LightInTheBox Reports Second Quarter 2023 Financial Results
- Total revenues increased by 44.9% YoY
- Apparel sales grew by 50.1%
- Gross margin improved to 57.5%
- Cash balance at $94.6 million
- Net loss of $1.5 million
Second Quarter and First Half 2023 Financial Highlights
Three Months Ended | Year-over- | Six Months Ended | Year-over- | |||||||||||||||||||||
In millions, | June 30, | June 30, | Year % | June 30, | June 30, | Year % | ||||||||||||||||||
except percentages | 2022 | 2023 | Change | 2022 | 2023 | Change | ||||||||||||||||||
Total revenues | $ | 132.4 | $ | 191.8 | 44.9 | % | $ | 226.1 | $ | 339.5 | 50.2 | % | ||||||||||||
- Apparel sales | $ | 108.7 | $ | 163.2 | 50.1 | % | $ | 175.9 | $ | 282.5 | 60.5 | % | ||||||||||||
Apparel sales/total | 82.1 | % | 85.1 | % | 3.0 | % | 77.8 | % | 83.2 | % | 5.4 | % | ||||||||||||
Gross margin | 55.3 | % | 57.5 | % | 2.2 | % | 53.4 | % | 56.7 | % | 3.3 | % | ||||||||||||
Net loss | $ | (2.4) | $ | (1.5) | $ | (7.9) | $ | (5.4) | ||||||||||||||||
Adjusted EBITDA | $ | (1.5) | $ | (0.7) | $ | (6.1) | $ | (3.8) |
As of June 30, | As of June 30, | |||||||
In millions | 2022 | 2023 | ||||||
Cash, cash equivalents and restricted cash | $ | 65.7 | $ | 94.6 | ||||
Mr. Jian He, Chairman and CEO of LightInTheBox, commented, "We're pleased to deliver a strong operational and financial performance in the second quarter of 2023. Amid a complex macro environment, we achieved the highest quarterly revenue in our history, primarily driven by apparel sales growth of
"These solid results once again demonstrate our effective business strategy, as well as our core competitive advantages across our value-for-money offerings, quality customer cohorts, and innovative technologies. As we move into the third quarter 2023, we are seeing that macroeconomic turbulence, together with normal seasonality in the apparel sector, is impacting on our top-line performance. Nevertheless, we will continue to execute our proven business strategy and refine our operations to navigate the evolving market dynamics as we strive to deliver sustainable value to all of our stakeholders in the long run," Mr. He concluded.
Second Quarter 2023 Financial Results
Total revenues increased by
Total cost of revenues was
Gross profit in the second quarter of 2023 was
Total operating expenses in the second quarter of 2023 were
- Fulfillment expenses in the second quarter of 2023 were
, compared with$9.9 million in the same quarter of 2022. As a percentage of total revenues, fulfillment expenses were$7.8 million 5.2% in the second quarter of 2023, compared with5.9% in the same quarter of 2022 and5.8% in the first quarter of 2023. - Selling and marketing expenses in the second quarter of 2023 were
, compared with$94.0 million in the same quarter of 2022. As a percentage of total revenues, selling and marketing expenses were$58.2 million 49.0% in the second quarter of 2023, compared with44.0% in the same quarter of 2022 and46.8% in the first quarter of 2023. - G&A expenses in the second quarter of 2023 were
, compared with$8.2 million in the same quarter of 2022. As a percentage of total revenues, G&A expenses were$9.7 million 4.3% in the second quarter of 2023, compared with7.3% in the same quarter of 2022 and6.1% in the first quarter of 2023. As part of G&A expenses, R&D expenses in the second quarter of 2023 were , compared with$5.1 million in the same quarter of 2022 and$4.7 million in the first quarter of 2023.$5.2 million
Loss from operations was
Net loss was
Net loss per American Depository Share ("ADS") was
In the second quarter of 2023, the Company's basic weighted average number of ADSs used in computing the net loss per ADS was 113,369,462.
Adjusted EBITDA was negative
As of June 30, 2023, the Company had cash and cash equivalents and restricted cash of
First Half 2023 Financial Results
Total revenues increased by
Total cost of revenues was
Gross profit in the first half of 2023 was
Total operating expenses in the first half of 2023 were
- Fulfillment expenses in the first half of 2023 were
, compared with$18.5 million in the same period of 2022. As a percentage of total revenues, fulfillment expenses were$14.6 million 5.5% in the first half of 2023, compared with6.5% in the same period of 2022. - Selling and marketing expenses in the first half of 2023 were
, compared with$163.2 million in the same period of 2022. As a percentage of total revenues, selling and marketing expenses were$97.3 million 48.0% for the first half of 2023, compared with43.0% in the same period of 2022. - G&A expenses in the first half of 2023 were
, compared with$17.2 million in the same period of 2022. As a percentage of total revenues, G&A expenses were$17.7 million 5.1% for the first half of 2023, compared with7.8% in the same period of 2022. Included in G&A expenses, R&D expenses in the first half of 2023 were , compared with$10.3 million in the same period of 2022.$9.3 million
Loss from operations was
Net loss was
Net loss per American Depository Share ("ADS") was
In the first half of 2023, the Company's basic weighted average number of ADSs used in computing the net loss per ADS was 113,349,914.
Adjusted EBITDA was negative
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 third 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 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 Reconciliations of GAAP and Non-GAAP Result" set forth at the end of this press release.
Conference Call
The Company's management will hold an earnings conference call at 8:00 a.m. Eastern Time on September 15, 2023 (8:00 p.m.
Preregistration Information
Participants can register for the conference call by going to https://s1.c-conf.com/diamondpass/10033153-fue64r.html. Upon registration, 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 connected to the conference instantly.
A telephone replay will be available two hours after the conclusion of the conference call through September 22, 2023. The dial-in details are:
US/ | +1-855-883-1031 | |
800-101-3223 | ||
800-930-639 | ||
Replay PIN: | 10033153 |
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 apparels that bring fresh joy to customers. LightInTheBox operates its business through www.lightinthebox.com, www.miniinthebox.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 Condensed Consolidated Balance Sheets | ||||||||
( | ||||||||
As of December 31, | As of Jun 30, | |||||||
2022 | 2023 | |||||||
ASSETS | ||||||||
Current Assets | ||||||||
Cash and cash equivalents | 88,575 | 88,157 | ||||||
Restricted cash | 5,993 | 6,451 | ||||||
Accounts receivable, net of allowance for credit losses | 695 | 1,424 | ||||||
Inventories | 14,260 | 9,427 | ||||||
Prepaid expenses and other current assets | 6,452 | 18,120 | ||||||
Total current assets | 115,975 | 123,579 | ||||||
Property and equipment, net | 2,946 | 2,794 | ||||||
Intangible assets, net | 5,630 | 4,404 | ||||||
Goodwill | 28,177 | 26,835 | ||||||
Operating lease right-of-use assets | 10,874 | 8,728 | ||||||
Long-term rental deposits | 1,211 | 1,259 | ||||||
TOTAL ASSETS | 164,813 | 167,599 | ||||||
LIABILITIES AND EQUITY / (DEFICIT) | ||||||||
Current Liabilities | ||||||||
Accounts payable | 26,518 | 38,981 | ||||||
Advance from customers | 32,241 | 27,559 | ||||||
Operating lease liabilities | 4,993 | 5,184 | ||||||
Accrued expenses and other current liabilities | 90,357 | 94,671 | ||||||
Total current liabilities | 154,109 | 166,395 | ||||||
Operating lease liabilities | 6,576 | 4,103 | ||||||
Long-term payable | 34 | 10 | ||||||
Deferred tax liabilities | 111 | 150 | ||||||
Unrecognized tax benefits | 107 | 107 | ||||||
TOTAL LIABILITIES | 160,937 | 170,765 | ||||||
EQUITY / (DEFICIT) | ||||||||
Ordinary shares | 17 | 17 | ||||||
Additional paid-in capital | 282,722 | 282,805 | ||||||
Treasury shares | (28,615) | (28,105) | ||||||
Accumulated other comprehensive loss | (1,024) | (2,754) | ||||||
Accumulated deficit | (249,224) | (255,129) | ||||||
TOTAL EQUITY / (DEFICIT) | 3,876 | (3,166) | ||||||
TOTAL LIABILITIES AND EQUITY / (DEFICIT) | 164,813 | 167,599 |
LightInTheBox Holding Co., Ltd. | ||||||||||||||||
Unaudited Condensed Consolidated Statements of Operations | ||||||||||||||||
( | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | June 30, | June 30, | |||||||||||||
2022 | 2023 | 2022 | 2023 | |||||||||||||
Revenues | ||||||||||||||||
Product sales | 129,828 | 189,730 | 221,171 | 334,331 | ||||||||||||
Services and others | 2,527 | 2,037 | 4,952 | 5,217 | ||||||||||||
Total revenues | 132,355 | 191,767 | 226,123 | 339,548 | ||||||||||||
Cost of revenues | ||||||||||||||||
Product sales | (58,214) | (81,142) | (103,284) | (145,318) | ||||||||||||
Services and others | (983) | (435) | (2,167) | (1,538) | ||||||||||||
Total Cost of revenues | (59,197) | (81,577) | (105,451) | (146,856) | ||||||||||||
Gross profit | 73,158 | 110,190 | 120,672 | 192,692 | ||||||||||||
Operating expenses | ||||||||||||||||
Fulfillment | (7,774) | (9,906) | (14,638) | (18,542) | ||||||||||||
Selling and marketing | (58,225) | (94,038) | (97,257) | (163,150) | ||||||||||||
General and administrative | (9,661) | (8,176) | (17,727) | (17,233) | ||||||||||||
Other operating income | 26 | 332 | 92 | 677 | ||||||||||||
Total operating expenses | (75,634) | (111,788) | (129,530) | (198,248) | ||||||||||||
Loss from operations | (2,476) | (1,598) | (8,858) | (5,556) | ||||||||||||
Interest income | 7 | 143 | 17 | 173 | ||||||||||||
Interest expense | (1) | (1) | (3) | (2) | ||||||||||||
Other income, net | 83 | (1) | 945 | 20 | ||||||||||||
Total other income | 89 | 141 | 959 | 191 | ||||||||||||
Loss before income taxes | (2,387) | (1,457) | (7,899) | (5,365) | ||||||||||||
Income tax expense | (9) | - | (9) | (48) | ||||||||||||
Net loss | (2,396) | (1,457) | (7,908) | (5,413) | ||||||||||||
Net loss attributable to LightInTheBox Holding | (2,396) | (1,457) | (7,908) | (5,413) | ||||||||||||
Weighted average numbers of shares used in | ||||||||||||||||
—Basic | 226,140,929 | 226,738,924 | 226,124,192 | 226,699,828 | ||||||||||||
—Diluted | 226,140,929 | 226,738,924 | 226,124,192 | 226,699,828 | ||||||||||||
Net loss per ordinary share | ||||||||||||||||
—Basic | (0.01) | (0.01) | (0.03) | (0.02) | ||||||||||||
—Diluted | (0.01) | (0.01) | (0.03) | (0.02) | ||||||||||||
Net loss per ADS ( 2 ordinary shares equal to 1 ADS ) | ||||||||||||||||
—Basic | (0.02) | (0.01) | (0.07) | (0.05) | ||||||||||||
—Diluted | (0.02) | (0.01) | (0.07) | (0.05) |
LightInTheBox Holding Co., Ltd. | ||||||||||||||||
Unaudited Reconciliations of GAAP and Non-GAAP Results | ||||||||||||||||
( | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | June 30, | June 30, | |||||||||||||
2022 | 2023 | 2022 | 2023 | |||||||||||||
Net loss | (2,396) | (1,457) | (7,908) | (5,413) | ||||||||||||
Less: Interest income | 7 | 143 | 17 | 173 | ||||||||||||
Interest expense | (1) | (1) | (3) | (2) | ||||||||||||
Income tax expense | (9) | - | (9) | (48) | ||||||||||||
Depreciation and amortization | (861) | (826) | (1,719) | (1,655) | ||||||||||||
EBITDA | (1,532) | (773) | (6,194) | (3,881) | ||||||||||||
Less: Share-based compensation | (30) | (78) | (66) | (83) | ||||||||||||
Adjusted EBITDA* | (1,502) | (695) | (6,128) | (3,798) | ||||||||||||
* Adjusted EBITDA represents loss from operations before impairment loss on investment, share-based |
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SOURCE LightInTheBox Holding Co., Ltd.