Financial Performance - Total revenue for the year ended December 31, 2024, was $43 million, a decrease of $244 million or 85% compared to $287 million in 2023[159] - Loss from operations for 2024 was $79 million, compared to a loss of $328 million in 2023[156] - The company incurred total operating expenses of $86 million in 2024, down from $387 million in 2023, reflecting a decrease of $301 million or 78%[156] - Interest and other income, net decreased by $10 million, or 63%, to $6 million for the year ended December 31, 2024, compared to $16 million in 2023, with 14% of revenue in 2024 versus 6% in 2023[165] - Gain on Asset Sale increased by $4 million, or 100%, to $4 million for the year ended December 31, 2024, due to the Asset Sale completed on April 19, 2024[166] - Provision for income taxes increased by $1 million, or 20%, to $6 million for the year ended December 31, 2024, compared to $5 million in 2023, representing 14% of revenue in 2024 versus 2% in 2023[167] Operating Expenses - Sales and marketing expenses decreased by $125 million or 87% to $18 million in 2024, compared to $143 million in 2023[161] - The cost of revenue decreased by $192 million or 84% to $36 million in 2024, compared to $228 million in 2023[160] - Product development expenses decreased by $126 million, or 83%, to $26 million for the year ended December 31, 2024, compared to $152 million in 2023, representing 60% of revenue in 2024 versus 53% in 2023[162][163] - General and administrative expenses decreased by $50 million, or 54%, to $42 million for the year ended December 31, 2024, compared to $92 million in 2023, accounting for 98% of revenue in 2024 versus 32% in 2023[164] Asset Sale Impact - Following the Asset Sale on April 19, 2024, the company no longer earns operating revenue from its previous marketplace and logistics operations[142] - The Asset Sale involved selling substantially all assets to Qoo10, with the company retaining certain tax attributes and cash equivalents[139] - Following the Asset Sale, the company no longer has revenue or deferred revenue, as it has no marketplace and logistics operations[183][184] Cash Flow and Financial Position - As of December 31, 2024, the company had cash and cash equivalents of $66 million and marketable securities of $83 million, which are expected to meet anticipated cash needs for at least the next 12 months[169] - Net operating cash outflows were $94 million for the year ended December 31, 2024, compared to $341 million in 2023, primarily driven by a net loss of $75 million in 2024[170][175] - Net cash used in investing activities was $68 million for the year ended December 31, 2024, primarily due to $168 million in purchases of marketable securities[177] - Net cash used in financing activities was $1 million for the year ended December 31, 2024, due to payments of taxes related to employee restricted stock unit settlements[179] Tax and Valuation - The company is subject to income taxes in the U.S. and various international jurisdictions, requiring significant judgment and estimation[198] - Deferred tax liabilities and assets are recognized for expected future tax consequences of temporary differences and net operating loss carryforwards[199] - The company utilizes the Black-Scholes option pricing model and Monte Carlo Simulation model for estimating the fair value of stock options and PSUs, respectively[196] - The assumptions in the valuation models are based on management's estimates, which involve uncertainties and could lead to materially different stock-based compensation expenses in the future[197] Future Outlook - The company anticipates continued losses from operations as it incurs costs related to identifying and completing an acquisition[134] - The company expects to incur minimal administrative costs in overseeing and curating the remaining assets post-Asset Sale[142] - The company had an accumulated deficit of $3.3 billion as of December 31, 2024[134] - As a "smaller reporting company," the company is not required to provide quantitative and qualitative disclosures about market risk[200]
Contextlogic Inc.(LOGC) - 2024 Q4 - Annual Report