LightInTheBox Reports Second Quarter 2022 Financial Results
LightInTheBox (LITB) reported its unaudited financial results for Q2 2022, showing a 8.3% year-over-year revenue increase to $132.4 million. Apparel sales surged 44.4%, contributing 82.1% of total revenues. However, the company experienced a net loss of $2.4 million, compared to a net income of $9.5 million in Q2 2021. Operating expenses rose to $75.6 million, leading to a loss from operations of $2.5 million. Despite challenges from macroeconomic factors, management highlighted improved operational efficiency and confidence in maintaining growth momentum for the second half of 2022.
- Q2 revenue increased 8.3% to $132.4 million.
- Apparel sales grew 44.4%, accounting for 82.1% of total revenues.
- Gross margin improved to 55.3%, up from 46.8% year-over-year.
- Net loss of $2.4 million in Q2 2022 compared to net income of $9.5 million in Q2 2021.
- Total operating expenses increased to $75.6 million, up from $60.6 million in Q2 2021.
- Adjusted EBITDA was negative $1.5 million in Q2 2022, down from positive $14.5 million in Q2 2021.
SHANGHAI, Sept. 6, 2022 /PRNewswire/ -- LightInTheBox Holding Co., Ltd. (NYSE: LITB) ("LightInTheBox" or the "Company"), a cross-border e-commerce platform that delivers products directly to consumers around the world, today announced its unaudited financial results for the second quarter ended June 30, 2022.
Second Quarter and First Half 2022 Financial Highlights
Three Months Ended | Year-over- | Six Months Ended | Year-over- | |||||||||||||||||||||
June 30, | June 30, | Year % | June 30, | June 30, | Year % | |||||||||||||||||||
In millions, except percentages | 2021 | 2022 | Change | 2021 | 2022 | Change | ||||||||||||||||||
Total revenues | $ | 122.2 | $ | 132.4 | 8.3 | % | $ | 234.2 | $ | 226.1 | (3.5) | % | ||||||||||||
- Apparel sales | $ | 75.3 | $ | 108.7 | 44.4 | % | $ | 134.4 | $ | 175.9 | 30.9 | % | ||||||||||||
Apparel sales / Total revenues | 61.6 | % | 82.1 | % | 57.4 | % | 77.8 | % | ||||||||||||||||
Gross margin | 46.8 | % | 55.3 | % | 46.7 | % | 53.4 | % | ||||||||||||||||
Net income / (loss) | $ | 9.5 | $ | (2.4) | $ | 10.9 | $ | (7.9) | ||||||||||||||||
Adjusted EBITDA | $ | 14.5 | $ | (1.5) | $ | 16.8 | $ | (6.1) | ||||||||||||||||
As of December 31, | As of June 30, | |||||||||||||||||||||||
In millions | 2021 | 2022 | ||||||||||||||||||||||
Cash, cash equivalents and restricted cash | $ | 59.6 | $ | 65.7 | ||||||||||||||||||||
Mr. Jian He, Chief Executive Officer of LightInTheBox, commented, "We delivered a solid financial performance in the second quarter of 2022, despite challenges caused by macro headwinds including the COVID resurgence in China, soft consumer sentiment globally and fluctuations in foreign exchange rates. Our top line increased
Second Quarter 2022 Financial Results
Total revenues increased by
Total cost of revenues was
Gross profit in the second quarter of 2022 was
Total operating expenses in the second quarter of 2022 were
- Fulfillment expenses in the second quarter of 2022 were
$7.8 million , compared with$7.6 million in the same quarter of 2021. As a percentage of total revenues, fulfillment expenses were5.9% in the second quarter of 2022, compared with6.2% in the same quarter of 2021 and7.3% in the first quarter of 2022. - Selling and marketing expenses in the second quarter of 2022 were
$58.2 million , compared with$43.5 million in the same quarter of 2021. As a percentage of total revenues, selling and marketing expenses were44.0% for the second quarter of 2022, compared with35.6% in the same quarter of 2021 and41.6% in the first quarter of 2022. - G&A expenses in the second quarter of 2022 were
$9.7 million , compared with$9.5 million in the same quarter of 2021. As a percentage of total revenues, G&A expenses were7.3% for the second quarter of 2022, compared with7.8% in the same quarter of 2021 and8.6% in the first quarter of 2022. Included in G&A expenses, R&D expenses in the second quarter of 2022 were$4.7 million , compared with$5.1 million in the same quarter of 2021 and$4.6 million in the first quarter of 2022.
Loss from operations was
Other income, net in the second quarter of 2022 was
Net loss was
Net loss per American Depository Share ("ADS") was
In the second quarter of 2022, the Company's basic weighted average number of ADSs used in computing the net income per ADS was 113,070,465.
Adjusted EBITDA, which represents (loss) / income from operations before share-based compensation expense, interest income, interest expense, income tax expense and depreciation and amortization expenses, was negative
As of June 30, 2022, the Company had cash and cash equivalents and restricted cash of
First Half 2022 Financial Results
Total revenues decreased
Total cost of revenues was
Gross profit in the first half of 2022 was
Total operating expenses in the first half of 2022 were
- Fulfillment expenses in the first half of 2022 were
$14.6 million , compared with$14.9 million in the same half of 2021. As a percentage of total revenues, fulfillment expenses were6.5% in the first half of 2022, compared with6.3% in the same half of 2021. - Selling and marketing expenses in the first half of 2022 were
$97.3 million , compared with$79.1 million in the same half of 2021. As a percentage of total revenues, selling and marketing expenses were43.0% for the first half of 2022, compared with33.8% in the same half of 2021. - G&A expenses in the first half of 2022 were
$17.7 million , compared with$17.9 million in the same half of 2021. As a percentage of total revenues, G&A expenses were7.8% for the first half of 2022, compared with7.6% in the same half of 2021. Included in G&A expenses, R&D expenses in the first half of 2022 were$9.3 million , compared with$10.0 million in the same half of 2021.
Loss from operations was
Other income, net was
Net loss was
Net loss per American Depository Share ("ADS") was
In the first half of 2022, the Company's basic weighted average number of ADSs used in computing the net income per ADS was 113,062,096.
Adjusted EBITDA, which represents (loss) / income from operations before share-based compensation expense, interest income, interest expense, income tax expense and depreciation and amortization expenses, was negative
Non-GAAP Financial Measures
To supplement our consolidated financial statements, which are prepared and presented in accordance with U.S. GAAP, we use the following non-GAAP financial measures to help evaluate our operating performance:
"Adjusted EBITDA" represents income from operations before share-based compensation expense, interest income, interest expense, income tax expense and depreciation and amortization expenses. Although other companies may calculate adjusted EBITDA differently or not present it at all, we believe that the adjusted EBITDA helps to identify underlying trends in our operating results, and facilitate investors' understanding of the past performance and future prospect.
Conference Call
The Company will hold a conference call to discuss the results at 8:00 a.m. Eastern Time on September 6, 2022 (8:00 p.m. Beijing Time on the same day).
Preregistration Information
Participants can register for the conference call by navigating to https://s1.c-conf.com/diamondpass/10024891-4mlfy6f.html. Once preregistration has been completed, 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 joined to the conference instantly.
A telephone replay will be available two hours after the conclusion of the conference call through September 14, 2022. The dial-in details are:
US/Canada: | +1-855-883-1031 |
Hong Kong: | 800-930-639 |
Passcode: | 10024891 |
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 a cross-border e-commerce platform that delivers products directly to consumers around the world. The Company offers customers a convenient way to shop for a wide selection of products at attractive prices through its www.lightinthebox.com, www.miniinthebox.com, www.ezbuy.sg and other websites and mobile applications, which are available in 25 major languages and cover more than 140 countries.
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: lbergkamp@ChristensenIR.com
Forward-Looking Statements
This announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates," "potential," "continue," "ongoing," "targets" and similar statements. Among other things, statements that are not historical facts, including statements about LightInTheBox's beliefs and expectations, the business outlook and quotations from management in this announcement, as well as LightInTheBox's strategic and operational plans, are or contain forward-looking statements.
LightInTheBox may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission (the "SEC"), in press releases and other written materials and in oral statements made by its officers, directors or employees to fourth parties. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward- looking statement, including but not limited to the following: LightInTheBox's goals and strategies; LightInTheBox's future business development, results of operations and financial condition; the expected growth of the global online retail market; LightInTheBox's ability to attract customers and further enhance customer experience and product offerings; LightInTheBox's ability to strengthen its supply chain efficiency and optimize its logistics network; LightInTheBox's expectations regarding demand for and market acceptance of its products; competition; fluctuations in general economic and business conditions and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks is included in LightInTheBox's filings with the SEC. All information provided in this press release and in the attachments is as of the date of this press release, and LightInTheBox does not undertake any obligation to update any forward-looking statement, except as required under applicable law.
LightInTheBox Holding Co., Ltd. | ||||||||
Unaudited Condensed Consolidated Balance Sheets | ||||||||
(U.S. dollars in thousands, or otherwise noted) | ||||||||
As of December 31, | As of June 30, | |||||||
2021 | 2022 | |||||||
ASSETS | ||||||||
Current Assets | ||||||||
Cash and cash equivalents | 55,942 | 62,118 | ||||||
Restricted cash | 3,660 | 3,603 | ||||||
Accounts receivable, net of allowance for credit losses | 1,625 | 316 | ||||||
Amounts due from related parties | 2,730 | - | ||||||
Inventories | 11,997 | 11,055 | ||||||
Prepaid expenses and other current assets | 7,947 | 7,878 | ||||||
Total current assets | 83,901 | 84,970 | ||||||
Property and equipment, net | 3,312 | 2,774 | ||||||
Intangible assets, net | 8,232 | 6,844 | ||||||
Goodwill | 30,440 | 28,994 | ||||||
Operating lease right-of-use assets | 11,584 | 11,852 | ||||||
Long-term rental deposits | 1,218 | 1,073 | ||||||
Long-term investments | 56,383 | 57,232 | ||||||
Other non-current assets | 296 | 454 | ||||||
TOTAL ASSETS | 195,366 | 194,193 | ||||||
LIABILITIES AND EQUITY | ||||||||
Current Liabilities | ||||||||
Accounts payable | 23,535 | 15,636 | ||||||
Advance from customers | 24,789 | 30,445 | ||||||
Operating lease liabilities | 3,784 | 4,503 | ||||||
Accrued expenses and other current liabilities | 57,819 | 67,808 | ||||||
Total current liabilities | 109,927 | 118,392 | ||||||
Operating lease liabilities | 7,864 | 8,142 | ||||||
Long-term payable | 78 | 55 | ||||||
Deferred tax liabilities | 517 | 522 | ||||||
Unrecognized tax benefits | 13,101 | 12,466 | ||||||
TOTAL LIABILITIES | 131,487 | 139,577 | ||||||
EQUITY | ||||||||
Ordinary shares | 17 | 17 | ||||||
Additional paid-in capital | 282,382 | 282,448 | ||||||
Treasury shares | (29,309) | (29,309) | ||||||
Accumulated other comprehensive income | 2,737 | 1,316 | ||||||
Accumulated deficit | (192,072) | (199,855) | ||||||
Non-controlling interests | 124 | (1) | ||||||
TOTAL EQUITY | 63,879 | 54,616 | ||||||
TOTAL LIABILITIES AND EQUITY | 195,366 | 194,193 | ||||||
LightInTheBox Holding Co., Ltd. | ||||||||||||||||
Unaudited Condensed Consolidated Statements of Operations | ||||||||||||||||
(U.S. dollars in thousands, except per share data, or otherwise noted) | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | June 30, | June 30, | |||||||||||||
2021 | 2022 | 2021 | 2022 | |||||||||||||
Revenues | ||||||||||||||||
Product sales | 119,337 | 129,828 | 228,759 | 221,171 | ||||||||||||
Services and others | 2,864 | 2,527 | 5,489 | 4,952 | ||||||||||||
Total revenues | 122,201 | 132,355 | 234,248 | 226,123 | ||||||||||||
Cost of revenues | ||||||||||||||||
Product sales | (64,001) | (58,214) | (123,033) | (103,284) | ||||||||||||
Services and others | (1,051) | (983) | (1,808) | (2,167) | ||||||||||||
Total Cost of revenues | (65,052) | (59,197) | (124,841) | (105,451) | ||||||||||||
Gross profit | 57,149 | 73,158 | 109,407 | 120,672 | ||||||||||||
Operating expenses | ||||||||||||||||
Fulfillment | (7,619) | (7,774) | (14,865) | (14,638) | ||||||||||||
Selling and marketing | (43,531) | (58,225) | (79,122) | (97,257) | ||||||||||||
General and administrative | (9,494) | (9,661) | (17,910) | (17,727) | ||||||||||||
Other operating income | 45 | 26 | 408 | 92 | ||||||||||||
Total operating expenses | (60,599) | (75,634) | (111,489) | (129,530) | ||||||||||||
Loss from operations | (3,450) | (2,476) | (2,082) | (8,858) | ||||||||||||
Interest income | 15 | 7 | 20 | 17 | ||||||||||||
Interest expense | (4) | (1) | (8) | (3) | ||||||||||||
Other income, net* | 17,178 | 83 | 17,209 | 945 | ||||||||||||
Total other income | 17,189 | 89 | 17,221 | 959 | ||||||||||||
Income / (Loss) before income taxes | 13,739 | (2,387) | 15,139 | (7,899) | ||||||||||||
Income tax expense | (4,282) | (9) | (4,289) | (9) | ||||||||||||
Net income / (loss) | 9,457 | (2,396) | 10,850 | (7,908) | ||||||||||||
Less: Net income attributable to non-controlling interests | 76 | - | 161 | - | ||||||||||||
Net income / (loss) attributable to LightInTheBox Holding | 9,381 | (2,396) | 10,689 | (7,908) | ||||||||||||
Weighted average numbers of shares used in calculating | ||||||||||||||||
—Basic | 224,198,651 | 226,140,929 | 224,153,140 | 226,124,192 | ||||||||||||
—Diluted | 226,744,109 | 226,140,929 | 226,805,062 | 226,124,192 | ||||||||||||
Net income / (loss) per ordinary share | ||||||||||||||||
—Basic | 0.04 | (0.01) | 0.05 | (0.03) | ||||||||||||
—Diluted | 0.04 | (0.01) | 0.05 | (0.03) | ||||||||||||
Net income / (loss) per ADS (2 ordinary shares equal to | ||||||||||||||||
—Basic | 0.08 | (0.02) | 0.10 | (0.07) | ||||||||||||
—Diluted | 0.08 | (0.02) | 0.09 | (0.07) | ||||||||||||
*Other income, net mainly includes change in fair value on our equity investment. | ||||||||||||||||
LightInTheBox Holding Co., Ltd. | ||||||||||||||||
Unaudited Reconciliations of GAAP and Non-GAAP Results | ||||||||||||||||
(U.S. dollars in thousands, or otherwise noted) | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | June 30, | June 30, | |||||||||||||
2021 | 2022 | 2021 | 2022 | |||||||||||||
Net income / (loss) | 9,457 | (2,396) | 10,850 | (7,908) | ||||||||||||
Less: Interest income | 15 | 7 | 20 | 17 | ||||||||||||
Interest expense | (4) | (1) | (8) | (3) | ||||||||||||
Income tax expense | (4,282) | (9) | (4,289) | (9) | ||||||||||||
Depreciation and amortization | (752) | (861) | (1,492) | (1,719) | ||||||||||||
EBITDA | 14,480 | (1,532) | 16,619 | (6,194) | ||||||||||||
Less: Share-based compensation | (58) | (30) | (198) | (66) | ||||||||||||
Adjusted EBITDA* | 14,538 | (1,502) | 16,817 | (6,128) | ||||||||||||
* Adjusted EBITDA represents income / (loss) from operations before share-based compensation expense, interest income, | ||||||||||||||||
SOURCE LightInTheBox Holding Co., Ltd.
FAQ
What were LightInTheBox's Q2 2022 revenues (LITB)?
Did LightInTheBox report a profit or loss in Q2 2022?
What percentage of revenues did apparel sales represent in Q2 2022 for LITB?
How has LightInTheBox's gross margin changed in Q2 2022?
What is the future outlook for LightInTheBox after Q2 2022 results?
