LightInTheBox Reports Third Quarter 2021 Financial Results
LightInTheBox Holding Co., Ltd. (NYSE: LITB) reported its third quarter 2021 financial results, revealing total revenues of $98.7 million, down 1.3% year-over-year. Despite a significant growth in apparel sales, which rose 39.6% to $61.9 million, net loss increased to $6.1 million from a net income of $7.3 million in Q3 2020. The company faced rising operational costs, particularly in digital advertising and shipping. Notably, gross margin improved to 44.5% due to optimized product mix. Cash reserves decreased to $50.2 million as of September 30, 2021, down from $65.5 million at year-end 2020.
- Apparel sales grew 39.6% to $61.9 million, now representing 64.5% of total sales.
- Gross margin improved to 44.5% in Q3 2021 from 43.1% in Q3 2020.
- Total revenues for the first nine months increased 25.5% to $333.0 million.
- Net loss of $6.1 million compared to net income of $7.3 million in Q3 2020.
- Adjusted EBITDA decreased to negative $5.1 million from $12.7 million in Q3 2020.
- Total operating expenses rose significantly to $50.5 million from $41.5 million in Q3 2020.
SHANGHAI, Dec. 2, 2021 /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 third quarter ended September 30, 2021.
Third Quarter and First Nine Months 2021 Financial Highlights
Three Months Ended | Year-over- Change | Nine Months Ended | Year-over- Change | |||||||||||||
In millions, except percentages | September 30, | September 30, | September 30, | September 30, | ||||||||||||
2020 | 2021 | 2020 | 2021 | |||||||||||||
Total revenues | $ | 100.0 | $ | 98.7 | - | $ | 265.4 | $ | 333.0 | |||||||
- Apparel sales | $ | 44.4 | $ | 61.9 | $ | 95.7 | $ | 196.3 | ||||||||
Gross margin | ||||||||||||||||
Net income / (loss) | $ | 7.3 | $ | (6.1) | $ | 16.5 | $ | 4.7 | - | |||||||
Adjusted EBITDA | $ | 12.7 | $ | (5.1) | $ | 23.3 | $ | 11.7 | - | |||||||
As of December 31, | As of September 30, | |||||||||||||||
In millions | 2020 | 2021 | ||||||||||||||
Cash, cash equivalents and restricted cash | $ | 65.5 | $ | 50.2 | ||||||||||||
Mr. Jian He, Chief Executive Officer of LightInTheBox, commented, "We experienced certain cost pressures and challenging global economic conditions this quarter, which caused our results to be materially affected by external factors including higher than anticipated digital advertising cost, new European laws on VAT and market regulation on certain products, and changes in consumer sentiment and spending. Our operational costs were also affected by rising shipping and delivery cost, and fluctuation in foreign exchange rates. Despite the challenging economic environment, we are always optimizing our product mix especially for the higher margin apparel categories compared to standard categories like electronics. Our strength and experience in apparel has given us the capabilities to quickly respond to market uncertainties and meet the demand of evolving fashion trends. We remain committed to our proven growth strategy that capitalizes on our advantages in value-added services for online purchases and provides consumers with a well curated variety of globally sourced quality products. Total revenues for the third quarter were
Third Quarter 2021 Financial Results
Total revenues remained relatively stable year-over-year, which were
Total cost of revenues was
Gross profit in the third quarter of 2021 was
Total operating expenses in the third quarter of 2021 were
- Fulfillment expenses in the third quarter of 2021 were
$7.2 million , compared with$6.7 million in the same quarter of 2020. As a percentage of total revenues, fulfillment expenses were7.3% in the third quarter of 2021, compared with6.7% in the same quarter of 2020 and6.2% in the second quarter of 2021. - Selling and marketing expenses in the third quarter of 2021 were
$34.0 million , compared with$26.9 million in the same quarter of 2020. As a percentage of total revenues, selling and marketing expenses were34.4% for the third quarter of 2021, compared with26.9% in the same quarter of 2020 and35.6% in the second quarter of 2021. - G&A expenses in the third quarter of 2021 were
$9.3 million , compared with$7.9 million in the same quarter of 2020. As a percentage of total revenues, G&A expenses were9.4% for the third quarter of 2021, compared with7.9% in the same quarter of 2020 and7.8% in the second quarter of 2021. Included in G&A expenses, R&D expenses in the third quarter of 2021 were$5.5 million , compared with$3.5 million in the same quarter of 2020 and$5.1 million in the second quarter of 2021.
Loss from operations was
Other income, net in the third quarter of 2021 was
Net loss was
Net loss per American Depository Share ("ADS") was
In the third quarter of 2021, the Company's basic weighted average number of ADSs used in computing the net income per ADS was 112,160,252.
Adjusted EBITDA, which represents income / (loss) from operations before share-based compensation expense, interest income, interest expense, income tax expense and depreciation and amortization expenses, was negative
As of September 30, 2021, the Company had cash and cash equivalents and restricted cash of
First Nine Months of 2021 Financial Results
Total revenues increased by
Total cost of revenues was
Gross profit in the first nine months of 2021 was
Total operating expenses in the first nine months of 2021 were
- Fulfillment expenses in the first nine months of 2021 were
$22.1 million , compared with$19.1 million in the same period of 2020. As a percentage of total revenues, fulfillment expenses were6.6% in the first nine months of 2021, compared with7.2% in the same period of 2020. - Selling and marketing expenses in the first nine months of 2021 were
$113.1 million , compared with$68.2 million in the same period of 2020. As a percentage of total revenues, selling and marketing expenses were34.0% for the first nine months of 2021, compared with25.7% in the same period of 2020. - G&A expenses in the first nine months of 2021 were
$27.2 million , compared with$22.7 million in the same period of 2020. As a percentage of total revenues, G&A expenses were8.2% for the first nine months of 2021, compared with8.6% in the same period of 2020. Included in G&A expenses, R&D expenses in the first nine months of 2021 were$15.5 million , compared with$10.4 million in the same period of 2020.
Loss from operations was
Other income, net was
Net income was
Net income per American Depository Share ("ADS") was
In the first nine months of 2021, the Company's basic weighted average number of ADSs used in computing the net income per ADS was 112,110,030, and 113,307,665 in diluted weighted average number.
Adjusted EBITDA, which represents income from operations before share-based compensation expense, interest income, interest expense, income tax expense and depreciation and amortization expenses, was
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 December 2, 2021 (9:00 p.m. Beijing Time on the same day).
Preregistration Information
Participants can register for the conference call by navigating to http://apac.directeventreg.com/registration/event/5878276. 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 December 9, 2021. The dial-in details are:
US/Canada: | +1-855-452-5696 |
Hong Kong: | 800-963-117 |
International: | +61-2-8199-0299 |
Passcode: | 5878276 |
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 September 30, | |||
2020 | 2021 | |||
ASSETS | ||||
Current Assets | ||||
Cash and cash equivalents | 61,477 | 47,325 | ||
Restricted cash | 4,052 | 2,870 | ||
Accounts receivable, net of allowance for doubtful accounts | 1,302 | 497 | ||
Amounts due from related parties | 2,882 | 2,762 | ||
Inventories | 9,919 | 11,156 | ||
Prepaid expenses and other current assets | 5,176 | 6,411 | ||
Total current assets | 84,808 | 71,021 | ||
Property and equipment, net | 3,812 | 3,461 | ||
Intangible assets, net | 9,416 | 8,657 | ||
Goodwill | 29,745 | 30,113 | ||
Operating lease right-of-use assets | 12,243 | 8,530 | ||
Long-term rental deposits | 707 | 781 | ||
Long-term investments | 17,297 | 34,730 | ||
TOTAL ASSETS | 158,028 | 157,293 | ||
LIABILITIES AND EQUITY | ||||
Current Liabilities | ||||
Accounts payable | 16,953 | 17,444 | ||
Amounts due to related parties | 167 | 167 | ||
Advance from customers | 33,279 | 23,114 | ||
Operating lease liabilities | 4,269 | 2,941 | ||
Accrued expenses and other current liabilities | 42,183 | 44,648 | ||
Total current liabilities | 96,851 | 88,314 | ||
Operating lease liabilities | 8,118 | 5,817 | ||
Long-term payable | 124 | 89 | ||
Deferred tax liability | 3,558 | 7,907 | ||
TOTAL LIABILITIES | 108,651 | 102,127 | ||
EQUITY | ||||
Ordinary shares | 17 | 17 | ||
Additional paid-in capital | 282,260 | 282,515 | ||
Treasury shares, at cost | (30,207) | (29,992) | ||
Accumulated other comprehensive income | 1,795 | 2,489 | ||
Accumulated deficit | (204,571) | (199,986) | ||
Non-controlling interests | 83 | 123 | ||
TOTAL EQUITY | 49,377 | 55,166 | ||
TOTAL LIABILITIES AND EQUITY | 158,028 | 157,293 | ||
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 | Nine Months Ended | |||||||
September 30, | September 30, | September 30, | September 30, | |||||
2020 | 2021 | 2020 | 2021 | |||||
Revenues | ||||||||
Product sales | 95,426 | 95,961 | 252,597 | 324,720 | ||||
Services and others | 4,584 | 2,744 | 12,809 | 8,233 | ||||
Total revenues | 100,010 | 98,705 | 265,406 | 332,953 | ||||
Cost of revenues | ||||||||
Product sales | (53,857) | (54,018) | (139,726) | (177,051) | ||||
Services and others | (3,081) | (784) | (9,157) | (2,592) | ||||
Total Cost of revenues | (56,938) | (54,802) | (148,883) | (179,643) | ||||
Gross profit | 43,072 | 43,903 | 116,523 | 153,310 | ||||
Operating expenses | ||||||||
Fulfillment | (6,661) | (7,196) | (19,124) | (22,061) | ||||
Selling and marketing | (26,880) | (33,991) | (68,159) | (113,113) | ||||
General and administrative | (7,908) | (9,310) | (22,693) | (27,220) | ||||
Other operating income | (56) | 37 | 16 | 445 | ||||
Total operating expenses | (41,505) | (50,460) | (109,960) | (161,949) | ||||
Income / (Loss) from operations | 1,567 | (6,557) | 6,563 | (8,639) | ||||
Interest income | 4 | 27 | 57 | 47 | ||||
Interest expense | (35) | (3) | (78) | (11) | ||||
Other income, net* | 8,960 | 368 | 13,174 | 17,577 | ||||
Total other income | 8,929 | 392 | 13,153 | 17,613 | ||||
Income / (Loss) before income taxes | 10,496 | (6,165) | 19,716 | 8,974 | ||||
Income tax benefit / (expense) | (3,188) | 29 | (3,187) | (4,260) | ||||
Net income / (loss) | 7,308 | (6,136) | 16,529 | 4,714 | ||||
Less: Net (loss) / income attributable to non-controlling | (98) | (121) | 20 | 40 | ||||
Net income / (loss) attributable to LightInTheBox | 7,406 | (6,015) | 16,509 | 4,674 | ||||
Weighted average numbers of shares used in calculating | ||||||||
—Basic | 220,599,987 | 224,320,504 | 217,124,431 | 224,220,060 | ||||
—Diluted | 223,820,121 | 224,320,504 | 224,779,416 | 226,615,330 | ||||
Net income / (loss) per ordinary share | ||||||||
—Basic | 0.03 | (0.03) | 0.08 | 0.02 | ||||
—Diluted | 0.03 | (0.03) | 0.07 | 0.02 | ||||
Net income / (loss) per ADS (2 ordinary shares equal to | ||||||||
—Basic | 0.07 | (0.05) | 0.15 | 0.04 | ||||
—Diluted | 0.07 | (0.05) | 0.15 | 0.04 | ||||
*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 | Nine Months Ended | |||||||
September 30, | September 30, | September 30, | September 30, | |||||
2020 | 2021 | 2020 | 2021 | |||||
Net income / (loss) | 7,308 | (6,136) | 16,529 | 4,714 | ||||
Less: Interest income | 4 | 27 | 57 | 47 | ||||
Interest expense | (35) | (3) | (78) | (11) | ||||
Income tax benefit / (expense) | (3,188) | 29 | (3,187) | (4,260) | ||||
Depreciation and amortization | (633) | (990) | (1,770) | (2,482) | ||||
EBITDA | 11,160 | (5,199) | 21,507 | 11,420 | ||||
Less: Share-based compensation | (1,525) | (57) | (1,754) | (255) | ||||
Adjusted EBITDA* | 12,685 | (5,142) | 23,261 | 11,675 | ||||
* Adjusted EBITDA represents income from operations before share-based compensation expense, interest income, interest expense, income tax expense and depreciation and | ||||||||
View original content:https://www.prnewswire.com/news-releases/lightinthebox-reports-third-quarter-2021-financial-results-301436026.html
SOURCE LightInTheBox Holding Co., Ltd.
FAQ
What were LightInTheBox's Q3 2021 total revenues?
How did apparel sales perform in Q3 2021 for LITB?
What was the net loss reported by LightInTheBox in Q3 2021?
How much did LightInTheBox's cash reserves decline by end of September 2021?
What was the adjusted EBITDA for LightInTheBox in Q3 2021?
