LightInTheBox Reports Fourth Quarter and Full Year 2022 Financial Results
LightInTheBox (NYSE: LITB) reported its fourth quarter and full year 2022 financial results, showing a 38.2% increase in revenues to $156.4 million, compared to Q4 2021. For the full year, revenues rose 12.9% to $503.6 million. Apparel sales surged 59.2% in Q4, accounting for 79.3% of total revenues, while gross margin improved from 47.2% to 53.9%. However, the company faced a net loss of $48.3 million in Q4 due to a $56 million impairment charge on an equity investment. Looking ahead, LITB anticipates Q1 2023 net revenues between $135 million and $145 million, indicating a year-over-year increase of 44% to 54%.
- Revenues increased by 38.2% to $156.4 million in Q4 2022.
- Full year revenues rose 12.9% to $503.6 million.
- Apparel sales grew 59.2% in Q4, accounting for 79.3% of total revenues.
- Gross margin improved to 53.9% in Q4 2022, up from 47.2% a year earlier.
- Cash and equivalents increased to $94.6 million as of December 31, 2022.
- Net loss of $48.3 million in Q4 2022, compared to net income of $8.7 million in Q4 2021.
- Impairment charge of $56 million on equity investment due to deteriorating operations.
- Adjusted EBITDA was negative $3.8 million in Q4 2022, down from positive $16.2 million in Q4 2021.
Fourth Quarter and Full Year 2022 Financial Highlights
Three Months Ended | Year- | Twelve Months Ended | Year- | |||||||||||||||||||||
December | December | Year % | December | December | Year % | |||||||||||||||||||
In millions, except | 2021 | 2022 | Change | 2021 | 2022 | Change | ||||||||||||||||||
Total revenues | $ | 113.2 | $ | 156.4 | 38.2 | % | $ | 446.1 | $ | 503.6 | 12.9 | % | ||||||||||||
- Apparel sales | $ | 77.9 | $ | 123.9 | 59.2 | % | $ | 274.2 | $ | 399.5 | 45.7 | % | ||||||||||||
Apparel sales/total | 68.8 | % | 79.3 | % | 61.5 | % | 79.3 | % | ||||||||||||||||
Gross margin | 47.2 | % | 53.9 | % | 46.3 | % | 54.6 | % | ||||||||||||||||
Net income/ (loss) | $ | 8.7 | $ | (48.3) | $ | 13.5 | $ | (56.6) | ||||||||||||||||
Adjusted EBITDA | $ | 16.2 | $ | (3.8) | $ | 27.9 | $ | (9.5) | ||||||||||||||||
As of | As of December 31, | |||||||||||||||||||||||
In millions | 2021 | 2022 | ||||||||||||||||||||||
Cash, cash equivalents and restricted cash | $ | 59.6 | $ | 94.6 |
Mr. Jian He, Chief Executive Officer of
"Despite multiple headwinds, including global inflation, economic uncertainty that made many consumers more cautious in their spending and pandemic-related supply disruptions, total revenues increased by
Fourth Quarter 2022 Financial Results
Total revenues increased by
Total cost of revenues was
Gross profit in the fourth quarter of 2022 was
Total operating expenses in the fourth quarter of 2022 were
- Fulfillment expenses in the fourth quarter of 2022 were
, compared with$8.9 million in the same quarter of 2021. As a percentage of total revenues, fulfillment expenses were$7.5 million 5.7% in the fourth quarter of 2022, compared with6.7% in the same quarter of 2021 and5.9% in the third quarter of 2022. - Selling and marketing expenses in the fourth quarter of 2022 were
, compared with$72.3 million in the same quarter of 2021. As a percentage of total revenues, selling and marketing expenses were$41.1 million 46.2% for the fourth quarter of 2022, compared with36.3% in the same quarter of 2021 and43.9% in the third quarter of 2022. - G&A expenses in the fourth quarter of 2022 were
, compared with$8.3 million in the same quarter of 2021. As a percentage of total revenues, G&A expenses were$12.5 million 5.3% for the fourth quarter of 2022, compared with11.1% in the same quarter of 2021 and8.5% in the third quarter of 2022. Included in G&A expenses, R&D expenses in the fourth quarter of 2022 were , compared with$5.3 million in the same quarter of 2021 and$4.9 million in the third quarter of 2022.$4.8 million
Loss from operations was
Other expense, net was
Impairment loss on investment in the fourth quarter of 2022 was
Income tax expense / (benefit) in the fourth quarter of 2022 was a benefit of
Net loss was
Net loss per American Depository Share ("ADS") was
In the fourth quarter of 2022, the Company's basic weighted average number of ADSs used in computing the net income per ADS was 113,250,066.
Adjusted EBITDA was negative
As of
Full Year 2022 Financial Results
Total revenues increased by
Total cost of revenues was
Gross profit for the full year of 2022 was
Total operating expenses for the full year of 2022 were
- Fulfillment expenses for the full year of 2022 were
, compared with$30.6 million in 2021. As a percentage of total revenues, fulfillment expenses were$29.6 million 6.1% for the full year 2022, compared with6.6% in 2021. - Selling and marketing expenses for the full year of 2022 were
, compared with$222.6 million in 2021. As a percentage of total revenues, selling and marketing expenses were$154.2 million 44.2% for the full year 2022, compared with34.6% in 2021. - G&A expenses for the full year of 2022 were
, compared with$36.3 million in 2021. As a percentage of total revenues, G&A expenses were$39.7 million 7.2% for the full year of 2022, compared with8.9% in 2021. Included in G&A expenses, R&D expenses for the full year of 2022 were , compared with$19.4 million in 2022.$20.3 million
Loss from operations was
Other income, net was
Impairment loss on investment for the full year of 2022 was
Income tax expense / (benefit) in the full year of 2022 was a benefit of
Net loss was
Net loss per American Depository Share ("ADS") was
For the full year of 2022, the Company's basic weighted average number of ADSs used in computing the net loss per ADS was 113,124,300.
Adjusted EBITDA was negative
The financial statements for the full year ended
Business Outlook
For the first quarter of 2023, 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 non-GAAP measure, Adjusted EBITDA, as supplemental measure to review and assess operating performance. The presentation of the 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 the non-GAAP financial measures because they are used by management to evaluate operating performance and formulate business plans. The Company believes that the non-GAAP financial measure help 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 measures are 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.
Conference Call
The Company will hold a conference call to discuss the results at 8:00 a.m. Eastern Time on
Preregistration Information
Participants can register for the conference call by navigating to https://s1.c-conf.com/diamondpass/10029578-8rdicp.html. Once preregistration has been completed, participants will receive dial-in numbers, an event passcode, and a unique registrant ID.
To join the conference, simply dial the number in the calendar invite you receive after preregistering, enter the event passcode followed by your unique registrant ID, and you will be joined to the conference instantly.
A telephone replay will be available two hours after the conclusion of the conference call through
US/ | +1-855-883-1031 | |
800-930-639 | ||
Replay PIN: | 10029578 |
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
For more information, please visit www.lightinthebox.com.
Investor Relations Contact
Christensen
Ms. Xiaoyan Su
Tel: +86 (10) 5900 1548
Email: ir@lightinthebox.com
OR
Christensen
Ms. Linda Bergkamp
Tel: +1-480-614-3004
Email: linda.bergkamp@christensencomms.com
Forward-Looking Statements
This announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of the
Unaudited and unreviewed Condensed Consolidated Balance Sheets | ||||
( | ||||
As of December 31, | As of December 31, | |||
2021 | 2022 | |||
ASSETS | ||||
Current Assets | ||||
Cash and cash equivalents | 55,942 | 88,575 | ||
Restricted cash | 3,660 | 5,993 | ||
Accounts receivable, net of allowance for credit losses | 1,625 | 695 | ||
Amounts due from related parties | 2,730 | - | ||
Inventories | 11,997 | 14,260 | ||
Prepaid expenses and other current assets | 7,947 | 6,452 | ||
Total current assets | 83,901 | 115,975 | ||
Property and equipment, net | 3,312 | 2,946 | ||
Intangible assets, net | 8,232 | 5,630 | ||
30,440 | 28,177 | |||
Operating lease right-of-use assets | 11,584 | 10,874 | ||
Long-term rental deposits | 1,218 | 1,211 | ||
Long-term investments | 56,383 | - | ||
Other non-current assets | 296 | - | ||
TOTAL ASSETS | 195,366 | 164,813 | ||
LIABILITIES AND EQUITY | ||||
Current Liabilities | ||||
Accounts payable | 23,535 | 26,518 | ||
Advance from customers | 24,789 | 32,241 | ||
Operating lease liabilities | 3,784 | 4,993 | ||
Accrued expenses and other current liabilities | 57,819 | 90,357 | ||
Total current liabilities | 109,927 | 154,109 | ||
Operating lease liabilities | 7,864 | 6,576 | ||
Long-term payable | 78 | 34 | ||
Deferred tax liabilities | 517 | 111 | ||
Unrecognized tax benefits | 13,101 | 107 | ||
TOTAL LIABILITIES | 131,487 | 160,937 | ||
EQUITY | ||||
Ordinary shares | 17 | 17 | ||
Additional paid-in capital | 282,382 | 282,722 | ||
(29,309) | (28,615) | |||
Accumulated other comprehensive income / (loss) | 2,737 | (1,024) | ||
Accumulated deficit | (192,072) | (249,224) | ||
Non-controlling interests | 124 | - | ||
TOTAL EQUITY | 63,879 | 3,876 | ||
TOTAL LIABILITIES AND EQUITY | 195,366 | 164,813 |
Unaudited and unreviewed Condensed Consolidated Statements of Operations | ||||||||
( | ||||||||
Three Months Ended | Twelve Months Ended | |||||||
2021 | 2022 | 2021 | 2022 | |||||
Revenues | ||||||||
Product sales | 110,450 | 152,797 | 435,170 | 491,949 | ||||
Services and others | 2,700 | 3,621 | 10,933 | 11,619 | ||||
Total revenues | 113,150 | 156,418 | 446,103 | 503,568 | ||||
Cost of revenues | ||||||||
Product sales | (58,186) | (70,529) | (235,237) | (223,383) | ||||
Services and others | (1,564) | (1,504) | (4,156) | (5,107) | ||||
Total Cost of revenues | (59,750) | (72,033) | (239,393) | (228,490) | ||||
Gross profit | 53,400 | 84,385 | 206,710 | 275,078 | ||||
Operating expenses | ||||||||
Fulfillment | (7,527) | (8,862) | (29,588) | (30,617) | ||||
Selling and marketing | (41,063) | (72,270) | (154,176) | (222,629) | ||||
General and administrative | (12,513) | (8,250) | (39,733) | (36,295) | ||||
Other operating income | 230 | 92 | 675 | 223 | ||||
Total operating expenses | (60,873) | (89,290) | (222,822) | (289,318) | ||||
Loss from operations | (7,473) | (4,905) | (16,112) | (14,240) | ||||
Interest income | 12 | 20 | 59 | 57 | ||||
Interest expense | (2) | (1) | (13) | (5) | ||||
Other income / (expense), net* | 21,745 | (8) | 39,322 | 982 | ||||
Impairment loss on investment | - | (56,083) | - | (56,083) | ||||
Total other income / (loss) | 21,755 | (56,072) | 39,368 | (55,049) | ||||
Income / (Loss) before income taxes | 14,282 | (60,977) | 23,256 | (69,289) | ||||
Income tax (expense) / benefit | (5,542) | 12,716 | (9,802) | 12,707 | ||||
Net income / (loss) | 8,740 | (48,261) | 13,454 | (56,582) | ||||
Less: Net income attributable to non-controlling interests | 285 | - | 325 | - | ||||
Net income / (loss) attributable to | 8,455 | (48,261) | 13,129 | (56,582) | ||||
Weighted average numbers of shares used in calculating | ||||||||
—Basic | 224,541,992 | 226,500,131 | 224,306,117 | 226,248,599 | ||||
—Diluted | 226,113,389 | 226,500,131 | 226,568,979 | 226,248,599 | ||||
Net income / (loss) per ordinary share | ||||||||
—Basic | 0.04 | (0.21) | 0.06 | (0.25) | ||||
—Diluted | 0.04 | (0.21) | 0.06 | (0.25) | ||||
Net income / (loss) per ADS (2 ordinary shares equal to 1 | ||||||||
—Basic | 0.08 | (0.43) | 0.12 | (0.50) | ||||
—Diluted | 0.07 | (0.43) | 0.12 | (0.50) | ||||
*Other income / (expense), net mainly includes change in fair value on our equity investment. |
Unaudited and unreviewed Reconciliations of GAAP and Non-GAAP Results | ||||||||
( | ||||||||
Three Months Ended | Twelve Months Ended | |||||||
2021 | 2022 | 2021 | 2022 | |||||
Net income / (loss) | 8,740 | (48,261) | 13,454 | (56,582) | ||||
Less: Interest income | 12 | 20 | 59 | 57 | ||||
Interest expense | (2) | (1) | (13) | (5) | ||||
Income tax (expense) / benefit | (5,542) | 12,716 | (9,802) | 12,707 | ||||
Depreciation and amortization | (817) | (844) | (3,299) | (3,371) | ||||
EBITDA | 15,089 | (60,152) | 26,509 | (65,970) | ||||
Less: Impairment loss on investment | - | (56,083) | - | (56,083) | ||||
Share-based compensation | (1,127) | (265) | (1,382) | (340) | ||||
Adjusted EBITDA* | 16,216 | (3,804) | 27,891 | (9,547) | ||||
* Adjusted EBITDA represents income / (loss) from operations before impairment loss on investment, share-based compensation expense, interest income, interest expense, income tax |
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FAQ
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