LightInTheBox Reports Second Quarter 2024 Financial Results
LightInTheBox Holding Co., (NYSE: LITB) reported its Q2 2024 financial results, showing a return to profitability with a net income of $0.6 million. Despite a 63.8% year-over-year decrease in total revenues to $69.4 million, the company's strategic focus on profitability proved effective. Key highlights include:
- Gross margin improved to 62.4% from 57.5% in Q2 2023
- Operating expenses decreased to $42.7 million from $111.8 million in Q2 2023
- Adjusted EBITDA was an income of $1.2 million, compared to a loss of $0.7 million in Q2 2023
The company aims to continue refining its differentiation strategy, focusing on strengthening localized operations and upgrading products and services to build brand recognition in a competitive market.
LightInTheBox Holding Co., (NYSE: LITB) ha riportato i risultati finanziari per il secondo trimestre del 2024, mostrando un ritorno alla redditività con un utile netto di 0,6 milioni di dollari. Nonostante una diminuzione del 63,8% delle entrate totali rispetto all'anno precedente, scese a 69,4 milioni di dollari, il focus strategico dell'azienda sulla redditività si è rivelato efficace. I punti salienti includono:
- Il margine lordo è migliorato al 62,4% rispetto al 57,5% del secondo trimestre 2023
- Le spese operative sono diminuite a 42,7 milioni di dollari, rispetto ai 111,8 milioni di dollari nel secondo trimestre 2023
- L'EBITDA rettificato è stato di 1,2 milioni di dollari, rispetto a una perdita di 0,7 milioni di dollari nel secondo trimestre 2023
L'azienda mira a continuare a perfezionare la sua strategia di differenziazione, concentrandosi sul rafforzamento delle operazioni locali e sull'aggiornamento di prodotti e servizi per costruire il riconoscimento del marchio in un mercato competitivo.
LightInTheBox Holding Co., (NYSE: LITB) reportó sus resultados financieros del segundo trimestre de 2024, mostrando un regreso a la rentabilidad con un ingreso neto de 0,6 millones de dólares. A pesar de una disminución del 63,8% en los ingresos totales en comparación con el año anterior, que alcanzaron los 69,4 millones de dólares, el enfoque estratégico de la empresa en la rentabilidad resultó efectivo. Los aspectos más destacados incluyen:
- El margen bruto mejoró al 62,4% desde el 57,5% en el segundo trimestre de 2023
- Los gastos operativos disminuyeron a 42,7 millones de dólares desde 111,8 millones de dólares en el segundo trimestre de 2023
- El EBITDA ajustado fue de 1,2 millones de dólares, en comparación con una pérdida de 0,7 millones de dólares en el segundo trimestre de 2023
La empresa busca seguir perfeccionando su estrategia de diferenciación, enfocándose en fortalecer las operaciones localizadas y mejorar productos y servicios para construir el reconocimiento de marca en un mercado competitivo.
LightInTheBox Holding Co., (NYSE: LITB)는 2024년 2분기 재무 결과를 발표하며 60만 달러의 순익을 기록하며 수익성 회복을 보여주었습니다. 전년 대비 총수익이 63.8% 감소해 6940만 달러에 달했지만, 회사의 수익성에 대한 전략적 초점이 효과적이었습니다. 주요 하이라이트는 다음과 같습니다:
- 총 마진이 2023년 2분기의 57.5%에서 62.4%로 개선되었습니다.
- 운영비가 2023년 2분기의 1억 1180만 달러에서 4270만 달러로 감소했습니다.
- 조정 EBITDA는 120만 달러의 수익을 기록했으며, 2023년 2분기에는 70만 달러의 손실이 있었습니다.
회사는 차별화 전략을 계속 다듬고, 지역화를 강화하고, 제품과 서비스를 업그레이드하여 경쟁 시장에서 브랜드 인지도를 구축하는 데 집중할 계획입니다.
LightInTheBox Holding Co., (NYSE: LITB) a annoncé ses résultats financiers pour le deuxième trimestre 2024, montrant un retour à la rentabilité avec un revenu net de 0,6 million de dollars. Malgré une diminution de 63,8 % des revenus totaux par rapport à l'année précédente, s'élevant à 69,4 millions de dollars, l'accent stratégique mis par l'entreprise sur la rentabilité s'est révélé efficace. Les points forts incluent :
- La marge brute s'est améliorée, passant de 57,5 % au 2e trimestre 2023 à 62,4 %
- Les dépenses d'exploitation ont diminué, passant de 111,8 millions de dollars au 2e trimestre 2023 à 42,7 millions de dollars
- L'EBITDA ajusté a atteint 1,2 million de dollars, contre une perte de 0,7 million de dollars au 2e trimestre 2023
L'entreprise vise à continuer de peaufiner sa stratégie de différenciation, en se concentrant sur le renforcement des opérations localisées et la mise à niveau des produits et services pour construire la reconnaissance de la marque dans un marché concurrentiel.
LightInTheBox Holding Co., (NYSE: LITB) hat die Finanzzahlen für das zweite Quartal 2024 vorgelegt und zeigt einen Rückkehr zur Rentabilität mit einem Nettogewinn von 0,6 Millionen Dollar. Trotz eines Rückgangs der Gesamterlöse um 63,8 % im Vergleich zum Vorjahr auf 69,4 Millionen Dollar, erwies sich der strategische Fokus des Unternehmens auf die Rentabilität als effektiv. Wichtige Highlights sind:
- Die Bruttomarge verbesserte sich von 57,5 % im zweiten Quartal 2023 auf 62,4 %
- Die Betriebskosten sanken von 111,8 Millionen Dollar im zweiten Quartal 2023 auf 42,7 Millionen Dollar
- Das bereinigte EBITDA betrug 1,2 Millionen Dollar im Vergleich zu einem Verlust von 0,7 Millionen Dollar im zweiten Quartal 2023
Das Unternehmen hat das Ziel, seine Differenzierungsstrategie weiter zu verfeinern, sich auf die Stärkung lokaler Operationen zu konzentrieren und Produkte sowie Dienstleistungen aufzurüsten, um die Markenbekanntheit in einem wettbewerbsintensiven Markt zu fördern.
- Return to profitability with net income of $0.6 million in Q2 2024
- Improved gross margin to 62.4% from 57.5% in Q2 2023
- Reduced operating expenses by 61.8% year-over-year
- Positive Adjusted EBITDA of $1.2 million in Q2 2024
- Total revenues decreased by 63.8% year-over-year to $69.4 million
- Cash and cash equivalents decreased to $27.9 million from $71.7 million as of December 31, 2023
- Net loss of $3.2 million for the first half of 2024
Insights
LightInTheBox's Q2 2024 results present a mixed picture. While the company returned to profitability with a net income of
The company's strategic pivot to prioritize profitability over growth is evident in these results. Despite the revenue decline, gross margin improved to
However, the dramatic revenue decline raises concerns about the company's market position and competitiveness. The CEO's mention of "intensified competition and high traffic acquisition costs" points to significant challenges in the e-commerce landscape.
The reduction in selling and marketing expenses as a percentage of revenue (from
While the return to profitability is positive, the substantial revenue decline and weakened cash position suggest LightInTheBox faces significant challenges ahead. The company's ability to balance profitability with renewed growth will be important for long-term sustainability.
LightInTheBox's Q2 results reflect the harsh realities of the current e-commerce landscape. The
- Increased competition from both established players and new entrants
- Changing consumer preferences or shopping behaviors
- Potential issues with product offerings or customer experience
The company's focus on "strengthening localized operations" and "propelling progress in certain product lines" indicates an attempt to differentiate in a crowded market. However, the effectiveness of these strategies remains to be seen given the sharp revenue decline.
The reduction in selling and marketing expenses, while improving short-term profitability, could be a double-edged sword. In the highly competitive e-commerce space, reduced marketing spend often leads to decreased visibility and customer acquisition, potentially exacerbating the revenue decline in future quarters.
The mention of high traffic acquisition costs is particularly concerning. It suggests that LightInTheBox is struggling to attract customers cost-effectively, which is important for sustainable growth in e-commerce. The company may need to innovate in its marketing strategies or improve its product offerings to reduce reliance on paid traffic.
While the pivot to profitability is commendable, LightInTheBox will need to find a way to reignite growth without sacrificing margins to remain competitive in the long term. The e-commerce landscape is unforgiving to players who can't maintain both profitability and growth.
- Returns to Profitability with Net Income of
"The second quarter of 2024 was a challenging one, with intensified competition and high traffic acquisition costs in the global e-commerce market continuing to weigh on our topline," said Mr. Jian He, Chairman and CEO of LightInTheBox. "However, our strategic pivot to prioritize profitability proved effective, resulting in a turnaround with net income reaching
"Encouraged by the outcomes of these initiatives, we will continue to concentrate on overall efficiency and profitability amid the evolving environment. Additionally, we will further upgrade our products, services and customer experience, as well as our localized operations, to differentiate ourselves and build brand recognition and loyalty in this competitive industry. As always, we are committed to driving high-quality development and delivering sustainable value to all stakeholders in the long run," Mr. He concluded.
Second Quarter 2024 Financial Highlights
- Total revenues were
$69.4 million $191.8 million - Net income was
$0.6 million $1.5 million - Adjusted EBITDA was an income of
$1.2 million $0.7 million
First Half 2024 Financial Highlights
- Total revenues were
$140.5 million $339.5 million - Net loss was
$3.2 million $5.4 million - Adjusted EBITDA was a loss of
$1.9 million $3.8 million
Second Quarter 2024 Financial Results
Total revenues decreased by
Total cost of revenues was
Gross profit in the second quarter of 2024 was
Total operating expenses in the second quarter of 2024 were
- Fulfillment expenses in the second quarter of 2024 were
$5.0 million $9.9 million 7.2% in the second quarter of 2024, compared with5.2% in the same quarter of 2023 and8.1% in the first quarter of 2024. - Selling and marketing expenses in the second quarter of 2024 were
$31.5 million $94.0 million 45.5% in the second quarter of 2024, compared with49.0% in the same quarter of 2023 and46.0% in the first quarter of 2024. - G&A expenses in the second quarter of 2024 were
$6.4 million $8.2 million 9.2% in the second quarter of 2024, compared with4.3% in the same quarter of 2023 and10.2% in the first quarter of 2024. As part of G&A expenses, R&D expenses in the second quarter of 2024 were$4.0 million $5.1 million $4.6 million
Income from operations was
Net income was
Net income per American Depository Share ("ADS") was
In the second quarter of 2024, the Company's basic weighted average number of ADSs used in computing the net income per ADS was 110,342,430.
Adjusted EBITDA was an income of
As of June 30, 2024, the Company had cash and cash equivalents and restricted cash of
First Half 2024 Financial Results
Total revenues decreased by
Total cost of revenues was
Gross profit in the first half of 2024 was
Total operating expenses in the first half of 2024 were
- Fulfillment expenses in the first half of 2024 were
$10.8 million $18.5 million 7.7% in the first half of 2024, compared with5.5% in the same period of 2023. - Selling and marketing expenses in the first half of 2024 were
$64.3 million $163.2 million 45.7% for the first half of 2024, compared with48.0% in the same period of 2023. - G&A expenses in the first half of 2024 were
$13.7 million $17.2 million 9.7% for the first half of 2024, compared with5.1% in the same period of 2023. Included in G&A expenses, R&D expenses in the first half of 2024 were$8.6 million $10.3 million
Loss from operations was
Net loss was
Net loss per American Depository Share ("ADS") was
In the first half of 2024, the Company's basic weighted average number of ADSs used in computing the net loss per ADS was 110,802,352.
Adjusted EBITDA was a loss of
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 Results" set forth at the end of this press release.
Conference Call
The Company's management will hold an earnings conference call at 9:00 a.m. Eastern Time on August 2, 2024 (9:00 p.m.
Preregistration Information
Participants can register for the conference call by going to https://s1.c-conf.com/diamondpass/10040986-jh7t5r.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 August 9, 2024. The dial-in details are:
US/Canada: +1-855-883-1031 |
Singapore: 800-101-3223 |
|
Replay PIN: 10040986 |
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 Condensed Consolidated Balance Sheets | ||||||||
( | ||||||||
As of December 31, | As of June 30, | |||||||
2023 | 2024 | |||||||
ASSETS | ||||||||
Current Assets | ||||||||
Cash and cash equivalents | 66,425 | 25,287 | ||||||
Restricted cash | 5,279 | 2,624 | ||||||
Accounts receivable, net of allowance for credit losses | 634 | 994 | ||||||
Inventories | 5,767 | 4,480 | ||||||
Prepaid expenses and other current assets | 6,875 | 9,098 | ||||||
Total current assets | 84,980 | 42,483 | ||||||
Property and equipment, net | 2,789 | 2,145 | ||||||
Intangible assets, net | 3,604 | 3,089 | ||||||
Goodwill | 27,393 | 26,778 | ||||||
Operating lease right-of-use assets | 6,559 | 6,934 | ||||||
Long-term rental deposits | 392 | 312 | ||||||
Long-term investment | - | 74 | ||||||
Other non-current assets | 592 | - | ||||||
TOTAL ASSETS | 126,309 | 81,815 | ||||||
LIABILITIES AND EQUITY / (DEFICIT) | ||||||||
Current Liabilities | ||||||||
Accounts payable | 15,846 | 14,227 | ||||||
Advance from customers | 17,001 | 13,258 | ||||||
Operating lease liabilities | 5,046 | 4,049 | ||||||
Accrued expenses and other current liabilities | 94,622 | 61,891 | ||||||
Total current liabilities | 132,515 | 93,425 | ||||||
Operating lease liabilities | 1,915 | 1,650 | ||||||
Deferred tax liabilities | 154 | 150 | ||||||
Unrecognized tax benefits | 107 | 107 | ||||||
TOTAL LIABILITIES | 134,691 | 95,332 | ||||||
EQUITY / (DEFICIT) | ||||||||
Ordinary shares | 17 | 17 | ||||||
Additional paid-in capital | 283,137 | 282,862 | ||||||
Treasury shares | (30,359) | (31,045) | ||||||
Accumulated other comprehensive loss | (1,856) | (2,823) | ||||||
Accumulated deficit | (259,321) | (262,528) | ||||||
TOTAL EQUITY / (DEFICIT) | (8,382) | (13,517) | ||||||
TOTAL LIABILITIES AND EQUITY / (DEFICIT) | 126,309 | 81,815 | ||||||
LightInTheBox Holding Co., Ltd. | ||||||||||||||||
Unaudited Condensed Consolidated Statements of Operations | ||||||||||||||||
( | ||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2023 | 2024 | 2023 | 2024 | |||||||||||||
Revenues | ||||||||||||||||
Product sales | 189,730 | 67,152 | 334,331 | 134,983 | ||||||||||||
Services and others | 2,037 | 2,210 | 5,217 | 5,548 | ||||||||||||
Total revenues | 191,767 | 69,362 | 339,548 | 140,531 | ||||||||||||
Cost of revenues | ||||||||||||||||
Product sales | (81,142) | (25,513) | (145,318) | (54,583) | ||||||||||||
Services and others | (435) | (559) | (1,538) | (1,209) | ||||||||||||
Total Cost of revenues | (81,577) | (26,072) | (146,856) | (55,792) | ||||||||||||
Gross profit | 110,190 | 43,290 | 192,692 | 84,739 | ||||||||||||
Operating expenses | ||||||||||||||||
Fulfillment | (9,906) | (5,010) | (18,542) | (10,756) | ||||||||||||
Selling and marketing | (94,038) | (31,527) | (163,150) | (64,268) | ||||||||||||
General and administrative | (8,176) | (6,411) | (17,233) | (13,670) | ||||||||||||
Other operating income | 332 | 277 | 677 | 563 | ||||||||||||
Total operating expenses | (111,788) | (42,671) | (198,248) | (88,131) | ||||||||||||
(Loss) / income from operations | (1,598) | 619 | (5,556) | (3,392) | ||||||||||||
Interest income | 143 | 14 | 173 | 84 | ||||||||||||
Interest expense | (1) | - | (2) | - | ||||||||||||
Other (expense) / income, net | (1) | (9) | 20 | 102 | ||||||||||||
Total other income | 141 | 5 | 191 | 186 | ||||||||||||
(Loss) / income before income taxes | (1,457) | 624 | (5,365) | (3,206) | ||||||||||||
Income tax expense | - | (1) | (48) | (1) | ||||||||||||
Net (loss) / income | (1,457) | 623 | (5,413) | (3,207) | ||||||||||||
Net (loss) / income attributable to LightInTheBox Holding Co., Ltd. | (1,457) | 623 | (5,413) | (3,207) | ||||||||||||
Weighted average numbers of shares used in calculating (loss) / income per ordinary share | ||||||||||||||||
-Basic | 226,738,924 | 220,684,859 | 226,699,828 | 221,604,704 | ||||||||||||
-Diluted | 226,738,924 | 221,451,741 | 226,699,828 | 221,604,704 | ||||||||||||
Net (loss) / income per ordinary share | ||||||||||||||||
-Basic | (0.01) | 0.00 | (0.02) | (0.01) | ||||||||||||
-Diluted | (0.01) | 0.00 | (0.02) | (0.01) | ||||||||||||
Net (loss) / income per ADS (2 ordinary shares equal to 1 ADS) | ||||||||||||||||
-Basic | (0.01) | 0.01 | (0.05) | (0.03) | ||||||||||||
-Diluted | (0.01) | 0.01 | (0.05) | (0.03) | ||||||||||||
LightInTheBox Holding Co., Ltd. | ||||||||||||||||
Unaudited Reconciliations of GAAP and Non-GAAP Results | ||||||||||||||||
( | ||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2023 | 2024 | 2023 | 2024 | |||||||||||||
Net (loss) / income | (1,457) | 623 | (5,413) | (3,207) | ||||||||||||
Less: Interest income | 143 | 14 | 173 | 84 | ||||||||||||
Interest expense | (1) | - | (2) | - | ||||||||||||
Income tax expense | - | (1) | (48) | (1) | ||||||||||||
Depreciation and amortization | (826) | (521) | (1,655) | (1,147) | ||||||||||||
EBITDA | (773) | 1,131 | (3,881) | (2,143) | ||||||||||||
Less: Share-based compensation | (78) | (52) | (83) | (276) | ||||||||||||
Adjusted EBITDA* | (695) | 1,183 | (3,798) | (1,867) | ||||||||||||
* Adjusted EBITDA represents net (loss) / income before share-based compensation expense, interest income, interest | ||||||||||||||||
View original content:https://www.prnewswire.com/news-releases/lightinthebox-reports-second-quarter-2024-financial-results-302213370.html
SOURCE LightInTheBox Holding Co., Ltd.
FAQ
What was LightInTheBox's (LITB) net income in Q2 2024?
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