LightInTheBox Announces (1) Fourth Quarter and Full Year 2023 Financial Results and (2) Receipt of Non-compliance Letter from NYSE Regarding ADS Trading Price
- 25% revenue increase to $629.4 million in 2023 driven by apparel sales
- Company's net loss narrowed by 34% year-over-year to $6.3 million
- Q4 2023 total revenues decreased by 13.3% to $135.6 million
- Q4 2023 net loss reduced to $4.3 million
- Cash and cash equivalents decreased to $71.7 million as of December 31, 2023
- Received NYSE notification due to low stock price
- Q4 2023 experienced a decline in revenues
- Decrease in cash and cash equivalents from 2022 to 2023
Insights
The financial results of LightInTheBox Holding Co., Ltd. indicate a mixed performance, with a substantial year-over-year revenue increase of 25% for the full year, yet a decline of 13.3% in the fourth quarter. This divergence suggests a potential slowdown in growth momentum, which is a concern for investors. The company's focus on apparel, which now accounts for over 82% of total revenues, has contributed to an improved gross margin. However, the net losses, although reduced from the previous year, still raise questions about the company's path to profitability.
From a stock market perspective, the notification from the NYSE regarding the company's ADSs trading below $1 could lead to increased volatility in the stock price. This 'below criteria' status is a red flag that may affect investor confidence and could potentially lead to delisting if not addressed. The share repurchase program, which aims to repurchase up to $10 million in ADSs, could be seen as a move to bolster the stock price and provide a temporary cushion against market pressure. However, the efficacy of such a program in the long term is debatable, especially if the underlying financial health of the company does not improve.
LightInTheBox's strategy to enhance customer experience and localize operations in key markets like the United States is a response to the increasingly competitive e-commerce landscape. The emphasis on proprietary technology and data analytics capabilities is a positive move, indicating the company is striving to refine its product offerings and marketing strategies to align with consumer demands. This could potentially lead to improved customer retention and acquisition rates.
However, the high selling and marketing expenses, which represent 48.1% of total revenues for the full year, suggest a heavy reliance on marketing to drive sales. This could be a point of concern regarding the sustainability of revenue growth without corresponding profitability. The company's outlook for the first quarter of 2024, expecting net revenues to be between $70 million and $80 million, reflects a cautious stance, possibly due to seasonality or anticipated market challenges.
The context of a challenging macro environment mentioned by the CEO of LightInTheBox is important to understanding the company's financial performance. Economic factors such as consumer spending habits, global trade tensions and currency fluctuations can significantly impact international e-commerce businesses. The company's ability to navigate these challenges while still achieving a 25% increase in revenues year-over-year is noteworthy. However, the decrease in cash reserves from $94.6 million to $71.7 million could limit the company's ability to invest in growth and innovation, which may be necessary to maintain competitiveness in the long term.
Moreover, the company's future performance will likely be influenced by broader economic trends, including consumer confidence and discretionary spending. As e-commerce becomes more saturated, companies like LightInTheBox must continually adapt to maintain market share and achieve profitability, especially when facing macroeconomic headwinds.
Fourth Quarter and Full Year 2023 Financial Highlights
Three Months Ended | Year-over- | Twelve Months Ended | Year-over- | |||||||||||||||||||||
In millions, | December 31, | December 31, | Year % | December 31, | December 31, | Year % | ||||||||||||||||||
except percentages | 2022 | 2023 | Change | 2022 | 2023 | Change | ||||||||||||||||||
Total revenues | $ | 156.4 | $ | 135.6 | (13.3) | % | $ | 503.6 | $ | 629.4 | 25.0 % | |||||||||||||
- Apparel sales | $ | 123.9 | $ | 108.5 | (12.4) | % | $ | 399.5 | $ | 518.3 | 29.7 % | |||||||||||||
Apparel sales/total | 79.3 | % | 80.1 | % | 0.8 | ppts | 79.3 | % | 82.3 | % | 3.0ppts | |||||||||||||
Gross margin | 53.9 | % | 55.6 | % | 1.7 | ppts | 54.6 | % | 57.2 | % | 2.6ppts | |||||||||||||
Net loss | $ | (48.3) | $ | (4.3) | $ | (56.6) | $ | (9.6) | ||||||||||||||||
Adjusted EBITDA | $ | (3.8) | $ | (3.3) | $ | (9.5) | $ | (6.3) |
As of December 31, | As of December 31, | |||||||
In millions | 2022 | 2023 | ||||||
Cash, cash equivalents and restricted cash | $ | 94.6 | $ | 71.7 | ||||
Mr. Jian He, Chairman and CEO of LightInTheBox, commented, "In 2023, as we strategically focused on high-quality development, we delivered hard-won results amid the challenging macro environment and increasingly competitive landscape. Our full-year revenues increased by
"Heading into 2024, we will navigate the evolving market dynamics with a greater emphasis on enhancing customer experience and honing our localized operations in key markets such as
Fourth Quarter 2023 Financial Results
Total revenues decreased by
Total cost of revenues was
Gross profit in the fourth quarter of 2023 was
Total operating expenses in the fourth quarter of 2023 were
- Fulfillment expenses in the fourth quarter of 2023 were
, compared with$8.1 million in the same quarter of 2022. As a percentage of total revenues, fulfillment expenses were$8.9 million 5.9% in the fourth quarter of 2023, compared with5.7% in the same quarter of 2022 and5.4% in the third quarter of 2023. - Selling and marketing expenses in the fourth quarter of 2023 were
, compared with$65.8 million in the same quarter of 2022. As a percentage of total revenues, selling and marketing expenses were$72.3 million 48.5% in the fourth quarter of 2023, compared with46.2% in the same quarter of 2022 and47.8% in the third quarter of 2023. - G&A expenses in the fourth quarter of 2023 were
, compared with$6.8 million in the same quarter of 2022. As a percentage of total revenues, G&A expenses were$8.3 million 5.0% in the fourth quarter of 2023, compared with5.3% in the same quarter of 2022 and6.5% in the third quarter of 2023. As part of G&A expenses, R&D expenses in the fourth quarter of 2023 were , compared with$3.6 million in the same quarter of 2022 and$5.3 million in the third quarter of 2023.$5.2 million
Loss from operations was
Net loss was
Net loss per American Depository Share ("ADS") was
In the fourth quarter of 2023, the Company's basic weighted average number of ADSs used in computing the net income per ADS was 112,118,376.
Adjusted EBITDA was a loss of
As of December 31, 2023, the Company had cash and cash equivalents and restricted cash of
Full Year 2023 Financial Results
Total revenues increased by
Total cost of revenues was
Gross profit for the full year of 2023 was
Total operating expenses for the full year of 2023 were
- Fulfillment expenses for the full year of 2023 were
, compared with$34.9 million in 2022. As a percentage of total revenues, fulfillment expenses were$30.6 million 5.5% for the full year 2023, compared with6.1% in 2022. - Selling and marketing expenses for the full year of 2023 were
, compared with$302.7 million in 2022. As a percentage of total revenues, selling and marketing expenses were$222.6 million 48.1% for the full year 2023, compared with44.2% in 2022. - G&A expenses for the full year of 2023 were
, compared with$34.1 million in 2022. As a percentage of total revenues, G&A expenses were$36.3 million 5.4% for the full year of 2023, compared with7.2% in 2022. Included in G&A expenses, R&D expenses for the full year of 2023 were , compared with$19.1 million in 2022.$19.4 million
Loss from operations was
Net loss was
Net loss per American Depository Share ("ADS") was
For the full year of 2023, the Company's basic weighted average number of ADSs used in computing the net loss per ADS was 112,970,301.
Adjusted EBITDA was a loss of
The financial statements for the full year ended December 31, 2023 in this press release have not been audited or reviewed by the Company's independent registered accounting firm. The audited financial statements for the year ended December 31, 2023 to be disclosed in the Company's Form 20-F may have discrepancies with the above-mentioned unaudited financial statements.
Share Repurchase Program
On June 27, 2023, the Company's board of directors authorized a share repurchase program under which the Company may repurchase up to
Business Outlook
For the first quarter of 2024, based on current information available to the Company and business seasonality, the Company expects net revenues to be between
Non-GAAP Financial Measure
In evaluating the business, the Company considers and uses a non-GAAP measure, Adjusted EBITDA, as a supplemental measure to review and assess operating performance. The presentation of this non-GAAP financial measure is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with accounting principles generally accepted in
The Company presents this non-GAAP financial measure because it is used by management to evaluate operating performance and formulate business plans. The Company believes that the non-GAAP financial measure helps identify underlying trends in its business. The Company also believes that the non-GAAP financial measure could provide further information about the Company's results of operations and enhance the overall understanding of the Company's past performance and future prospects.
The non-GAAP financial measure is not defined under
For more information on the non-GAAP financial measure, please see the table captioned "Unaudited and unreviewed Reconciliations of GAAP and Non-GAAP Result" set forth at the end of this press release.
Receipt of Non-compliance Letter from NYSE Regarding ADS Trading Price
Following the receipt of the notification, the Company has six months to bring its security price and average security price back above
The Company has notified the NYSE on March 21, 2024 of its intention to cure such deficiency. The Company intends to monitor the market conditions of its listed securities and will consider various measures to cure the deficiency. The Company's ADSs will continue to be listed and traded on the NYSE, subject to compliance with other NYSE continued listing standards and other rights of the NYSE to delist the ADSs. The Company is currently in compliance with all other NYSE continued listing standards. The NYSE notification does not affect the Company's business operations or its Securities and Exchange Commission reporting requirements.
Conference Call
The Company's management will hold an earnings conference call at 8:00 a.m. Eastern Time on March 25, 2024 (8:00 p.m.
Preregistration Information
Participants can register for the conference call by going to https://s1.c-conf.com/diamondpass/10037719-zotk1g.html. Upon registration, participants will receive dial-in numbers, an event passcode, and a unique access PIN.
To join the conference, simply dial the number in the calendar invite you receive after preregistering, enter the event passcode followed by your unique access PIN, and you will be connected to the conference instantly.
A telephone replay will be available two hours after the conclusion of the conference call through April 1, 2024. The dial-in details are:
US/ | +1-855-883-1031 | |
800-101-3223 | ||
800-930-639 | ||
Replay PIN: | 10037719 |
Additionally, a live and archived webcast of the conference call will be available on the Company's Investor Relations website at http://ir.lightinthebox.com.
About LightInTheBox Holding Co., Ltd.
LightInTheBox is an apparel e-commerce retailer that ships products to consumers worldwide. With a focus on serving its middle-aged and senior customers, LightInTheBox leverages its global supply chain and logistics networks, along with its in-house R&D and design capabilities to offer a wide selection of comfortable, aesthetically pleasing and visually interesting apparel that brings fresh joy to customers. LightInTheBox operates its business through www.lightinthebox.com, www.ezbuy.sg and other websites as well as mobile applications, which are available in over 20 major languages and over 140 countries and regions. The Company is headquartered in
For more information, please visit www.lightinthebox.com.
Investor Relations Contact
Investor Relations
LightInTheBox Holding Co., Ltd.
Email: ir@lightinthebox.com
Jenny Cai
Piacente Financial Communications
Email: lightinthebox@tpg-ir.com
Brandi Piacente
Piacente Financial Communications
Tel: +1-212-481-2050
Email: lightinthebox@tpg-ir.com
Forward-Looking Statements
This announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of the
LightInTheBox may also make written or oral forward-looking statements in its periodic reports to the
LightInTheBox Holding Co., Ltd. | ||||||||
Unaudited and unreviewed Condensed Consolidated Balance Sheets | ||||||||
( | ||||||||
As of December 31, | As of December 31, | |||||||
2022 | 2023 | |||||||
ASSETS | ||||||||
Current Assets | ||||||||
Cash and cash equivalents | 88,575 | 66,425 | ||||||
Restricted cash | 5,993 | 5,279 | ||||||
Accounts receivable, net of allowance for credit losses | 695 | 634 | ||||||
Inventories | 14,260 | 5,767 | ||||||
Prepaid expenses and other current assets | 6,452 | 6,875 | ||||||
Total current assets | 115,975 | 84,980 | ||||||
Property and equipment, net | 2,946 | 2,789 | ||||||
Intangible assets, net | 5,630 | 3,604 | ||||||
Goodwill | 28,177 | 27,393 | ||||||
Operating lease right-of-use assets | 10,874 | 6,559 | ||||||
Long-term rental deposits | 1,211 | 392 | ||||||
Other non-current assets | - | 592 | ||||||
TOTAL ASSETS | 164,813 | 126,309 | ||||||
LIABILITIES AND EQUITY / (DEFICIT) | ||||||||
Current Liabilities | ||||||||
Accounts payable | 26,518 | 15,846 | ||||||
Advance from customers | 32,241 | 17,001 | ||||||
Operating lease liabilities | 4,993 | 5,046 | ||||||
Accrued expenses and other current liabilities | 90,357 | 94,622 | ||||||
Total current liabilities | 154,109 | 132,515 | ||||||
Operating lease liabilities | 6,576 | 1,915 | ||||||
Long-term payable | 34 | - | ||||||
Deferred tax liabilities | 111 | 154 | ||||||
Unrecognized tax benefits | 107 | 107 | ||||||
TOTAL LIABILITIES | 160,937 | 134,691 | ||||||
EQUITY / (DEFICIT) | ||||||||
Ordinary shares | 17 | 17 | ||||||
Additional paid-in capital | 282,722 | 283,137 | ||||||
Treasury shares | (28,615) | (30,359) | ||||||
Accumulated other comprehensive loss | (1,024) | (1,856) | ||||||
Accumulated deficit | (249,224) | (259,321) | ||||||
TOTAL EQUITY / (DEFICIT) | 3,876 | (8,382) | ||||||
TOTAL LIABILITIES AND EQUITY / (DEFICIT) | 164,813 | 126,309 |
LightInTheBox Holding Co., Ltd. | ||||||||||||||||
Unaudited and unreviewed Condensed Consolidated Statements of Operations | ||||||||||||||||
( | ||||||||||||||||
Three Months Ended | Twelve Months Ended | |||||||||||||||
Dec 31, | Dec 31, | |||||||||||||||
2022 | 2023 | 2022 | 2023 | |||||||||||||
Revenues | ||||||||||||||||
Product sales | 152,797 | 130,905 | 491,949 | 617,240 | ||||||||||||
Services and others | 3,621 | 4,651 | 11,619 | 12,188 | ||||||||||||
Total revenues | 156,418 | 135,556 | 503,568 | 629,428 | ||||||||||||
Cost of revenues | ||||||||||||||||
Product sales | (70,529) | (59,137) | (223,383) | (265,964) | ||||||||||||
Services and others | (1,504) | (1,574) | (5,107) | (3,532) | ||||||||||||
Total cost of revenues | (72,033) | (60,171) | (228,490) | (269,496) | ||||||||||||
Gross profit | 84,385 | 75,385 | 275,078 | 359,932 | ||||||||||||
Operating expenses | ||||||||||||||||
Fulfillment | (8,862) | (8,050) | (30,617) | (34,916) | ||||||||||||
Selling and marketing | (72,270) | (65,785) | (222,629) | (302,694) | ||||||||||||
General and administrative | (8,250) | (6,758) | (36,295) | (34,078) | ||||||||||||
Other operating income | 92 | 353 | 223 | 1,361 | ||||||||||||
Total operating expenses | (89,290) | (80,240) | (289,318) | (370,327) | ||||||||||||
Loss from operations | (4,905) | (4,855) | (14,240) | (10,395) | ||||||||||||
Interest income | 20 | 116 | 57 | 350 | ||||||||||||
Interest expense | (1) | (1) | (5) | (4) | ||||||||||||
Other (expense) / income, net | (8) | 466 | 982 | 499 | ||||||||||||
Impairment loss on investment | (56,083) | - | (56,083) | - | ||||||||||||
Total other (expense) / income | (56,072) | 581 | (55,049) | 845 | ||||||||||||
Loss before income taxes | (60,977) | (4,274) | (69,289) | (9,550) | ||||||||||||
Income tax benefit / (expense) | 12,716 | 8 | 12,707 | (40) | ||||||||||||
Net loss | (48,261) | (4,266) | (56,582) | (9,590) | ||||||||||||
Net loss attributable to LightInTheBox Holding | (48,261) | (4,266) | (56,582) | (9,590) | ||||||||||||
Weighted average numbers of shares used in calculating | ||||||||||||||||
-Basic | 226,500,131 | 224,236,751 | 226,248,599 | 225,940,602 | ||||||||||||
-Diluted | 226,500,131 | 224,236,751 | 226,248,599 | 225,940,602 | ||||||||||||
Net loss per ordinary share | ||||||||||||||||
-Basic | (0.21) | (0.02) | (0.25) | (0.04) | ||||||||||||
-Diluted | (0.21) | (0.02) | (0.25) | (0.04) | ||||||||||||
Net loss per ADS ( 2 ordinary shares equal to 1 ADS ) | ||||||||||||||||
-Basic | (0.43) | (0.04) | (0.50) | (0.08) | ||||||||||||
-Diluted | (0.43) | (0.04) | (0.50) | (0.08) |
LightInTheBox Holding Co., Ltd. | ||||||||||||||||
Unaudited and unreviewed Reconciliations of GAAP and Non-GAAP Results | ||||||||||||||||
( | ||||||||||||||||
Three Months Ended | Twelve Months Ended | |||||||||||||||
Dec 31, | Dec 31, | |||||||||||||||
2022 | 2023 | 2022 | 2023 | |||||||||||||
Net loss | (48,261) | (4,266) | (56,582) | (9,590) | ||||||||||||
Less: Interest income | 20 | 116 | 57 | 350 | ||||||||||||
Interest expense | (1) | (1) | (5) | (4) | ||||||||||||
Income tax benefit / (expense) | 12,716 | 8 | 12,707 | (40) | ||||||||||||
Depreciation and amortization | (844) | (756) | (3,371) | (3,177) | ||||||||||||
EBITDA | (60,152) | (3,633) | (65,970) | (6,719) | ||||||||||||
Less: Impairment loss on investment | (56,083) | - | (56,083) | - | ||||||||||||
Less: Share-based compensation | (265) | (326) | (340) | (415) | ||||||||||||
Adjusted EBITDA* | (3,804) | (3,307) | (9,547) | (6,304) | ||||||||||||
* Adjusted EBITDA represents net loss before impairment loss on investment, share-based compensation expense, |
SOURCE LightInTheBox Holding Co., Ltd.
FAQ
What was LightInTheBox's revenue in 2023?
What was the net loss for LightInTheBox in Q4 2023?
What was the reason behind the NYSE notification received by LightInTheBox?
How did LightInTheBox's cash and cash equivalents change from 2022 to 2023?
What was the percentage change in total revenues for LightInTheBox in Q4 2023 compared to Q4 2022?