ContextLogic 10-Q 12 May 21 2021 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares shares in Millions	3 Months Ended
	Mar. 31, 2021	Apr. 30, 2021
Document And Entity Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2021
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q1
Entity Registrant Name	ContextLogic Inc.
Entity Central Index Key	0001822250
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Current Fiscal Year End Date	--12-31
Entity Filer Category	Non-accelerated Filer
Entity Shell Company	false
Entity Small Business	false
Entity Emerging Growth Company	false
Title of 12(b) Security	Class A Common Stock, $0.0001 par value
Trading Symbol	WISH
Security Exchange Name	NASDAQ
Entity File Number	001-39775
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	27-2930953
Entity Address, Address Line One	One Sansome Street 40th Floor
Entity Address, City or Town	San Francisco
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	94104
City Area Code	415
Local Phone Number	432-7323
Document Quarterly Report	true
Document Transition Report	false
Entity Bankruptcy Proceedings, Reporting Current	true
Class A Common Stock
Document And Entity Information [Line Items]
Entity Common Stock, Shares Outstanding		505
Class B Common Stock
Document And Entity Information [Line Items]
Entity Common Stock, Shares Outstanding		114

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions	Mar. 31, 2021	Dec. 31, 2020
Current assets:
Cash and cash equivalents	$ 1,620	$ 1,965
Marketable securities	154	164
Funds receivable	65	83
Prepaid expenses and other current assets	88	102
Total current assets	1,927	2,314
Property and equipment, net	23	25
Right-of-use assets	39	43
Marketable securities		4
Other assets	10	11
Total assets	1,999	2,397
Current liabilities:
Accounts payable	291	434
Merchants payable	381	454
Refunds liability	54	77
Accrued liabilities	309	367
Total current liabilities	1,035	1,332
Lease liabilities, non-current	34	38
Total liabilities	1,069	1,370
Commitments and contingencies (Note 7)
Stockholders’ equity:
Preferred stock, $0.0001 par value: 100 shares authorized as of March 31, 2021 and December 31, 2020; No shares issued and outstanding as of March 31, 2021 and December 31, 2020
Additional paid-in capital	3,243	3,210
Accumulated other comprehensive income (loss)	(1)	1
Accumulated deficit	(2,312)	(2,184)
Total stockholders’ equity	930	1,027
Total liabilities and stockholders’ equity	$ 1,999	$ 2,397

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Mar. 31, 2021	Dec. 31, 2020
Preferred stock, par value	$ 0.0001	$ 0.0001
Preferred stock, shares authorized	100,000,000	100,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value	$ 0.0001	$ 0.0001
Common stock, shares authorized	3,500,000,000	3,500,000,000
Common stock, shares issued	618,000,000	587,000,000
Common stock, shares outstanding	618,000,000	587,000,000
Class A Common Stock
Common stock, par value	$ 0.0001	$ 0.0001
Common stock, shares authorized	3,000,000,000	3,000,000,000
Common stock, shares issued	501,000,000	478,000,000
Common stock, shares outstanding	501,000,000	478,000,000
Class B Common Stock
Common stock, par value	$ 0.0001	$ 0.0001
Common stock, shares authorized	500,000,000	500,000,000
Common stock, shares issued	117,000,000	109,000,000
Common stock, shares outstanding	117,000,000	109,000,000

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) shares in Millions, $ in Millions	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Income Statement [Abstract]
Revenue	$ 772	$ 440
Cost of revenue	335	156
Gross profit	437	284
Operating expenses:
Sales and marketing	470	295
Product development	51	25
General and administrative	42	18
Total operating expenses	563	338
Loss from operations	(126)	(54)
Other income (expense), net:
Interest and other income, net		3
Remeasurement of redeemable convertible preferred stock warrant liability		(15)
Loss before provision for income taxes	(126)	(66)
Provision for income taxes	2
Net loss	$ (128)	$ (66)
Net loss per share, basic and diluted	$ (0.21)	$ (0.62)
Weighted-average shares used in computing net loss per share, basic and diluted	619	106

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (Unaudited) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Statement Of Income And Comprehensive Income [Abstract]
Net loss	$ (128)	$ (66)
Other comprehensive loss:
Net unrealized holding losses on derivatives	(2)
Comprehensive loss	$ (130)	$ (66)

CONSOLIDATED STATEMENTS OF STOC

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Unaudited) - USD ($) shares in Millions, $ in Millions	Total	Redeemable Convertible Preferred Stock	Common Stock	Additional Paid-in Capital	Accumulated Other Comprehensive Income	Accumulated Deficit
Beginning balance at Dec. 31, 2019	$ (1,439)					$ (1,439)
Beginning balance, Shares at Dec. 31, 2019			103
Temporary Equity, Beginning balance at Dec. 31, 2019		$ 1,536
Temporary Equity, Beginning balance, Shares at Dec. 31, 2019		422
Issuance of common stock upon exercise of options for cash	1		$ 3	$ 1
Net loss and comprehensive loss	(66)					(66)
Net loss	(66)
Ending balance at Mar. 31, 2020	(1,504)			1		(1,505)
Ending balance, Shares at Mar. 31, 2020			106
Temporary Equity, Ending balance, Shares at Mar. 31, 2020		422
Temporary Equity, Ending balance at Mar. 31, 2020		$ 1,536
Beginning balance at Dec. 31, 2020	$ 1,027			3,210	$ 1	(2,184)
Beginning balance, Shares at Dec. 31, 2020	587		587
Issuance of common stock upon exercise of options for cash	$ 1			1
Issuance of common stock upon exercise of options for cash, Shares	2		2
Issuance of common stock upon settlement of restricted stock units, net of tax	$ (5)			(5)
Issuance of common stock upon settlement of restricted stock units, net of tax,Shares			29
Stock-based compensation	37			37
Other comprehensive loss, net	(2)				(2)
Net loss	(128)					(128)
Ending balance at Mar. 31, 2021	$ 930			$ 3,243	$ (1)	$ (2,312)
Ending balance, Shares at Mar. 31, 2021	618		618

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Cash flows from operating activities:
Net loss	$ (128)	$ (66)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	2	2
Non-cash lease expense	4	2
Stock-based compensation expense	37
Remeasurement of redeemable convertible preferred stock warrant liability		15
Other	(3)
Changes in operating assets and liabilities:
Funds receivable	18	8
Prepaid expenses, other current and noncurrent assets	16	7
Accounts payable	(143)	31
Merchants payable	(73)	(122)
Accrued and refund liabilities	(69)	3
Lease liabilities	(4)	(2)
Other current and noncurrent liabilities	(11)	(7)
Net cash used in operating activities	(354)	(129)
Cash flows from investing activities:
Purchases of marketable securities	(53)	(73)
Maturities of marketable securities	67	132
Net cash provided by investing activities	14	59
Cash flows from financing activities:
Payment of taxes related to RSU settlement and other financing activities, net	(5)	1
Net cash provided by (used in) financing activities	(5)	1
Net decrease in cash, cash equivalents and restricted cash	(345)	(69)
Cash, cash equivalents and restricted cash at beginning of period	1,965	754
Cash, cash equivalents and restricted cash at end of period	1,620	685
Reconciliation of cash, cash equivalents, and restricted cash to the condensed consolidated balance sheets:
Cash and cash equivalents	1,620	675
Restricted cash included in other assets in the condensed consolidated balance sheets		10
Cash, cash equivalents and restricted cash at end of period	1,620	$ 685
Supplemental cash flow disclosures:
Cash paid for income taxes, net of refunds	$ 2

Overview, Basis of Presentation

Overview, Basis of Presentation and Significant Accounting Policies	3 Months Ended
	Mar. 31, 2021
Accounting Policies [Abstract]
Overview, Basis of Presentation and Significant Accounting Policies	NOTE 1. OVERVIEW, BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES ContextLogic Inc. (“Wish” or the “Company”) is an ecommerce company that provides a shopping experience that is mobile-first and discovery-based, which connects merchants’ products to users based on user preferences. The Company generates revenue from marketplace and logistics services provided to merchants. The Company was incorporated in the state of Delaware in June 2010 Initial Public Offering In December 2020, the Company completed its initial public offering (“IPO”) of Class A common stock, in which it sold 46 million shares. The shares were sold at an IPO price of $24.00 per share for net proceeds of approximately $1.1 billion, after deducting Basis of Presentation and Consolidation The accompanying condensed consolidated financial statements have been prepared in accordance with United States generally accepted accounting principles (“U.S. GAAP”). The condensed consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. The condensed consolidated financial statements are unaudited, but include all adjustments of a normal recurring nature necessary for a fair presentation of our quarterly results. The consolidated balance sheet as of December 31, 2020 is derived from audited financial statements, however, it does not include all of the information and footnotes required by U.S. GAAP for complete financial statements. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes in our Annual Report on Form 10-K for the year ended December 31, 2020, which was filed with the Securities and Exchange Commission (“SEC”) on March 25, 2021. Use of Estimates The preparation of condensed consolidated financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosures of contingent assets and liabilities at the date of the condensed consolidated financial statements, and the reported amounts of revenue and expenses during the reporting period. These estimates form the basis for judgments the Company makes about the carrying values of its assets and liabilities that are not readily available from other sources. These estimates include, but are not limited to, fair value of financial instruments, useful lives of long-lived assets, fair value of derivative instruments, incremental borrowing rate applied to lease accounting, contingent liabilities, redemption probabilities associated with Wish Cash, allowances for refunds and chargebacks and uncertain tax positions. As of March 31, 2021, the effects of the ongoing COVID-19 pandemic on the Company’s business, results of operations, and financial condition continue to evolve. As a result, many of the Company’s estimates and assumptions required increased judgment and these estimates may change materially in future periods. Segments The Company manages its operations and allocates resources as a single Concentrations of Risk Credit Risk — Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of cash and cash equivalents, funds receivable, marketable securities and derivative financial instruments. The Company’s cash and cash equivalents are held on deposit with creditworthy institutions. Although the Company’s deposits exceed federally insured limits, the Company has not experienced any losses in such accounts. The Company invests its excess cash in money market accounts, U.S. Treasury notes, U.S. Treasury bills, commercial paper and corporate bonds. The Company is exposed to credit risk in the event of a default by the financial institutions holding its cash, cash equivalents and marketable securities for the amounts reflected on the condensed consolidated balance sheets. The Company’s investment policy limits investments to certain types of debt securities issued by the U.S. government, its agencies and institutions with investment-grade credit ratings and places restrictions on maturities and concentration by type and issuer. The Company's derivative financial instruments expose it to credit risk to the extent that the counterparties may be unable to meet the terms of the arrangement. The Company seeks to mitigate such risk by limiting its counterparties to, and by spreading the risk across, major financial institutions. In addition, the potential risk of loss with any one counterparty resulting from this type of credit risk is monitored on a monthly basis. The Company is not required to pledge, nor is it entitled to receive, collateral related to its foreign exchange derivative transactions. The Company is exposed to credit risk in the event of a default by its Payment Service Providers (“PSPs”) The following PSPs each represented 10% or more of the Company’s funds receivable balance: March 31, December 31, 2021 2020 PSP 1 61 % 56 % PSP 2 27 % 27 % Services Risk — The Company serves all of its users using third-party data center and hosting providers. The Company has disaster recovery protocols at the third-party service providers. Even with these procedures for disaster recovery in place, access to the Company’s service could be significantly interrupted, resulting in an adverse effect on its operating results and financial position. No significant interruptions of service were known to have occurred during the three months ended March 31, 2021 and 2020. Summary of Significant Accounting Policies There have been no changes to the Company’s significant accounting policies described in its Annual Report on Form 10-K for the year ended December 31, 2020, filed with the SEC on March 25, 2021, that have had a material impact on its condensed consolidated financial statements. Accounting Pronouncements The Company has reviewed recent accounting pronouncements and concluded they are either not applicable to the business or no material impact is expected on the condensed consolidated financial statements as a result of future adoption.

Disaggregation of Revenue

Disaggregation of Revenue	3 Months Ended
	Mar. 31, 2021
Revenue From Contract With Customer [Abstract]
Disaggregation of Revenue	NOTE 2. DISAGGREGATION OF REVENUE The Company generates revenue from marketplace and logistics services provided to merchants. Revenue is recognized as the Company transfers control of promised goods or services to its users in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services. The Company considers both the merchant and the user to be customers. The Company evaluates whether it is appropriate to recognize revenue on a gross or net basis based upon its evaluation of whether the Company obtains control of the specified goods or services by considering if it is primarily responsible for fulfillment of the promise, has inventory risk, has latitude in establishing pricing and selecting suppliers, among other factors. Based on these factors, marketplace revenue is generally recognized on a net basis and logistics revenue is generally recognized on a gross basis. Revenue excludes any amounts collected on behalf of third parties, including indirect taxes. Marketplace revenue includes commission fees collected in connection with user purchases of the merchants’ products. The commission fees vary depending on factors such as user location, demand, product type, and dynamic pricing. The Company recognizes revenue when a user’s order is processed and the related order information has been made available to the merchant. Commission fees are recognized net of estimated refunds and chargebacks. Marketplace revenue also includes ProductBoost revenue for displaying a merchant’s selected products in preferential locations within the Company’s marketplace. The Company recognizes revenue when the merchants’ selected products are displayed. The Company refers to its marketplace revenue, excluding ProductBoost revenue, as its core marketplace revenue. The Company’s logistics offering for merchants is designed for direct end-to-end single order shipment from a merchant’s location to the user. Logistics services include transportation and delivery of the merchant’s products to the user. Merchants are required to prepay for logistics services on a per order basis. The Company recognizes revenue over time as the merchant simultaneously receives and consumes the logistics services benefit as the services are performed. The Company uses an output method of progress based on days in transit as it best depicts the Company’s progress toward complete satisfaction of the performance obligation. The following table shows the disaggregated revenue for the applicable periods: Three Months Ended March 31, 2021 2020 (in millions) Core marketplace revenue $ 477 $ 340 ProductBoost revenue 50 44 Marketplace revenue 527 384 Logistics revenue 245 56 Revenue $ 772 $ 440 Refer to Note 11 – Geographical Information for the disaggregated revenue by geographical location.

Financial Instruments and Fair

Financial Instruments and Fair Value Measurement	3 Months Ended
	Mar. 31, 2021
Fair Value Disclosures [Abstract]
Financial Instruments and Fair Value Measurement	Note 3. FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENT The Company’s financial instruments consist of cash equivalents, marketable securities, funds receivable, derivative instruments, accounts payable, accrued liabilities and merchants payable. Cash equivalents’ carrying value approximates fair value at the balance sheet dates, due to the short period of time to maturity. Marketable securities and derivative instruments are recognized at fair value. Funds receivable, accounts payable, accrued liabilities and merchants payable carrying values approximate fair value due to the short time to the expected receipt or payment date. Assets and liabilities recognized at fair value on a recurring basis in the condensed consolidated balance sheets consisting of cash equivalents, marketable securities and derivative instruments are categorized based upon the level of judgment associated with the inputs used to measure their fair values. Fair value is defined as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Financial assets and liabilities subject to fair value measurements on a recurring basis and the level of inputs used in such measurements are as follows: March 31, 2021 Total Level 1 Level 2 Level 3 (in millions) Financial assets: Cash equivalents: Money market funds $ 97 $ 97 $ — $ — Marketable securities: U.S. Treasury bills $ 35 $ — $ 35 $ — Commercial paper 62 — 62 — Corporate bonds 52 — 52 — Non-US government 5 — 5 — Total marketable securities $ 154 $ — $ 154 $ — Total financial assets $ 251 $ 97 $ 154 $ — Financial liabilities: Accrued liabilities: Derivative liabilities $ 2 $ — $ 2 $ — Total financial liabilities $ 2 $ — $ 2 $ — December 31, 2020 Total Level 1 Level 2 Level 3 (in millions) Financial assets: Cash equivalents: Money market funds $ 35 $ 35 $ — $ — U.S. Treasury bills 30 — 30 — Commercial paper 9 — 9 — Total cash equivalents $ 74 $ 35 $ 39 $ — Marketable securities: U.S. Treasury bills $ 38 $ — $ 38 $ — Commercial paper 49 — 49 — Corporate bonds 81 — 81 — Total marketable securities $ 168 $ — $ 168 $ — Prepaid and other current assets: Derivative assets $ 3 $ — $ 3 $ — Total financial assets $ 245 $ 35 $ 210 $ — Financial liabilities: Accrued liabilities: Derivative liabilities $ 4 $ — $ 4 $ — Total financial liabilities $ 4 $ — $ 4 $ — The Company classifies cash equivalents and marketable securities within Level 1 or Level 2 because the Company uses quoted market prices or alternative pricing sources and models utilizing market observable inputs to determine their fair value. The derivative asset and liability related to the Company’s foreign currency derivative contracts are classified within Level 2 of the fair value hierarchy as the valuation inputs are based on quoted prices and market observable data of similar instruments in active markets, including currency spot and forward rates. The following table summarizes the contractual maturities of the Company’s marketable securities: March 31, December 31, 2021 2020 Amortized Cost Estimated Fair Value Amortized Cost Estimated Fair Value (in millions) Due within one year $ 154 $ 154 $ 164 $ 164 Due after one year through five years — — 4 4 Total marketable securities $ 154 $ 154 $ 168 $ 168 All of the Company’s available-for-sale marketable securities are subject to a periodic evaluation for a credit loss allowance and impairment review. The Company did not identify any of its available-for-sale marketable securities requiring an allowance for credit loss or as other-than-temporarily impaired in any of the periods presented. Additionally, the unrealized net gain and net loss on available-for-sale marketable securities as of March 31, 2021 and December 31, 2020 were immaterial.

Balance Sheet Components

Balance Sheet Components	3 Months Ended
	Mar. 31, 2021
Balance Sheet Related Disclosures [Abstract]
Balance Sheet Components	NOTE 4. BALANCE SHEET COMPONENTS Accrued Liabilities Accrued liabilities consist of the following: March 31, December 31, 2021 2020 (in millions) Vendor services $ 90 $ 121 Deferred revenue 26 37 Wish Cash liability 48 48 Other 145 161 Total accrued liabilities $ 309 $ 367

Derivative Financial Instrument

Derivative Financial Instruments	3 Months Ended
	Mar. 31, 2021
Derivative Instruments And Hedging Activities Disclosure [Abstract]
Derivative Financial Instruments	NOTE 5. DERIVATIVE FINANCIAL INSTRUMENTS The Company conducts business in certain foreign currencies throughout its worldwide operations, and various entities hold monetary assets or liabilities, earn revenues, or incur costs in currencies other than the entity’s functional currency. As a result, the Company is exposed to foreign exchange gains or losses which impact the Company’s operating results. The Company bills its users based on their local currencies, primarily in U.S. dollars and Euros, and the Company makes payments to the merchants in China for products sold on the Wish platform in Renminbi, which creates exposure to currency rate fluctuations. The Company hedges these cash flow exposures to reduce the risk that its earnings and cash flows will be adversely affected by changes in exchange rates. As part of the Company’s foreign currency risk mitigation strategy, the Company enters into derivative contracts and foreign exchange forward contracts with up to twelve months in duration to hedge exposures for variability in U.S.-dollar equivalent of non-U.S.-dollar denominated cash flows associated with its forecasted revenue related transactions. The Company’s derivatives transactions are not collateralized and do not include collateralization agreements with counterparties. The Company does not use derivative financial instruments for speculative or trading purposes. Volume of Derivative Activity Total gross notional amounts for outstanding derivatives (recognized at fair value) as of the end of period consist of the following: March 31, 2021 December 31, 2020 (in millions) Cash flow hedges $ 250 $ 600 Non-designated hedges 219 422 Total $ 469 $ 1,022 Fair Value of Derivative Financial Instruments March 31, 2021 December 31, 2020 Assets (1) Liabilities (2) Assets (1) Liabilities (2) (in millions) Derivative designated as hedging instruments Cash flow hedges $ — $ 2 $ 3 $ 2 Derivative not designated as hedging instruments Foreign currency forward contracts $ — $ — $ — $ 2 Total derivatives $ — $ 2 $ 3 $ 4 (1) Derivative assets are included in prepaid and other current assets in the condensed consolidated balance sheets. (2) Derivative liabilities are included in accrued liabilities in the condensed consolidated balance sheets. Derivatives in Cash Flow Hedging Relationships The changes in accumulated other comprehensive income resulting from cash flow hedging were as follows: As of March 31, 2021 As of December 31, 2020 (in millions) Balance beginning of the period $ 2 $ — Other comprehensive income before reclassifications 7 9 Amounts recognized in core marketplace revenue and reclassified out of accumulated other comprehensive income (9 ) (7 ) Balance at the end of the period $ — $ 2 The Company recognizes changes in fair value of the cash flow hedges of foreign currency denominated merchants payable in accumulated other comprehensive loss in its consolidated balance sheets until the forecasted transaction occurs. When the forecasted transaction affects earnings, the Company reclassifies the related gain or loss on the cash flow hedge to core marketplace revenue. All amounts in other comprehensive income at period end are expected to be reclassified to earnings within 12 months. In the event the underlying forecasted transaction does not occur, or it becomes probable that it will not occur, the Company reclassifies the gain or loss on the related cash flow hedge from accumulated other comprehensive loss to core marketplace revenue. For the three months ended March 31, 2021, there were no net gains or losses recognized in core marketplace revenue relating to hedges of forecasted transactions that did not occur. The Company did not have a hedging program during the three months ended March 31, 2020. The Company classifies cash flows related to its cash flow hedges as operating activities in its condensed consolidated statements of cash flows. Derivatives Not Designated as Hedging Instruments The net gains on the change in fair value of the Company’s foreign exchange forward contracts not designated as hedging instruments were approximately $4 million for the three months ended March 31, 2021 and were recognized in other income (expense), net in the condensed consolidated statement of operations. The Company did not have a hedging program during the three months ended March 31, 2020. The Company classifies cash flows related to its non-designated hedging instruments as operating activities in its condensed consolidated statements of cash flows.

Operating Leases

Operating Leases	3 Months Ended
	Mar. 31, 2021
Leases [Abstract]
Operating Leases	NOTE 6. OPERATING LEASES The Company leases its facilities and data center co-locations under operating leases with various expiration dates through 2025. Total operating lease cost was $4 million and $3 million for the three months ended March 31, 2021 and 2020, respectively. Short-term lease costs and variable lease costs and sublease income were not material. As of March 31, 2021 and December 31, 2020, the Company’s condensed consolidated balance sheets included right-of-use assets in the amount of $39 million and $43 million, respectively, and lease liabilities in the amount of $14 million and $14 million in accrued liabilities, respectively, and $34 million and $38 million in lease liabilities, non-current, respectively. As of March 31, 2021 and December 31, 2020, the weighted-average remaining lease term was 3.7 years and 3.9 years, respectively, and the weighted-average discount rate used to determine the net present value of the lease liabilities was 6%. Supplemental cash flow information for the Company’s operating leases were as follows: March 31, March 31, 2021 2020 (in millions) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 4 $ 3 The maturities of the Company’s operating lease liabilities are as follows: March 31, 2021 Year ending December 31, (in millions) 2021 (remaining nine months) $ 12 2022 15 2023 11 2024 10 2025 5 Total lease payments 53 Less: imputed interest (5 ) Present value of lease liabilities $ 48

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Mar. 31, 2021
Commitments And Contingencies Disclosure [Abstract]
Commitments and Contingencies	NOTE 7. COMMITMENTS AND CONTINGENCIES Revolving Credit Facility In November 2020, the Company entered into a five-year The Revolving Credit Facility contains customary conditions to borrowing, events of default and covenants, including covenants that restrict the Company’s ability (and the ability of certain of the Company’s subsidiaries) to incur indebtedness, grant liens, make certain fundamental changes and asset sales, make distributions to stockholders, make investments or engage in transactions with affiliates. It also contains a minimum liquidity financial covenant of $350 million, which includes unrestricted cash and any available borrowing capacity under the Revolving Credit Facility. The obligations under the Revolving Credit Facility are secured by liens on substantially all of the Company’s domestic assets and are guaranteed by any material domestic subsidiaries, subject to customary exceptions. A standby letter of credit in the amount of approximately $10 million has been issued under the Revolving Credit Facility in conjunction with the lease of the Company’s headquarters in San Francisco, California. Purchase Obligations During 2019, the Company amended a marketing arrangement which increased the total commitment under the agreement and extended the arrangement to July 31, 2021. As of March 31, 2021, the remaining commitment under the amended agreement was $5 million, which is payable in 2021. Effective September 1, 2019, the Company entered into an amendment to a colocation and cloud services arrangement committing the Company to make payments of $120 million for services over 3 years. As of March 31, 2021, the remaining commitment under this amended agreement was approximately $35 million and is payable within the next two years. Legal Contingencies As of March 31, 2021 and December 31, 2020, there were no legal contingency matters that arose in the ordinary course of business, either individually or in aggregate, that would have a material adverse effect on the financial position, results of operations, or cash flows of the Company. Given the unpredictable nature of legal proceedings, the Company bases its estimate on the information available at the time of the assessment. As additional information becomes available, the Company reassesses the potential liability and may revise the estimate.

Equity Award Activity and Stock

Equity Award Activity and Stock-Based Compensation	3 Months Ended
	Mar. 31, 2021
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Equity Award Activity and Stock-Based Compensation	NOTE 8. EQUITY Award activity and STOCK-based compensation Equity Award Activity A summary of activity under the equity plans and related information is as follows: Options Outstanding RSUs Outstanding Number of Options Weighted- Average Exercise Price Weighted- Average Remaining Contractual Term (In Years) Number of RSUs (in millions) (in millions) Balances at December 31, 2020 75 $ 0.234 3.2 30 Granted — $ — 1 Vested (1) — $ — (3 ) Exercised (2 ) $ 0.154 — Balances at March 31, 2021 (2) 73 $ 0.236 3.0 28 (1) For the three months ended March 31, 2021, approximately 3 million RSUs vested upon satisfying both the service and liquidity vesting conditions. The shares remained unreleased as of March 31, 2021 due to the lock-up provisions related to the Company’s IPO . (2) Outstanding RSUs as of March 31, 2021 include 10 million units of CEO Performance Award. The weighted-average grant date fair value of restricted stock units (“RSUs”) granted during the three months ended March 31, 2021 was $22.01 per share. Stock-Based Compensation Expense Total stock-based compensation expense included in the condensed consolidated statements of operations is as follows: Three Months Ended March 31, 2021 2020 (in millions) Cost of revenue $ 5 $ — Sales and marketing 3 — Product development 15 — General and administrative 14 — Total stock-based compensation $ 37 $ — The Company will recognize the remaining $134 million and $72 million of unrecognized stock-based compensation expense over a weighted-average period of approximately 1.32 years and 3.84 years related to RSUs and CEO Performance Award, respectively. Employee Stock Purchase Plan The Company’s Employee Stock Purchase Plan (“ESPP”) allows eligible employees to purchase shares of the Company’s Class A common stock at a discount through payroll deductions of up to 15% of eligible compensation, subject to caps of $25,000 in any calendar year and 2,500 shares on any purchase date. The ESPP provides for 24-month offering periods, generally beginning in November and May of each year, and each offering period consists of four six-month purchase periods. The initial offering period began on January 1, 2021 and will end in November 2022. The first purchase under the ESPP will be in May 2021. On each purchase date, participating employees will purchase Class A common stock at a price per share equal to 85% of the lesser of the fair market value of the Company’s Class A common stock on (i) the first trading day of the applicable offering period and (2) the last trading day of each purchase period in the applicable offering period. If the stock price of the Company's Class A common stock on any purchase date in an offering period is lower than the stock price on the enrollment date of that offering period, the offering period will immediately reset after the purchase of shares on such purchase date and automatically roll into a new offering period. The Company uses the Black-Scholes option pricing model to determine the fair value of shares to be purchased under the 2020 Employee Stock Purchase Plan (“ESPP”) with the following assumptions on the date of grant: Three Months Ended March 31, 2021 Expected term (in years) 0.38 to 1.88 Risk free interest rate 0.09% to 0.13% Volatility 46.45% to 62.28% Dividend yield — Estimated fair value per ESPP share $4.14 to $8.05

Income Taxes

Income Taxes	3 Months Ended
	Mar. 31, 2021
Income Tax Disclosure [Abstract]
Income Taxes	NOTE 9. INCOME TAXES The Company’s tax provision for the interim periods is determined using an estimate of the annual effective tax rate, adjusted for discrete items, if any, that arise during the period. Each quarter, the Company assesses its estimate of the annual effective tax rate, and if the estimated annual effective tax rate changes, the Company makes a cumulative adjustment in the period of change. The Company’s quarterly tax provision and the estimate of the annual effective tax rate is subject to fluctuation due to several factors, including variability in pre-tax earnings, the geographic distribution of the pre-tax earnings, tax law changes, non-deductible expenses, such as s tock -based compensation, and changes in the estimate of the valuation allowance. The provision for income taxes was $2 million for the three months ended March 31, 2021 and was insignificant for the three months ended March 31, 2020. The year-over-year increase in provision for income taxes was primarily related to international operations. The Company continues to maintain a valuation allowance on its domestic net deferred tax assets which is excluded from the annual effective tax rate estimate. The Company had immaterial unrecognized tax benefits as of March 31, 2021 and December 31, 2020, fully offset by a valuation allowance. These unrecognized tax benefits, if recognized, would not affect the effective tax rate. No interest or penalties were incurred during the years ended March 31, 2021 and 2020. The Company files income tax returns in the U.S. federal jurisdiction and various state and foreign jurisdictions. The Company is not currently under examination by income tax authorities in federal, state or other jurisdictions. All tax returns will remain open for examination by the federal and state authorities for three and four years, respectively, from the date of utilization of any net operating loss or credits. Certain tax years are subject to foreign income tax examinations by tax authorities until the statute of limitations expire.

Net Loss Per Share

Net Loss Per Share	3 Months Ended
	Mar. 31, 2021
Earnings Per Share [Abstract]
Net Loss Per Share	NOTE 10. Net loss per share Basic net income (loss) per share is computed using the weighted average number of common shares outstanding during the period. Diluted net income (loss) per share is computed by giving effect to potentially dilutive common stock equivalents outstanding during the period, as their effect would be dilutive. Potentially dilutive common shares include participating securities and shares issuable upon the exercise of stock options, the exercise of common stock warrants, the vesting of RSUs and each purchase under the 2020 ESPP, under the treasury stock method. In loss periods, basic net loss per share and diluted net loss per share are the same, as the effect of potential common shares is anti-dilutive and therefore excluded. The rights, including the liquidation and dividend rights, of the holders of Class A and Class B common stock are identical, except with respect to voting. As the liquidation and dividend rights are identical, the Company’s undistributed earnings or losses are allocated on a proportionate basis among the holders of both Class A and Class B common stock. As a result, the net income (loss) per share attributed to common stockholders will, therefore, be the same for both Class A and Class B common stock on an individual or combined basis. The following table sets forth the computation of basic and diluted net loss per share: Three Months Ended March 31, 2021 2020 (in millions, except per share data) Numerator: Net loss $ (128 ) $ (66 ) Denominator: Weighted-average shares used in computing net loss per share, basic and diluted 619 106 Net loss per share, basic and diluted $ (0.21 ) $ (0.62 ) The following outstanding shares of potentially dilutive securities were excluded from the computation of diluted net loss per share because including them would have had an anti-dilutive effect: As of March 31, 2021 2020 (in millions) Redeemable convertible preferred stock, all series — 422 Series B warrant — 10 Warrant to purchase common stock 1 1 Common stock options outstanding 73 77 Unvested RSUs outstanding (1) 28 44 Employee Stock Purchase Plan 1 — Total 103 554 (1) Unvested RSUs outstanding as of March 31, 2021 included 10 million units of CEO Performance Award.

Geographical Information

Geographical Information	3 Months Ended
	Mar. 31, 2021
Segment Reporting [Abstract]
Geographical Information	NOTE 11. GEOGRAPHICAL INFORMATION The Company believes it is relevant to disclose geographical revenue information on both a demand basis, determined by the ship-to address of the user, and on a supply basis, determined by the location of the merchants’ operations. Core marketplace revenue by geographic area based on the ship-to address of the user is as follows: Three Months Ended March 31, 2021 2020 (in millions) Europe $ 235 49 % $ 159 47 % North America (1) 186 39 % 126 37 % South America 18 4 % 23 7 % Other 38 8 % 32 9 % Core marketplace revenue $ 477 100 % $ 340 100 % (1) United States accounted for $156 million and $103 million of core marketplace revenue for the three months ended March 31, 2021 and 2020, respectively. China accounted for substantially all of marketplace and logistics revenue during the three months ended March 31, 2021 and 2020 based on the location of the merchants’ operations. The Company’s long-lived tangible assets, which consist of property and equipment, net and operating lease right-of-use assets, net, located in the United States were 87% of the total long-lived tangible assets as of March 31, 2021 and December 31, 2020. The long-lived tangible assets outside the United States were located in China, Canada and the Netherlands.

Overview, Basis of Presentati_2

Overview, Basis of Presentation and Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2021
Accounting Policies [Abstract]
Basis of Presentation and Consolidation	Basis of Presentation and Consolidation The accompanying condensed consolidated financial statements have been prepared in accordance with United States generally accepted accounting principles (“U.S. GAAP”). The condensed consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. The condensed consolidated financial statements are unaudited, but include all adjustments of a normal recurring nature necessary for a fair presentation of our quarterly results. The consolidated balance sheet as of December 31, 2020 is derived from audited financial statements, however, it does not include all of the information and footnotes required by U.S. GAAP for complete financial statements. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes in our Annual Report on Form 10-K for the year ended December 31, 2020, which was filed with the Securities and Exchange Commission (“SEC”) on March 25, 2021.
Use of Estimates	Use of Estimates The preparation of condensed consolidated financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosures of contingent assets and liabilities at the date of the condensed consolidated financial statements, and the reported amounts of revenue and expenses during the reporting period. These estimates form the basis for judgments the Company makes about the carrying values of its assets and liabilities that are not readily available from other sources. These estimates include, but are not limited to, fair value of financial instruments, useful lives of long-lived assets, fair value of derivative instruments, incremental borrowing rate applied to lease accounting, contingent liabilities, redemption probabilities associated with Wish Cash, allowances for refunds and chargebacks and uncertain tax positions. As of March 31, 2021, the effects of the ongoing COVID-19 pandemic on the Company’s business, results of operations, and financial condition continue to evolve. As a result, many of the Company’s estimates and assumptions required increased judgment and these estimates may change materially in future periods.
Segments	Segments The Company manages its operations and allocates resources as a single
Concentration of Risk	Concentrations of Risk Credit Risk — Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of cash and cash equivalents, funds receivable, marketable securities and derivative financial instruments. The Company’s cash and cash equivalents are held on deposit with creditworthy institutions. Although the Company’s deposits exceed federally insured limits, the Company has not experienced any losses in such accounts. The Company invests its excess cash in money market accounts, U.S. Treasury notes, U.S. Treasury bills, commercial paper and corporate bonds. The Company is exposed to credit risk in the event of a default by the financial institutions holding its cash, cash equivalents and marketable securities for the amounts reflected on the condensed consolidated balance sheets. The Company’s investment policy limits investments to certain types of debt securities issued by the U.S. government, its agencies and institutions with investment-grade credit ratings and places restrictions on maturities and concentration by type and issuer. The Company's derivative financial instruments expose it to credit risk to the extent that the counterparties may be unable to meet the terms of the arrangement. The Company seeks to mitigate such risk by limiting its counterparties to, and by spreading the risk across, major financial institutions. In addition, the potential risk of loss with any one counterparty resulting from this type of credit risk is monitored on a monthly basis. The Company is not required to pledge, nor is it entitled to receive, collateral related to its foreign exchange derivative transactions. The Company is exposed to credit risk in the event of a default by its Payment Service Providers (“PSPs”) The following PSPs each represented 10% or more of the Company’s funds receivable balance: March 31, December 31, 2021 2020 PSP 1 61 % 56 % PSP 2 27 % 27 % Services Risk — The Company serves all of its users using third-party data center and hosting providers. The Company has disaster recovery protocols at the third-party service providers. Even with these procedures for disaster recovery in place, access to the Company’s service could be significantly interrupted, resulting in an adverse effect on its operating results and financial position. No significant interruptions of service were known to have occurred during the three months ended March 31, 2021 and 2020.
Accounting Pronouncements	Accounting Pronouncements The Company has reviewed recent accounting pronouncements and concluded they are either not applicable to the business or no material impact is expected on the condensed consolidated financial statements as a result of future adoption.

Overview, Basis of Presentati_3

Overview, Basis of Presentation and Significant Accounting Policies (Tables)	3 Months Ended
	Mar. 31, 2021
Accounting Policies [Abstract]
Schedule of PSPs Each Represented 10% or More of Funds Receivable Balance	The following PSPs each represented 10% or more of the Company’s funds receivable balance: March 31, December 31, 2021 2020 PSP 1 61 % 56 % PSP 2 27 % 27 %

Disaggregation of Revenue (Tabl

Disaggregation of Revenue (Tables)	3 Months Ended
	Mar. 31, 2021
Revenue From Contract With Customer [Abstract]
Summary of Disaggregated Revenue	The following table shows the disaggregated revenue for the applicable periods: Three Months Ended March 31, 2021 2020 (in millions) Core marketplace revenue $ 477 $ 340 ProductBoost revenue 50 44 Marketplace revenue 527 384 Logistics revenue 245 56 Revenue $ 772 $ 440

Financial Instruments and Fai_2

Financial Instruments and Fair Value Measurement (Tables)	3 Months Ended
	Mar. 31, 2021
Fair Value Disclosures [Abstract]
Schedule of Financial Assets and Liabilities Subject to Fair Value Measurements on Recurring Basis	Financial assets and liabilities subject to fair value measurements on a recurring basis and the level of inputs used in such measurements are as follows: March 31, 2021 Total Level 1 Level 2 Level 3 (in millions) Financial assets: Cash equivalents: Money market funds $ 97 $ 97 $ — $ — Marketable securities: U.S. Treasury bills $ 35 $ — $ 35 $ — Commercial paper 62 — 62 — Corporate bonds 52 — 52 — Non-US government 5 — 5 — Total marketable securities $ 154 $ — $ 154 $ — Total financial assets $ 251 $ 97 $ 154 $ — Financial liabilities: Accrued liabilities: Derivative liabilities $ 2 $ — $ 2 $ — Total financial liabilities $ 2 $ — $ 2 $ — December 31, 2020 Total Level 1 Level 2 Level 3 (in millions) Financial assets: Cash equivalents: Money market funds $ 35 $ 35 $ — $ — U.S. Treasury bills 30 — 30 — Commercial paper 9 — 9 — Total cash equivalents $ 74 $ 35 $ 39 $ — Marketable securities: U.S. Treasury bills $ 38 $ — $ 38 $ — Commercial paper 49 — 49 — Corporate bonds 81 — 81 — Total marketable securities $ 168 $ — $ 168 $ — Prepaid and other current assets: Derivative assets $ 3 $ — $ 3 $ — Total financial assets $ 245 $ 35 $ 210 $ — Financial liabilities: Accrued liabilities: Derivative liabilities $ 4 $ — $ 4 $ — Total financial liabilities $ 4 $ — $ 4 $ —
Schedule of Contractual Maturities of Marketable Securities	The following table summarizes the contractual maturities of the Company’s marketable securities: March 31, December 31, 2021 2020 Amortized Cost Estimated Fair Value Amortized Cost Estimated Fair Value (in millions) Due within one year $ 154 $ 154 $ 164 $ 164 Due after one year through five years — — 4 4 Total marketable securities $ 154 $ 154 $ 168 $ 168

Balance Sheet Components (Table

Balance Sheet Components (Tables)	3 Months Ended
	Mar. 31, 2021
Balance Sheet Related Disclosures [Abstract]
Schedule of Accrued Liabilities	Accrued liabilities consist of the following: March 31, December 31, 2021 2020 (in millions) Vendor services $ 90 $ 121 Deferred revenue 26 37 Wish Cash liability 48 48 Other 145 161 Total accrued liabilities $ 309 $ 367

Derivative Financial Instrume_2

Derivative Financial Instruments (Tables)	3 Months Ended
	Mar. 31, 2021
Derivative Instruments And Hedging Activities Disclosure [Abstract]
Summary of Total Gross Notional Amounts of Outstanding Derivatives	Total gross notional amounts for outstanding derivatives (recognized at fair value) as of the end of period consist of the following: March 31, 2021 December 31, 2020 (in millions) Cash flow hedges $ 250 $ 600 Non-designated hedges 219 422 Total $ 469 $ 1,022
Schedule of Fair Value of Derivative Financial Instruments	Fair Value of Derivative Financial Instruments March 31, 2021 December 31, 2020 Assets (1) Liabilities (2) Assets (1) Liabilities (2) (in millions) Derivative designated as hedging instruments Cash flow hedges $ — $ 2 $ 3 $ 2 Derivative not designated as hedging instruments Foreign currency forward contracts $ — $ — $ — $ 2 Total derivatives $ — $ 2 $ 3 $ 4 (1) Derivative assets are included in prepaid and other current assets in the condensed consolidated balance sheets. (2) Derivative liabilities are included in accrued liabilities in the condensed consolidated balance sheets.
Schedule of Changes in Accumulated Other Comprehensive Income	The changes in accumulated other comprehensive income resulting from cash flow hedging were as follows: As of March 31, 2021 As of December 31, 2020 (in millions) Balance beginning of the period $ 2 $ — Other comprehensive income before reclassifications 7 9 Amounts recognized in core marketplace revenue and reclassified out of accumulated other comprehensive income (9 ) (7 ) Balance at the end of the period $ — $ 2

Operating Leases (Tables)

Operating Leases (Tables)	3 Months Ended
	Mar. 31, 2021
Leases [Abstract]
Supplemental Cash Flow Information for Operating Leases	Supplemental cash flow information for the Company’s operating leases were as follows: March 31, March 31, 2021 2020 (in millions) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 4 $ 3
Maturities of Operating Lease Liabilities	The maturities of the Company’s operating lease liabilities are as follows: March 31, 2021 Year ending December 31, (in millions) 2021 (remaining nine months) $ 12 2022 15 2023 11 2024 10 2025 5 Total lease payments 53 Less: imputed interest (5 ) Present value of lease liabilities $ 48

Equity Award Activity and Sto_2

Equity Award Activity and Stock-Based Compensation (Tables)	3 Months Ended
	Mar. 31, 2021
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Summary of Activity Under Equity Plans and Related Information	A summary of activity under the equity plans and related information is as follows: Options Outstanding RSUs Outstanding Number of Options Weighted- Average Exercise Price Weighted- Average Remaining Contractual Term (In Years) Number of RSUs (in millions) (in millions) Balances at December 31, 2020 75 $ 0.234 3.2 30 Granted — $ — 1 Vested (1) — $ — (3 ) Exercised (2 ) $ 0.154 — Balances at March 31, 2021 (2) 73 $ 0.236 3.0 28 (1) For the three months ended March 31, 2021, approximately 3 million RSUs vested upon satisfying both the service and liquidity vesting conditions. The shares remained unreleased as of March 31, 2021 due to the lock-up provisions related to the Company’s IPO . (2) Outstanding RSUs as of March 31, 2021 include 10 million units of CEO Performance Award.
Summary of Stock-Based Compensation Expense	Stock-Based Compensation Expense Total stock-based compensation expense included in the condensed consolidated statements of operations is as follows: Three Months Ended March 31, 2021 2020 (in millions) Cost of revenue $ 5 $ — Sales and marketing 3 — Product development 15 — General and administrative 14 — Total stock-based compensation $ 37 $ —
Summary of Valuation Assumption Used to Determine Fair Value of Shares to be Purchased Under 2020 Employee Stock Purchase Plan ("ESPP")	The Company uses the Black-Scholes option pricing model to determine the fair value of shares to be purchased under the 2020 Employee Stock Purchase Plan (“ESPP”) with the following assumptions on the date of grant: Three Months Ended March 31, 2021 Expected term (in years) 0.38 to 1.88 Risk free interest rate 0.09% to 0.13% Volatility 46.45% to 62.28% Dividend yield — Estimated fair value per ESPP share $4.14 to $8.05

Net Loss Per Share (Tables)

Net Loss Per Share (Tables)	3 Months Ended
	Mar. 31, 2021
Earnings Per Share [Abstract]
Computation of Basic and Diluted Net Loss Per Share	The following table sets forth the computation of basic and diluted net loss per share: Three Months Ended March 31, 2021 2020 (in millions, except per share data) Numerator: Net loss $ (128 ) $ (66 ) Denominator: Weighted-average shares used in computing net loss per share, basic and diluted 619 106 Net loss per share, basic and diluted $ (0.21 ) $ (0.62 )
Summary of Outstanding Shares of Potentially Dilutive Securities Excluded from Computation of Diluted Net Loss Per Share	The following outstanding shares of potentially dilutive securities were excluded from the computation of diluted net loss per share because including them would have had an anti-dilutive effect: As of March 31, 2021 2020 (in millions) Redeemable convertible preferred stock, all series — 422 Series B warrant — 10 Warrant to purchase common stock 1 1 Common stock options outstanding 73 77 Unvested RSUs outstanding (1) 28 44 Employee Stock Purchase Plan 1 — Total 103 554 (1) Unvested RSUs outstanding as of March 31, 2021 included 10 million units of CEO Performance Award.

Geographical Information (Table

Geographical Information (Tables)	3 Months Ended
	Mar. 31, 2021
Segment Reporting [Abstract]
Summary of Revenue by Geographic Area	Core marketplace revenue by geographic area based on the ship-to address of the user is as follows: Three Months Ended March 31, 2021 2020 (in millions) Europe $ 235 49 % $ 159 47 % North America (1) 186 39 % 126 37 % South America 18 4 % 23 7 % Other 38 8 % 32 9 % Core marketplace revenue $ 477 100 % $ 340 100 % (1) United States accounted for $156 million and $103 million of core marketplace revenue for the three months ended March 31, 2021 and 2020, respectively.

Overview, Basis of Presentati_4

Overview, Basis of Presentation and Significant Accounting Policies - Additional Information (Details) $ / shares in Units, shares in Millions, $ in Millions	1 Months Ended	3 Months Ended
	Dec. 31, 2020USD ($)Vote$ / sharesshares	Mar. 31, 2021ClassSegment
Class Of Stock [Line Items]
Entity Incorporation, State or Country Code		DE
Entity incorporation, date		Jun. 30, 2010
Common stock, voting rights description		the Company has two classes of authorized common stock, Class A common stock, which entitles holders to one vote per share, and Class B common stock, which entitles holders to 20 votes per share.
Number of authorized common stock classes | Class		2
Number of operating segment | Segment		1
Number of reportable segment | Segment		1
Class A Common Stock
Class Of Stock [Line Items]
Number of vote per share | Vote	1
Class A Common Stock | IPO
Class Of Stock [Line Items]
Issuance of common stock upon IPO, net of issuance costs, Shares | shares	46
Shares price per share | $ / shares	$ 24
Net proceeds from Issuance of stock	$ 1,100
Underwriting discounts and commissions	52
Offering costs	$ 6
Class B Common Stock
Class Of Stock [Line Items]
Number of vote per share | Vote	20

Overview, Basis of Presentati_5

Overview, Basis of Presentation and Significant Accounting Policies - Schedule of PSPs Each Represented 10% or More of Funds Receivable Balance (Details) - Funds Receivable - Credit Concentration Risk	3 Months Ended	12 Months Ended
	Mar. 31, 2021	Dec. 31, 2020
PSP 1
Concentration Risk [Line Items]
Percentage of funds receivable balance	61.00%	56.00%
PSP 2
Concentration Risk [Line Items]
Percentage of funds receivable balance	27.00%	27.00%

Disaggregation of Revenue - Sum

Disaggregation of Revenue - Summary of Disaggregated Revenue (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Disaggregation Of Revenue [Line Items]
Revenue	$ 772	$ 440
Core Marketplace Revenue
Disaggregation Of Revenue [Line Items]
Revenue	477	340
ProductBoost Revenue
Disaggregation Of Revenue [Line Items]
Revenue	50	44
Marketplace Revenue
Disaggregation Of Revenue [Line Items]
Revenue	527	384
Logistics Revenue
Disaggregation Of Revenue [Line Items]
Revenue	$ 245	$ 56

Financial Instruments and Fai_3

Financial Instruments and Fair Value Measurement - Schedule of Financial Assets and Liabilities Subject to Fair Value Measurements on Recurring Basis (Details) - Recurring - USD ($) $ in Millions	Mar. 31, 2021	Dec. 31, 2020
Financial assets:
Cash equivalents		$ 74
Marketable securities	$ 154	168
Derivative assets		3
Total financial assets	251	245
Financial liabilities:
Derivative liabilities	2	4
Total financial liabilities	2	4
Level 1
Financial assets:
Cash equivalents		35
Total financial assets	97	35
Level 2
Financial assets:
Cash equivalents		39
Marketable securities	154	168
Derivative assets		3
Total financial assets	154	210
Financial liabilities:
Derivative liabilities	2	4
Total financial liabilities	2	4
Money Market Funds
Financial assets:
Cash equivalents	97	35
Money Market Funds | Level 1
Financial assets:
Cash equivalents	97	35
U.S. Treasury Bills
Financial assets:
Cash equivalents		30
Marketable securities	35	38
U.S. Treasury Bills | Level 2
Financial assets:
Cash equivalents		30
Marketable securities	35	38
Commercial Paper
Financial assets:
Cash equivalents		9
Marketable securities	62	49
Commercial Paper | Level 2
Financial assets:
Cash equivalents		9
Marketable securities	62	49
Corporate Bonds
Financial assets:
Marketable securities	52	81
Corporate Bonds | Level 2
Financial assets:
Marketable securities	52	$ 81
Non-U.S. government
Financial assets:
Marketable securities	5
Non-U.S. government | Level 2
Financial assets:
Marketable securities	$ 5

Financial Instruments and Fai_4

Financial Instruments and Fair Value Measurement - Schedule of Contractual Maturities of Marketable Securities (Details) - Recurring - USD ($) $ in Millions	Mar. 31, 2021	Dec. 31, 2020
Amortized Cost
Due within one year	$ 154	$ 164
Due after one year through five years		4
Total marketable securities	154	168
Estimated Fair Value
Due within one year	154	164
Due after one year through five years		4
Total marketable securities	$ 154	$ 168

Balance Sheet Components - Sche

Balance Sheet Components - Schedule of Accrued Liabilities (Details) - USD ($) $ in Millions	Mar. 31, 2021	Dec. 31, 2020
Accrued Liabilities Current [Abstract]
Vendor services	$ 90	$ 121
Deferred revenue	26	37
Wish Cash liability	48	48
Other	145	161
Total accrued liabilities	$ 309	$ 367

Derivative Financial Instrume_3

Derivative Financial Instruments - Additional Information (Details)	3 Months Ended
	Mar. 31, 2021USD ($)
Derivative Instruments And Hedging Activities Disclosures [Line Items]
Net gains or losses recognized in core marketplace revenue relating to hedges of forecasted transactions	$ 0
Net gains on change in fair value of foreign exchange forward contracts	$ 4,000,000
Maximum
Derivative Instruments And Hedging Activities Disclosures [Line Items]
Derivative contract term	12 months
Foreign Exchange Forward Contracts | Maximum
Derivative Instruments And Hedging Activities Disclosures [Line Items]
Derivative contract term	12 months

Derivative Financial Instrume_4

Derivative Financial Instruments - Summary of Total Gross Notional Amounts of Outstanding Derivatives (Details) - USD ($)	Mar. 31, 2021	Dec. 31, 2020
Derivatives Fair Value [Line Items]
Total gross notional amounts of outstanding derivatives	$ 469,000,000	$ 1,022,000,000
Designated Hedges | Cash Flow Hedges
Derivatives Fair Value [Line Items]
Total gross notional amounts of outstanding derivatives	250,000,000	600,000,000
Non-designated Hedges
Derivatives Fair Value [Line Items]
Total gross notional amounts of outstanding derivatives	$ 219,000,000	$ 422,000,000

Derivative Financial Instrume_5

Derivative Financial Instruments - Schedule of Fair Value of Derivative Financial Instruments (Details) - USD ($) $ in Millions	Mar. 31, 2021	Dec. 31, 2020
Prepaid and Other Current Assets
Derivatives Fair Value [Line Items]
Derivative assets		$ 3
Accrued Liabilities
Derivatives Fair Value [Line Items]
Derivative liabilities	$ 2	4
Designated Hedges | Cash Flow Hedges | Prepaid and Other Current Assets
Derivatives Fair Value [Line Items]
Derivative assets		3
Designated Hedges | Cash Flow Hedges | Accrued Liabilities
Derivatives Fair Value [Line Items]
Derivative liabilities	$ 2	2
Non-designated Hedges | Foreign Exchange Forward Contracts | Accrued Liabilities
Derivatives Fair Value [Line Items]
Derivative liabilities		$ 2

Derivative Financial Instrume_6

Derivative Financial Instruments - Schedule of Changes in Accumulated Other Comprehensive Income (Details) - USD ($) $ in Millions	3 Months Ended	12 Months Ended
	Mar. 31, 2021	Dec. 31, 2020
Derivative Instruments And Hedging Activities Disclosure [Abstract]
Balance beginning of the period	$ 2
Other comprehensive income before reclassifications	7	$ 9
Amounts recognized in core marketplace revenue and reclassified out of accumulated other comprehensive income	$ (9)	(7)
Balance at the end of the period		$ 2

Operating Leases - Additional I

Operating Leases - Additional Information (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Dec. 31, 2020
Leases [Abstract]
Lessee operating lease expiration date year	2025
Operating lease cost	$ 4	$ 3
Right-of-use assets	39		$ 43
Operating lease, liabilities current	$ 14		$ 14
Operating lease, liability current, Statement of financial position [Extensible List]	Accrued liabilities		Accrued liabilities
Lease liabilities, non-current	$ 34		$ 38
Weighted-average remaining lease term	3 years 8 months 12 days		3 years 10 months 24 days
Weighted-average discount rate	6.00%		6.00%

Operating Leases - Supplemental

Operating Leases - Supplemental Cash Flow Information for Operating Leases (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$ 4	$ 3

Operating Leases - Maturities o

Operating Leases - Maturities of Operating Lease Liabilities (Details) $ in Millions	Mar. 31, 2021USD ($)
Leases [Abstract]
2021 (remaining nine months)	$ 12
2022	15
2023	11
2024	10
2025	5
Total lease payments	53
Less: imputed interest	(5)
Present value of lease liabilities	$ 48

Commitments and Contingencies -

Commitments and Contingencies - Additional Information (Details) - USD ($)	Sep. 01, 2019	Nov. 30, 2020	Mar. 31, 2021
Marketing Arrangement
Commitments And Contingencies Disclosure [Line Items]
Purchase obligations, remaining commitment			$ 5,000,000
Purchase obligations, payable year			2021
Colocation and Cloud Services Arrangement
Commitments And Contingencies Disclosure [Line Items]
Purchase obligations, remaining commitment			$ 35,000,000
Purchase commitment amount	$ 120,000,000
Purchase commitment, period	3 years
Purchase obligations, payable period			2 years
Revolving Credit Facility
Commitments And Contingencies Disclosure [Line Items]
Minimum liquidity financial covenant			$ 350,000,000
Standby letter of credit			10,000,000
Borrowings under credit facility			$ 0
Senior Secured Debt | Revolving Credit Facility
Commitments And Contingencies Disclosure [Line Items]
Senior secured revolving credit facility, term		5 years
Senior secured revolving credit facility		$ 280,000,000
Commitment fee percentage on unused portion of aggregate commitments		0.25%
Commitment fee percentage		1.50%
Senior Secured Debt | Revolving Credit Facility | Adjusted LIBOR
Commitments And Contingencies Disclosure [Line Items]
Revolving credit facility, variable interest rate		1.50%
Senior Secured Debt | Revolving Credit Facility | Alternative Base Rate
Commitments And Contingencies Disclosure [Line Items]
Revolving credit facility, variable interest rate		0.50%
Senior Secured Debt | Revolving Credit Facility | Maximum
Commitments And Contingencies Disclosure [Line Items]
Aggregate commitments		$ 100,000,000

Equity Award Activity and Sto_3

Equity Award Activity and Stock-Based Compensation - Summary of Activity Under Equity Plans and Related Information (Details) - $ / shares shares in Millions	3 Months Ended	12 Months Ended
	Mar. 31, 2021	Dec. 31, 2020
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Number of Options, Beginning balance	75
Number of Options, Exercised	(2)
Number of Options, Ending balance	73	75
Weighted-Average Exercise Price, Beginning balance	$ 0.234
Weighted-Average Exercise Price, Exercised	0.154
Weighted-Average Exercise Price, Ending balance	$ 0.236	$ 0.234
Weighted-Average Remaining Contractual Term	3 years	3 years 2 months 12 days
Restricted Stock Units (“RSUs”)
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Number of Restricted Stock Units, Beginning balance	30
Number of Restricted Stock Units, Granted	1
Number of Restricted Stock Units, Vested	(3)
Number of Restricted Stock Units, Ending balance	28	30

Equity Award Activity and Sto_4

Equity Award Activity and Stock-Based Compensation - Summary of Activity Under Equity Plans and Related Information (Parenthetical) (Details) shares in Millions	3 Months Ended
	Mar. 31, 2021shares
Restricted Stock Units (“RSUs”)
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Number of shares vested	3
Number of Restricted Stock Units, Granted	1
Performance-Based Units (“PSUs”)
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Number of Restricted Stock Units, Granted	10

Equity Award Activity and Sto_5

Equity Award Activity and Stock-Based Compensation - Additional Information (Details)	3 Months Ended
	Mar. 31, 2021USD ($)$ / sharesshares
Class A Common Stock
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Percentage of price per share	85.00%
2020 Employee Stock Purchase Plan | Class A Common Stock
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Percentage of eligible compensation to purchase shares at discount	15.00%
Maximum eligible compensation to purchase shares at discount	$ 25,000
Maximum number of shares eligible to purchase by an employee on purchase date | shares	2,500
Share based compensation purchase plan offering period	24 months
Share based compensation first purchase date	2021-05
Share-based payment award, description	The ESPP provides for 24-month offering periods, generally beginning in November and May of each year, and each offering period consists of four six-month purchase periods.
Restricted Stock Units (“RSUs”)
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Weighted average grant date fair value, granted | $ / shares	$ 22.01
Unrecognized compensation expenses	$ 134,000,000
Unrecognized compensation expenses, recognition period	1 year 3 months 25 days
CEO Performance Award
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Unrecognized compensation expenses	$ 72,000,000
Unrecognized compensation expenses, recognition period	3 years 10 months 2 days

Equity Award Activity and Sto_6

Equity Award Activity and Stock-Based Compensation - Summary of Stock-Based Compensation Expense (Details) $ in Millions	3 Months Ended
	Mar. 31, 2021USD ($)
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Total stock-based compensation	$ 37
Cost of Revenue
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Total stock-based compensation	5
Sales and Marketing
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Total stock-based compensation	3
Product Development
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Total stock-based compensation	15
General and Administrative
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Total stock-based compensation	$ 14

Equity Award Activity and Sto_7

Equity Award Activity and Stock-Based Compensation - Summary of Valuation Assumption Used to Determine Fair Value of Shares to be Purchased Under 2020 Employee Stock Purchase Plan ("ESPP") (Details) - 2020 Employee Stock Purchase Plan	3 Months Ended
	Mar. 31, 2021$ / shares
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Risk free interest rate, minimum	0.09%
Risk free interest rate, maximum	0.13%
Volatility, minimum	46.45%
Volatility, maximum	62.28%
Minimum [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Expected term (in years)	4 months 17 days
Estimated fair value per ESPP share	$ 4.14
Maximum
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Expected term (in years)	1 year 10 months 17 days
Estimated fair value per ESPP share	$ 8.05

Income Taxes - Additional Infor

Income Taxes - Additional Information (Details) - USD ($)	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Income Taxes [Line Items]
Provision for income taxes	$ 2,000,000
Unrecognized tax benefits would affect effective tax rate	0
Unrecognized tax benefits interest or penalties	$ 0	$ 0
Federal
Income Taxes [Line Items]
Open for examination tax period	3 years
State
Income Taxes [Line Items]
Open for examination tax period	4 years

Net Loss Per Share - Computatio

Net Loss Per Share - Computation of Basic and Diluted Net Loss Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Numerator:
Net loss	$ (128)	$ (66)
Denominator:
Weighted-average shares used in computing net loss per share, basic and diluted	619	106
Net loss per share, basic and diluted	$ (0.21)	$ (0.62)

Net Loss Per Share - Summary of

Net Loss Per Share - Summary of Outstanding Shares of Potentially Dilutive Securities Excluded from Computation of Diluted Net Loss Per Share (Details) - shares shares in Millions	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Anti-dilutive securities excluded from computation of earnings per share	103	554
Redeemable Convertible Preferred Stock
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Anti-dilutive securities excluded from computation of earnings per share		422
Series B Warrant
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Anti-dilutive securities excluded from computation of earnings per share		10
Warrant to Purchase Common Stock
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Anti-dilutive securities excluded from computation of earnings per share	1	1
Common Stock Options Outstanding
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Anti-dilutive securities excluded from computation of earnings per share	73	77
Unvested RSUs Outstanding
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Anti-dilutive securities excluded from computation of earnings per share	28	44
Employee Stock Purchase Plan
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Anti-dilutive securities excluded from computation of earnings per share	1

Net Loss Per Share Attributable

Net Loss Per Share Attributable to Common Stockholders - Summary of Outstanding Shares of Potentially Dilutive Securities Excluded from Computation of Diluted Net Loss Per Share (Parenthetical) (Details) shares in Millions	Mar. 31, 2021shares
CEO Performance Award
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Unvested share outstanding	10

Geographical Information - Summ

Geographical Information - Summary of Revenue by Geographic Area (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Entity Wide Revenue Major Customer [Line Items]
Revenue	$ 772	$ 440
Core Marketplace Revenue
Entity Wide Revenue Major Customer [Line Items]
Revenue	$ 477	$ 340
Core Marketplace Revenue | Revenue | Geographic Concentration Risk
Entity Wide Revenue Major Customer [Line Items]
Revenue percentage	100.00%	100.00%
Core Marketplace Revenue | Europe
Entity Wide Revenue Major Customer [Line Items]
Revenue	$ 235	$ 159
Core Marketplace Revenue | Europe | Revenue | Geographic Concentration Risk
Entity Wide Revenue Major Customer [Line Items]
Revenue percentage	49.00%	47.00%
Core Marketplace Revenue | North America
Entity Wide Revenue Major Customer [Line Items]
Revenue	$ 186	$ 126
Core Marketplace Revenue | North America | Revenue | Geographic Concentration Risk
Entity Wide Revenue Major Customer [Line Items]
Revenue percentage	39.00%	37.00%
Core Marketplace Revenue | South America
Entity Wide Revenue Major Customer [Line Items]
Revenue	$ 18	$ 23
Core Marketplace Revenue | South America | Revenue | Geographic Concentration Risk
Entity Wide Revenue Major Customer [Line Items]
Revenue percentage	4.00%	7.00%
Core Marketplace Revenue | Other
Entity Wide Revenue Major Customer [Line Items]
Revenue	$ 38	$ 32
Core Marketplace Revenue | Other | Revenue | Geographic Concentration Risk
Entity Wide Revenue Major Customer [Line Items]
Revenue percentage	8.00%	9.00%

Geographical Information - Su_2

Geographical Information - Summary of Revenue by Geographic Area (Parenthetical) (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Entity Wide Revenue Major Customer [Line Items]
Revenue	$ 772	$ 440
Core Marketplace Revenue
Entity Wide Revenue Major Customer [Line Items]
Revenue	477	340
Core Marketplace Revenue | United States
Entity Wide Revenue Major Customer [Line Items]
Revenue	$ 156	$ 103

Geographical Information - Addi

Geographical Information - Additional Information (Details)	3 Months Ended	12 Months Ended
	Mar. 31, 2021	Dec. 31, 2020
United States | Long-lived Tangible Assets | Geographic Concentration Risk
Entity Wide Revenue Major Customer [Line Items]
Long-lived tangible assets percentage	87.00%	87.00%