ContextLogic Inc. (NASDAQ:WISH) Q2 2023 Earnings Call Transcript

So that’s a very big portion, why the marketplace revenue, declined from year-over-year standpoint. Now, keep in mind, going into Q3 this year, the comparison will be apples-to-apples. So because that change wasn’t completed at the end of Q2 last year, and Q3 onward is clean. So that’s number one. Number two, I think the — I will say despite the fact that we improve ROIs, ROI on the marketing, and we’re being really careful in terms of how we allocate in the budget dollar. As Joe mentioned, we focus on the existing buyers when we see upside in the ROAs we move additional dollar into new user acquisition. So we have done all the right things in terms of optimizing the returns on the marketing, however the external competition and the market general macro has been a much bigger factor in driving down the total revenue, particularly on the marketplace side.

So I think that’s not a reflection of the efficiency of our marketing spend is probably more reflection of the pricing changes from year-over-year standpoint as well as we intensify the competition.

Joe Yan: Therefore, overall marketing spend, performance now is still the majority of our spend. But starting Q2, right and coming to Q3 gradually, so now actually, we start some of the new brand marketing campaign. So the idea here is we want to have some of the always on evergreen brand marketing campaign in some of the diversified channels right, and see how the brand marketing can really play the role to help us to improve the tough funnel conversion, to help us to build top funnel. So this is something we do expect to see the synergy in between the performance of brand marketing can really help us to kind of improve the marketing efficiency holistically.

Operator: Thank you. This does conclude the question and answer session of today’s program. I’d like to hand the program back to Joe Yan for any further remarks.

Joe Yan: Thanks, everyone, for joining our earnings conference call and we look forward to talking to you throughout the quarter.

Operator: Thank you, ladies and gentlemen, for your participation in today’s conference. This does conclude the program. You may now disconnect. Good day.