Marketplace of XX% of ProductBoost of revenue revenue services. total advertising comes total

us Sales a margin revenue optimize of majority growth operating marketing and allows operating it expansion. we our to for significant time. but to the percent expect and expenses, accounts steadily of as have We that decrease leverage over

other at these and been historically single Our development product expenses of maintain expenses, have revenue low these G&A, expect we and digit levels. including percentages to

We time. in X% have XX% negative XXXX improved over adjusted to EBITDA continue and margin expect in from XXXX expansion generating margin to negative

cohorts customer repeat customers behavior spending with each Our us exhibit more consistent with year.

model Our light asset to the gives of our that versus quarter for into prioritize profitability manage lean fourth and real dive as time. the growth results operating us in and ability background, let's With XXXX.

year QX, growth acceleration over Marketplace accelerate in a million. revenue Marketplace revenue over in of XX% is year During record to growth to revenue, million an Core year in increased QX increased expected XX% year rate over XX% Core to from total total QX, XXXX. year year $XXX QX. Within $XXX further

declined revenue quarter. as ProductBoost $XX by pandemic year to million, merchants XX% advertising scaled XX% throughout many their headwinds the it year the uncertainty back some The from Although sequentially created over for ProductBoost budgets. XXXX increased caused prior

mile revenue we into year million, to expect warehousing way the increase. advertising or $XXX and accelerated ProductBoost the to year merchants saw year see delivery manages the the over revenue The was adoption, expansion and which Logistics to was all mile throughout QX continuing year growth program, during more our QX, first to we significant return of A+ driven in over last normalized QX increase XXX% as a merchant as However, XXXX. buyer. collection spending to Wish merchants from well operations in by

Moving XXX year an with XX% active to MAUs, on or customers. metrics; efficiently at over aspire of to monthly a on always high than Wish, million ended more user base we our LTV grow XXXX focus We user increase users, year. with

active X% year buyers LTM XX over to increased addition, In million. year

of the year In re-emphasize some unit emerging challenges of our economics discretionary the unfavorable by Europe logistical the the decline and these that led QX, income. America our most that continue season, emphasizing category. in consumer and markets disproportionately we a year higher further decision many we we During MAU markets, we out our we customer over know acquisition that as Local to North XX% to leaving pandemic our expect main customers to roll holiday not logistics an our effective To customers improve outside in of the markets pandemic, Wish faced to This decided to same where standards. de-emphasize less did were be within and impacted advertising our value-conscious and offering. began due experience with meet customer resulted effects with approach, in we LTV

which higher check example, encouraging we feed, drives ultimately purchasing For cost-efficiencies. increased incentivizing the by revenue order are at generating values items by more add-on out intent featuring average items and and within ticket

a higher over increase we recent stronger Marketplace Core that XX% have XX% buyer year revenue acquired QX are per LTV, sequentially. of reflected customers in the We which year active the of confident and cohorts is

fact, emerging success The in serve of XX In is We we we of were will in in how markets stronger playbook of delivery, total pickup re-engage for deliver that Mexico plan customers are with markets a a orders cost-efficient emerging and like Italy we the of a options that will Wish versus portion $X Local last element customer markets. strategy. points provide by these in-store Wish experience. of key Scaling we Local customers year. certain as QX more in and this can when emerging select year reduced less to

million, QX on primarily cost that for from expenses. our was profit to stock of and higher higher non-GAAP as to year fourth from million, follow XXXX costs QX basis was costs are $XXX in logistics. revenue The and XXXX was year of logistics XXXX. quarter. revenue All XX% compensation Gross declined increase year. gross revenue a to turning to mix based for services. of $XXX of of over increase the over margin due the exclude of related for XX% due Cost they Now year XX% related measures expenses to volume up quarter an the

ProductBoost to the over economies gross expect of % margin and of logistics revenue. of scale with As target to business achieve time, accelerates, XX steady a long-term to expansion begins drive we XX%

We continue in to demonstrate significant operating quarter XX% and revenue, leverage. of sales XX% compared were Fourth XXXX. to marketing revenue expenses QX of

point marketing expenses XX%, as single negative XX Wish was maintain XXXX and % improvement Fourth XX to billion revenue. full and targeting percent the business, a amount a sales cash almost and XX% cash remained year, of facilities sales capital of We inventory. and with ranges. marketing $X we compared production as a XX% and percent any free equivalents expenses highly an $X to cash in of with our we digit to quarter XXXX. own revenue and development revenue maintain minimal For Longer-term, be revenue in a flow G&A are of warehouses ended cash of low of or don't in position of solid a efficient at line million. breakeven

fact, five revenue while was positive in operations over XXXX scaled cumulative last flow $X.X $XX from XXXX. billion million, to the $XXX cash in our In million we from years

revenue to guidance. on introducing adjusted and our Moving and EBITDA outlook

revenue or year a in the quarter $XXX the XX% For we to first year increase. of $XXX XX% range to million over XXXX, expect of million,

year addition return in ProductBoost revenue revenue, our Core over to to Marketplace year growth high-margin In to QX. we expect

to exceptionally to delays. strong will time first QX reducing that inflection effects around investments impacted be suppliers our experience Year. to shipping during growth during we revenue Therefore, and improving basis, as experience, will operational in further the and rate on our since be pandemic is many door. It more important world the China. an during will a typically an growing platforms on increasing intensified temporarily Chinese that first customer New merchants of revenue with second quarter, will the the efficiency the of year QX. in of pandemic expect also customers cadence MAU Throughout the platform We note quarter year efficiently We in across and point terms by high comparative expect digital remain which platforms. as year, year growth logistics year QX base and increasingly On as were average a return focused sequential hit is building operations a growth we the this quarter a China-based deceleration following COVID and XXXX in beginning the limit revenue was on the quarter slow normalized QX. ecommerce became customers, year we expected services a that tough experienced of over comparison shopping logistics quarter we XXXX, significant most our our Last will LTV again incur CPMs higher on to user over

our investing confident right at decision We time are that in this strategically. the growth is

In in fact, retention newest the user from signals seeing positive cohorts. trends we are already

investments XXXX launching and toward employees increase platform We industry Wish headcount ended revenue new take with initiatives, our to significantly growth with we our only steps year make We XXX scale support will logistics worldwide. plan expand this talent. also to Local, top opportunities. our To

and we the in the our believe proud which per in employee XXXX, productivity, ecommerce which reflected is in best us generating is $X.X among employee industry. employee million efficiency productivity of are We revenue of

and during highest Our fourth quarters year. the of are be first to the expected strategic investments the

XX% continue and momentum the or As the year. look EBITDA $XX XX% the XX% even pleased XX%. Overall, you performance be Thank adjusted forward question. that, margin XXXX positive we in for $XX to our our We progress about million, XXXX. of are are in very heading our target more into to a loss of updating we Longer annual million on range negative you. to we the to EBITDA we operator excited with result, With of are ready first throughout to term, expect a revenue. to adjusted QX range

first question comment the Doug Our Instructions] JPMorgan. [Operator of line from or from comes Anmuth

open. is line Your

XX% for One you one Thanks Peter. taking the questions. for Raj, year-over-year in MAUs for quarter. declined Raj, the Great. mentioned

you that have expect and that And you on we about should perhaps can significantly door more relation some help that you of talk the think then, Just and to XQ? to the about things you saw should did normalized what second going as of in kind could timing then, run time you you and how XQ to hoping Thanks. at all markets back forward? how bring door, pullback The customer we for if on? acquisition emerging of have in And quantify that reduced Peter. advertising average confidence what and kind the those

the So, first take Doug, me question. let

to right countries just churn, significantly in if So it's to like consumers point emerging the the as delivery investing. invest days I the we large -- what's markets, the mentioned, these was of these not businesses and felt

countries Philippines, much some Colombia, all countries India, maybe was like decline of wherever So by the driven all it. be those Brazil

what Local. that very running Local Wish to low are logistics in Wish XX% are Now, back fairly Mexico, historical countries orders of well the seeing those normal. the level. now they're In like these also works is And we're in markets

expect MAUs So three we the get to again in these that six we months, back. markets and to would with those engage expect next

answer answers your With let I'll that, the Peter So question. question. hopefully second that

This Peter. is thanks, Doug. Yes,

core user locally really can time-to-door in Three items all-time delivery customers is And more will made icon is and we times striving at and terms now in foremost markets. the always is more reliability feed. get an This and supplies. week worldwide be half the better. to do indicated have in weeks in of low, as a improvements orange of first XXXX the proud we're adding by under often stored So an we truck sort in the of US average the corresponding over TTD of our starting all back back or reducing

we of of time. an approximately experience and remember a towards price TTD our roughly the customer we conducted customers last prioritize that that average continue that we'll brand important So item of to the customers based and in delivery It's over both XX% the improving survey also found large year, the X,XXX overall on future.

So items to not of product pay I other be platforms Local to the actually from partners think actually customers to or such effective. from be in work important to And we then will delivery. these stranded allow much and able cost Wish a as and we and and is or top order the for goods day will able more ship in may off our store customers local items fulfillment help and top it for store for to still also that, us bulk memberships of for items our our pickup. store now And on in it's all get speedier our or make also typical on remember frequency and later in store to And high consumer store we're to going help diversify both pickup afford to as real-time. will of pickup categories terms speedier further that reduce the in improve doing pickup even delivery, TTD increase time that,

So question. or your that, hopefully question. that with next I we're for ready And follow-up the a think answers

you, Thank both.

you. Thank

question or Post Bank of line Our next the comes comment Justin of America. from from

line open. Your is

then couple on questions users. Great. follow-up. maybe a more of And A

us your So more specifics -- And mentioned in down. the and on cohort do early you MAUs US, give emerging seeing What remarks, cohorts you're like there? what in you then they mentioned data in you has improved. were Europe? the markets Can prepared look

Thanks for Hey, the question. Justin. Thanks.

is this Peter. So,

comments Raj I'll on MAU the sort other a decline and discuss of think the I couple make I'll of of components question. just So let

all I came of think mentioned. emerging the decline overall sort almost markets of substantially as from Raj

to it's And he important full-year the think to that XX% the I'll actually additional cohort's year-over-year. in aspects of other behavior the now on any let question terms MAU. Raj grew remember has MAUs of still XXXX, I address or comments

in efficient because Yes. focused not we just And as felt for we mentioned on customers it's us. higher of items, the zero who what to to was $X did that cost people buy markets, I LTV want worth even western we

So versus we was XX% buyers. of because users on to up of just revenue who year higher of mentioned, the wants and one I pick users And more buy LTV buyer focusing type as per our actually those last $X item. somebody

gross actually very shift that and So you were was much because if hence, at margins, than that better shift. our of they look a positive expected

are happened, of doubled. terms last I they delays retention of saw significantly In a decline trends, to approaching, our year And the almost pre-those shipping almost to date are we almost middle we levels. would when delivery say big back

those the encouraging. So are

we've -- two, three two had Now data. of months months

had our trends, have are down We much, last logistics we the right tracking. so but best now. pretty rates for time significantly. refund have that It's obvious actually, consumers. are one when watching this those our improved consumers for a a People experience it's better our our experience mile in probably It's history of much at point of

will confident belt. But two have as under have encouraged. are we will we we we -- more more have yes, months our So,

do of look at 'XX know one or to other and us that, just we about get I Maybe go sequentially because And back going challenge questions, about you XQ? thanks. Great, any maybe pre-'XX be modeling think think you'll levels a follow-up, XQ kind for to could to is and you comments when would things everyone. help how

we you we we grow that I to guide, Yes, saw look think for spite QX, that history QX in expect as in huge still year. last of a QX -- could at a

to I went up XX% XX% QX. think revenue like last year to QX sequentially

How the our into hurt pandemic, tough comparisons that more getting So, growth The because coming we better, the expect it, again it saw. we most. are that this, in obviously the much been consumers. does again year-over-year but moderated hurt we of play factors QX, the that. have external growth value-conscious cautiously value a in still have consumers Unemployment in conscious be the will been watching stimulus consumers will most again argue

more things rate will of QX be again I come good half in back QX and all but the the starting to moderated then double-digit in would growth in year. So growth those play, strong into QX, we come

Appreciate helpful. that's Thanks, it.

you. Thank

Helfstein from Jason or Oppenheimer. Our line comment of next comes question from the

Your line is open.

Thanks. I two. may have

in first, though than maybe expecting the was bit, kind little we gross better. a came I worse even margin were of all revenue think So, a

So of there. just maybe the talk about some dynamics

the by same about and the both think I amount. Logistics Marketplace exceeded

there as meaningful model in start in if just when in a and is share the the there. can underlying And maybe letter that would kind So of about on Thank you something non-Wish select geographies. an the Anything more a for think impact a -- you members comment then in could core secondly, have to you logistics you. service made way?

the on the of first gross let part Yes. address margin. I'll question Raj

have So I anticipating. came like expense, than and apple-to-apple, it what look expected think an expense. actually better points On we on what orange, XXX basis we to excluding we SBC were gross margin, stock-based at

gross because So, was better a XXX% good, what than Marketplace Core goods, which better. gross business we was product expected. is actually also margin been margin, better

So may I SBC at think that the at expenses expected. Peter, actually second we apples-to-apples you and what you let and did be look looking exclude with than better question. things I'll answer

significant value Wish provides to allows unique an within lower this orders Local then transactions that over order logistics our and and we've stores. for marketplace. ability ultimately we Look, store a that, the drives logistics cross especially border for together really and merchants of ship which on actually efficient in feel these is look, cross-border Peter, our transacting efficient warehouse less up to sold orders service, years, to much four pick bundle as and our effective the us our be to Jason. platform proprietary on platform ourselves, last merchants especially Yes, for allows a network order with customer as And more logistics efficiencies, And lot customers top become in single transactions. multiple three, item has

we're single shipment. for many, household many customers XXX, XXX, many, using XX, So XXX and bundling orders

much become of their is As all day you stores. little going towards is lot can save versus money shipping are imagine, clearing we time over pick and of segment, they the where looking XXX XXX by that items orders drives from taking separate these last consumer be a value-conscious to what And going efficiencies bunch mile more a greater individual and these on and out our can expensive up to of bit time. consumers to them ultimately airplanes, more which doing a solutions customs delivery, think times of

the share up effectiveness. created signals necessarily and any by and strong transactions this participating So transacting for our the and to and that aren't and forward results look to scale early And higher for merchants marketplace these are transactions even to framework. we of encouraged And the not both those marketplace. again, I early may within on we very up solutions merchants think to will within we've necessarily -- reliability efficiencies passing too be overall, but and that Wish we continue pilot, it's

Thank you.

Thank you.

or question Madhukar comes of from line next Bank. Our from Kunal comment Deutsche the

Your open. line is

regard getting if normal. shipping, questions. back shipping of delays significantly. which people about this on you and you side, with One, start know are I is using use? subscription anything where enough ocean what, you happening volume market Thank you what the Local, up you that freight with are the shipping may. where to is and overrun Hi, you're And is are There to air the addressing taking for going that to costs stores. costs thanks into or we the are hey, orders Wish delivered local Couple the to being of the side coming of shipping trigger, at kind shipping on Wish and XX% seeing if on Are good are pull regard what like especially you. that orders, good trying do the through enough, then point should say, for Local

is Kunal. Peter. Thanks, This

coming of flights actually in is largely This terms the obviously baked of to in back China. to passenger especially still air somewhat and So cost reduced increases. with being in, shipping from globally, terms normal,

incentivizing baked remember to -- have gain of of by per we've increases. household typically buy Now it still limited we in freight sort largely ocean But our relatively cost value of efficiencies to even running items, bundling all increases, forward more with But order in do items higher per into almost stores cost capacity. of in we freighted send be from the customers It's will orders. use those we very terms scale. that immediately, that inventory when that pricing low you and cross-border available pickup order comes to is for air everything that the sort deployed out to

sort from so are of markets typically Local, are orders Wish of or it's more four XX% regions emerging terms ordered we're for exceeding sort of where In that geographies being pickup either select store. of to seeing and of up These sort of the the of world.

a be conscious to value of it's really emerging up tend brick in actual stores both to mortar we've with expand for these access where drive more into whether unique and actually get scale never actually inventory or more as we which ability completely sort to markets, markets sort in and that this customers markets seems the see resonate new the to scaled the us of existing this traffic to and opportunity emerging So who stores. huge well

you. Thank

you. Thank

question Nick next Jones comment or the Our comes from line of from Citi.

open. is line Your

about Italy one it think commentary on for a on up should XX% X% I Local Local being as delivered Wish any Mexico Great. Thanks And with just for with on guess, color Wish successful. kind think engage Wish you to the where I maybe shipped to can questions. on to percent locations? is the is opposed what and frequency the of taking follow-up and those following what guess getting Over Local in Thanks. I their And total. it time, in give we on home? who

you, Nick. Thank Yes.

in and to shop that we've customers and lot of ever initiatives in that one stores Peter. is obviously under launched a these this people, some of out outside and of version So, of less willingness of it's fact despite sort lockdowns still the volume, lot fastest are stores. these the venture growing order terms of the of regions Look,

situation, the of it's Local about than if quickly. So, some Local kind of at rising better you currently Wish be volume, X% others. but look Wish is for suited will the And markets again

substantially amazing you And those our of this in in year store of decade and sharing present customer highest reach after year massive faster of products gets the other though types that we're sort worse of, we will look And terms able businesses. record an up our so they we some for pickup. think effective opportunities that Wish the indications or expanding emerging like as as a enterprises early three, up to Two, a many these medium solution don't got if and if and And order see provide regions our be share store mentioned, Wish to for see has it's long orders density very closures that out term, Italy larger the making markets. that of already ending And after Wish these other will one, XXXX tool of services which stores. great a capacity, an we businesses. of of opportunity challenging from was fixed a ship build businesses what sized we get larger even new but position take experience share disaster partnership that, with look we we shipped very markets medium-sized will Italy all are stuff all the of for timing a we to and globally, believe have what Local Local perspective. infrastructure we'll are continue of small opportunity Wish small terms a leverage to Mexico can think outlook Both Wish Local drop with XX% where and into. for attractive we be And partners that exceed Local potentially it being XX% Mexico to Local to can any as to been at offering you extremely logistics geos be users, that will areas, I cheaper. and think a And in As volume. seeing traditionally

you. Great, thank

you. Thank

from Eric line Our of comes or Sheridan UBS. from comment next question the

open. is line Your

the of we maybe, up following how about building but sort of the three the velocity investments, of higher guys. beyond can the some of should of How much other the so And call on move investments through to the of investments, traffic should would the four margin so side better the already, the about those a questions be the or on user whether growth, pivot we next just side about Yes, to some shopping side the the putting quarters? other Thanks of quarters. next faster of think investors yield equation. some as it's couple from leverage think think we that of conversion

Yes.

being revenue we and right to invest trends improving time investments, are the consumer is of at the good buyer is going terms business. the way it looking in with per experience So consumer in retention and up

it that's the pay and in strategically, level for right LTV So we'll which I but buyers have, business. investment do be think one back higher to of the will thing

have billion new still you want behind as per know becoming Local company XX in that we generating Wish have revenue. are lot are we the that. shop of Secondly, around initiatives in headcount, And $X.X orders, people countries We to pursuing generally, invest revenue some opportunities. our we XXX

things investing the the in of we three levels So should those we business. think be are

question. And about answers so that your thinking it. we're that's Hopefully how

you. Thank

comment comes Suisse. Ju or question next Credit the Our from line of Stephen from

open. Your line is

you. thank Okay,

comments United investments. Thank color you And world And you the the for transit more part talk to primarily a the what has time-to-door, still Or regions your on they of or consumers? been door Is type best of might revenue adding remain to are based Raj, about some average I when elevated if you. of about at say, merchandise? unbranded China? still outside sellers I be talk you consumer faster types subsequently an of the that the the about can merchandise Peter, the time It what the you primarily reaction us specializing that in? from So, reducing talking are you on those talking door And States? of developed markets? like logistics versus, level guess are you this about seemed growth Peter's the earlier, can reacting reducing give guess

Thanks, Stephen. This is Peter.

So merchants. with respect non our branded -- to

also sort we based ways be based these branded obviously of merchants. non-China that or could various sort is Just of merchants a categorize There's merchandise. non-Asia

segment experience So on look, the market. our world-class consumers building and focus value affordable conscious that a for and entertaining always is of consumer

merchant the partnerships. terms traction, new in we are However, of most seeing where

sellers alone, over XXXX in grew partnerships America, grew we America year-over-year, at looked XXXX top US And US-based. and only. just by out X on we as And selling part the earlier, customers our if top in North merchant the XXX%. we are Latin Wish by the for Europe, mentioned, I XXX%. most into partnerships are on based And platform sellers, I US of merchant US mentioned that, XX As of these the

sales. by they though gross even it XX the sellers selling into let's consumer on our are of So the X a call Wish base, out roughly of they're one-third top

some before incremental why and So it. we're that's available seeing that's traction, build these from continue ticket categories, are to not US a furniture, those sort whether price, home places inventory Raj, lot you build it the and electronics, segment. part The sort we're of the know of Latin but different strive to types about is Europe, of unique we merchants don't it's just that's if affordable where it's across liquidation will a refurbished handle also ticket to add will of cetera. lot continue more And But I of want items, inventory other new having higher wherever And out almost in having in categories a with partnership can logistics? closeout et like in we the success we where seek and that's decor, all to where was find out still seeing success. lot and of inventory what segment, we're of different America.

sure. Yes,

seeing were Colombia, to two is Brazil our Philippines, Local. That in may again, quite last work. after traditional in lost do, let that sales delivery be are in very probably now make emerging users, to going even countries because by leveraging we delivery I emerging like just the we India, you just there pretty of can and and that we that it. levels, the we like year sales may markets by countries We we in in well been Mexico a markets. works everywhere, platforms. terms it low go zero clarify so door strategy me experimenting we Wish One the there'll Local there. customers, other So saying Wish was by think like markets is bit had route. door be But And successful, in at down where re-engaging to be has is those of Local And with record a hardly if were our Wish parts may much

countries have of So leverage infrastructure. Wish it mix some Brazil But a we we We may maybe we upon already may and in good will which Local. strategies, Local. model depending Wish emerging in a traditional market engage be just ship Because in. our purely drop do

So and those that's the we'll talk countries it, in go with we'll how engage about next more but few months.

Thank you.

you. Thank

or of Blackledge from next from line comment John question Cowen. the comes Our

line Your is open.

Great, questions. thanks. Two

than First revenue, Core it Marketplace we on was better the expected. much

Just with GMV curious what that Kind frequently? seeing question Thank buying mix Any categories? are Local. for your active Are of my And a customer would Are buyers Wish both? drove it the you. more higher or on second on more upside kind Local? you in commissions Was be using of helpful. color there buying of or they they pricing that was what are line. it dynamic Wish

one? me second first and you the do one let the Peter, take can

sure. Yes,

products. speed relative Marketplace know accelerated about than We on And with these partly did buyers it products expected to buyers. buyers Core they we revenue, of buy margins -- more tend LTV LTV the we of expensive optimize can terms we what higher these strategy much buy in and more, I'm our thinking, So, focusing yes better our talked I than because were items, of also led those much what buyer so think those the them just buyers platform; better better Marketplace QX. using revenues. and on worked very items. well to Core in strategy That's revenue And pricing dynamic far this better we then all so targeting how things mixture having it behave a on buy more was just those three based and they on per

than better lever QX, Local, Wish the that Core comment you I as in And can maybe question. saw part the the the orders on said, Peter of you of growth be we're QX. would Marketplace seeing Our to second for frequency what even

Sure, yes.

picking share bit with there because store have buyers we're as behavior. cohort partners a regions, where don't neighborhoods And terms with of resonating So volume. performance actually think ready active is out how clearly strongly our Local do anything Wish clearly affects again, transaction selection we I also strong customer to geographies, this and there little bias well. base we're in our and on of

within XX the So cost. it we time, tricky. And of Wish that, we're advantage next to not getting guess our their hour, deployed little And inventory top forward within competitive the are I the to frequency cetera. I the to within et fulfillment charging next we it that firmly on of in pick inventory stores, Local terms day from option an stores also is upload the minutes, a maybe we yet, believe order something are allows this it early. we've up traditionally us relatively weaken, high is whether to But a along that provide what been or for when off, real where this in products, for becomes bit huge it's store can allows products comes categories us customers even to still sell grocery lines. consumer those say

efficiencies with other understanding -- brick procuring understanding dynamic platforms cost and understanding fulfillment bit is long-term of that looked of and solution for their geos, of to are ready sort willing resonating just well. core who also So to logistics time consumers But behavior. much this a obviously to but Wish conscious our money, early not make as think seeing to program up it's how terms Local, strategies to comment inconvenience it's help a bit opportunities and these another ways cohort acquisition, we're one with helps of probably I in inventory in terms strong in efficient on a even of at open really have actually cost we our to pricing, are of little it save these other demand customer don't some resonates create comment this in as quite little But too customers or nicely. more their a trade-off mortar of new of affects part as stores actually our and to adoption value service and

where business something a long We're there. the and we've long-term will this time. investment made, to and customers with we will then think with is how be I our -- progress it's really investments and happy that So partners a that continue well resonating make for

you. Thank

you. Thank

Champine comes question line next of from from the comment Loop or Laura Capital. Our

Your line is open.

my I buyer active for question. what in Thanks appreciate million, LTM count information buyers but the the active was on taking QX? XX at

quarterly. disclosed haven't We

We have figure your math that. out we continue over do LTM and buyers disclosed LTM SX will you in and that disclose. we to can that's time, and do we typically And disclosed what but our have

Okay.

QX. QX to up they Laura, were sequentially

us Got you. it. think help Wish you on Colombia will to about long can step Thank that give to up plans your markets details you And Local India, out impacted that Philippines, take? demand that MAU, there? more there. and we negatively called meet the efforts How When your

pick towards bulk in XXX from will inventory frequency of and is in this. three find the products bundles so whether this touched know high items weeks those store Laura, at to Peter. and or up are package commercial now, solutions thanks, get XXX, maybe XX, regions. we per it's which deploying a forward Yes, of Yes, need XXX, Raj that to from -- upon there We sell kind right

we're working is this So that something on.

especially I concentrated North a logistics our are pandemic, been with playing supply and concentrated our given chain the and what think consumers America. for by happened Asia quite side, Europe where on while in defense we've during in accelerated the

cross-border partners agree the Wish We feel those to that. to we accelerate segment, us type anyone right with IPO opportunity. those scale of of help We these Wish Italy carefully finding else more to significantly. we're shipping. sort lot places We efforts. efficiencies at to solved adds efficiencies Mexico, conscious we're the largely than in accelerate Local deploy value an we'll drop during like which on person a greater where consumer great better Local and we now expand and And a focus to I offerings have have these what you, We problems. company. it. raised is will But choosing performance seeing funding we've in be of places oriented But doing had obviously still XXX obviously this

you. Got it. Thank

you. Thank

Our comes question or line from comment the Ralph of William Blair. from Schackart

is open. line Your

Hi, good afternoon.

strategy, to of term about your your quarter, intend is lower just remarks. keep during during this the talked items the basis? more You was prepared curious I more a a back focusing sustainable follow-up buyer strategy oriented emerging on of shorter reducing AOV if longer-term a online? levels pretty revenue question just as more quarter start you. were And see this is, marketplace core high per market Thank of the how to curious do come buyer active you that

Ralph. thanks, Yes,

So sort the I'll logistics first of $X. business. with of in part question. changes sort for ship us Yes, for make sense address it the does of strategy sub individual cost not our It's items so not effective just the an cross-border, to

of values. purchases, So of higher it's our higher to customers order incentivized order whether which -- terms actually what especially we've make correlates we've done per is items larger with in number

perspective. of conscious those the those still lines, two the reasons. broader probably, would we're conscious let's segment. all efficiencies visualize everything the now from if longer consumer can basically So greater XX% Leveraging the anymore. income consumer these have these data, of of value think kind and of curves why something bundle from $XXX,XXX who most that items sending shifted of under you about, items on way that's partners or say and $X of buy We of XX annual of one efficiency like another, K, we XX% understand within conscious the that of the in segment, about we for maybe and That's package sort so But the if kind bell performance sub viable value But all the and or we XX control control we sort something out shipments in a individually. strategy, that in core fully. focused in we those that cost one or value you household logistic orders segment on of consumer versus no K item, benefits that we three come take really

cost of have So we logistics much pandemic on and have able savings items affected X, shifted the distribution at platform sort by aren't X that still of probably segments, sort efficiencies. are the as time kind and but of conscious by towards to the and to the incur X, due focused X, the a join greater value from of ones right that consumer

Our bundle shipping, a in shipping. if expensive go those it up orders for be most consumers. from for again, bring and a they have item store strategy and $X be, in these customers to ever was lot $X and might to now is, most will these in those it back conscious the pickup because we willing -- efficiencies and conscious better value actually that we come based prior maybe will What we than the that store, value our buy pick actually to consumers strategy this are more would there think

get So a part Wish key Local is strategy again the of to those customers back.

address revenue Raj Core of So let well. hopefully that as answers I'll sort trend that. Marketplace

Yes.

level. implication. buyers We emerging in be to to -- acquisition buyer less I same which expect of staying at buyers time, be the Marketplace your same Core not more revenue point. of revenue could Clearly But those have I cheaper. mix per Marketplace the markets in get there a So cost think in trend may is Core

So and we payback and so always focus LTV the on forth.

as that So equation works. long will as that okay be

look because churn. least it causing we of markets not for reason those worth out country by was metrics and we see heavy look and The that really working, So was QX because going. at those logistics is it at country by got equation was at

those. investing point no on was it So

cap. once be So revenue lower per but will and be those will we have the in so customer countries, will stable experience buyer go those we countries after

Thanks, Great. Raj. Peter. Thanks,

Thanks.

back in to Mr. to Thank remarks. I'm queue I'd conference time. for you. the this no at turn showing like any the Peter closing additional over questions

for announcement. We you in results QX Thank forward again our speaking everyone joining look us you May today. to for with

and This in thank today's gentlemen, the Ladies you concludes program. for conference. participating

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