LightInTheBox Reports Third Quarter 2022 Financial Results
LightInTheBox reported its unaudited financial results for Q3 2022 with total revenues soaring by 22.6% year-over-year to $121.0 million. Apparel sales surged 60.8% to $99.6 million, comprising 82.3% of total revenues. Gross margin improved to 57.9%, reflecting the company's strategic shift toward higher-margin apparel products. The net loss narrowed significantly to $0.4 million from $6.1 million in Q3 2021. For the first nine months of 2022, total revenues increased by 4.3% to $347.2 million, but net loss reached $8.3 million, compared to net income in the previous year.
- 22.6% year-over-year revenue growth, reaching $121.0 million in Q3 2022.
- Apparel sales surged by 60.8% year-over-year to $99.6 million, making up 82.3% of total revenues.
- Gross margin improved to 57.9% in Q3 2022 versus 44.5% in Q3 2021.
- Net loss narrowed to $0.4 million in Q3 2022 from $6.1 million in the same period last year.
- Adjusted EBITDA turned positive at $0.4 million in Q3 2022, compared to a loss of $5.1 million in Q3 2021.
- Net loss for the first nine months of 2022 reached $8.3 million, compared to net income of $4.7 million in the same period of 2021.
- Total operating expenses rose to $200.0 million in the first nine months of 2022, up from $161.9 million year-over-year.
SINGAPORE, Nov. 25, 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 third quarter ended September 30, 2022.
Third Quarter and First Nine Months 2022 Financial Highlights
Three Months Ended | Year- | Nine Months Ended | Year- | |||||||||||||||||||||
September | September | Year % | September | September | Year % | |||||||||||||||||||
In millions, except | 2021 | 2022 | Change | 2021 | 2022 | Change | ||||||||||||||||||
Total revenues | $ | 98.7 | $ | 121.0 | 22.6 | % | $ | 333.0 | $ | 347.2 | 4.3 | % | ||||||||||||
- Apparel sales | $ | 61.9 | $ | 99.6 | 60.8 | % | $ | 196.3 | $ | 275.6 | 40.4 | % | ||||||||||||
Apparel sales/total revenues | 62.7 | % | 82.3 | % | 59.0 | % | 79.4 | % | ||||||||||||||||
Gross margin | 44.5 | % | 57.9 | % | 46.0 | % | 54.9 | % | ||||||||||||||||
Net (loss) / income | $ | (6.1) | $ | (0.4) | $ | 4.7 | $ | (8.3) | ||||||||||||||||
Adjusted EBITDA | $ | (5.1) | $ | 0.4 | $ | 11.7 | $ | (5.7) | ||||||||||||||||
As of | As of | |||||||
In millions | 2021 | 2022 | ||||||
Cash, cash equivalents and restricted cash | $ | 50.2 | $ | 57.0 | ||||
Mr. Jian He, Chief Executive Officer of LightInTheBox, commented, "We delivered solid financial performance in the third quarter of 2022 despite macro headwinds including rampant inflation, foreign exchange volatility, high energy prices and consumption contraction in many of our markets. Revenue growth accelerated with a
Third Quarter 2022 Financial Results
Total revenues increased by
Total cost of revenues was
Gross profit in the third quarter of 2022 was
Total operating expenses in the third quarter of 2022 were
- Fulfillment expenses in the third quarter of 2022 were
$7.1 million , compared with$7.2 million in the same quarter of 2021. As a percentage of total revenues, fulfillment expenses were5.9% in the third quarter of 2022, compared with7.3% in the same quarter of 2021 and5.9% in the second quarter of 2022. - Selling and marketing expenses in the third quarter of 2022 were
$53.1 million , compared with$34.0 million in the same quarter of 2021. As a percentage of total revenues, selling and marketing expenses were43.9% for the third quarter of 2022, compared with34.4% in the same quarter of 2021 and44.0% in the second quarter of 2022. - G&A expenses in the third quarter of 2022 were
$10.3 million , compared with$9.3 million in the same quarter of 2021. As a percentage of total revenues, G&A expenses were8.5% for the third quarter of 2022, compared with9.4% in the same quarter of 2021 and7.3% in the second quarter of 2022. Included in G&A expenses, R&D expenses in the third quarter of 2022 were$4.8 million , compared with$5.5 million in the same quarter of 2021 and$4.7 million in the second quarter of 2022.
Loss from operations was
Net loss was
Net loss per American Depository Share ("ADS") was nil in the third quarter of 2022, compared with net loss per ADS of
In the third quarter of 2022, the Company's basic weighted average number of ADSs used in computing the net loss per ADS was 113,120,919.
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
As of September 30, 2022, the Company had cash and cash equivalents and restricted cash of
First Nine Months of 2022 Financial Results
Total revenues increased
Total cost of revenues was
Gross profit in the first nine months of 2022 was
Total operating expenses in the first nine months of 2022 were
- Fulfillment expenses in the first nine months of 2022 were
$21.8 million , compared with$22.1 million in the same period of 2021. As a percentage of total revenues, fulfillment expenses were6.3% in the first nine months of 2022, compared with6.6% in the same period of 2021. - Selling and marketing expenses in the first nine months of 2022 were
$150.4 million , compared with$113.1 million in the same period of 2021. As a percentage of total revenues, selling and marketing expenses were43.3% for the first nine months of 2022, compared with34.0% in the same period of 2021. - G&A expenses in the first nine months of 2022 were
$28.0 million , compared with$27.2 million in the same period of 2021. As a percentage of total revenues, G&A expenses were8.1% for the first nine months of 2022, compared with8.2% in the same period of 2021. Included in G&A expenses, R&D expenses in the first nine months of 2022 were$14.1 million , compared with$15.5 million in the same period of 2021.
Loss from operations was
Other income, net was
Net loss was
Net loss per American Depository Share ("ADS") was
In the first nine months of 2022, the Company's basic weighted average number of ADSs used in computing the net loss per ADS was 113,077,340.
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.
Recent Development
On October 28, 2022, the Company received a letter from the New York Stock Exchange ("NYSE"), indicating that the Company is "below criteria" due to the average closing price of the Company's ADSs being less than
The Company can regain compliance at any time during the six-month cure period if on the last trading day of any calendar month during the cure period the Company has a closing share price of at least
The Company notified the NYSE on November 8, 2022 of its intent to cure the deficiency. The Company's ADSs will continue to be listed and traded on the NYSE, subject to compliance with other NYSE continued listing standards and other rights of the NYSE to delist the ADSs. The Company is currently in compliance with all other NYSE continued listing standards. The NYSE notification does not affect the Company's business operations or its Securities and Exchange Commission reporting requirements.
Conference Call
The Company will hold a conference call to discuss the results at 8:00 a.m. Eastern Time on November 25, 2022 (9:00 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/10026943-hf85yq.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 December 2, 2022. The dial-in details are:
US/Canada: | +1-855-883-1031 | |
Hong Kong: | 800-930-639 | |
Replay PIN: | 10026943 |
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: linda.bergkamp@christensencomms.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, | |||
2021 | 2022 | |||
ASSETS | ||||
Current Assets | ||||
Cash and cash equivalents | 55,942 | 52,469 | ||
Restricted cash | 3,660 | 4,566 | ||
Accounts receivable, net of allowance for credit losses | 1,625 | 735 | ||
Amounts due from related parties | 2,730 | - | ||
Inventories | 11,997 | 11,248 | ||
Prepaid expenses and other current assets | 7,947 | 9,877 | ||
Total current assets | 83,901 | 78,895 | ||
Property and equipment, net | 3,312 | 2,993 | ||
Intangible assets, net | 8,232 | 6,008 | ||
Goodwill | 30,440 | 27,342 | ||
Operating lease right-of-use assets | 11,584 | 11,435 | ||
Long-term rental deposits | 1,218 | 1,173 | ||
Long-term investments | 56,383 | 57,232 | ||
Other non-current assets | 296 | 79 | ||
TOTAL ASSETS | 195,366 | 185,157 | ||
LIABILITIES AND EQUITY | ||||
Current Liabilities | ||||
Accounts payable | 23,535 | 17,588 | ||
Advance from customers | 24,789 | 26,581 | ||
Operating lease liabilities | 3,784 | 4,857 | ||
Accrued expenses and other current liabilities | 57,819 | 63,614 | ||
Total current liabilities | 109,927 | 112,640 | ||
Operating lease liabilities | 7,864 | 7,388 | ||
Long-term payable | 78 | 42 | ||
Deferred tax liabilities | 517 | 519 | ||
Unrecognized tax benefits | 13,101 | 11,740 | ||
TOTAL LIABILITIES | 131,487 | 132,329 | ||
EQUITY | ||||
Ordinary shares | 17 | 17 | ||
Additional paid-in capital | 282,382 | 282,457 | ||
Treasury shares | (29,309) | (29,309) | ||
Accumulated other comprehensive income | 2,737 | (73) | ||
Accumulated deficit | (192,072) | (200,264) | ||
Non-controlling interests | 124 | - | ||
TOTAL EQUITY | 63,879 | 52,828 | ||
TOTAL LIABILITIES AND EQUITY | 195,366 | 185,157 | ||
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, | |||||
2021 | 2022 | 2021 | 2022 | |||||
Revenues | ||||||||
Product sales | 95,961 | 117,980 | 324,720 | 339,151 | ||||
Services and others | 2,744 | 3,047 | 8,233 | 7,999 | ||||
Total revenues | 98,705 | 121,027 | 332,953 | 347,150 | ||||
Cost of revenues | ||||||||
Product sales | (54,018) | (49,570) | (177,051) | (152,854) | ||||
Services and others | (784) | (1,437) | (2,592) | (3,604) | ||||
Total Cost of revenues | (54,802) | (51,007) | (179,643) | (156,458) | ||||
Gross profit | 43,903 | 70,020 | 153,310 | 190,692 | ||||
Operating expenses | ||||||||
Fulfillment | (7,196) | (7,116) | (22,061) | (21,754) | ||||
Selling and marketing | (33,991) | (53,100) | (113,113) | (150,357) | ||||
General and administrative | (9,310) | (10,315) | (27,220) | (28,042) | ||||
Other operating income | 37 | 39 | 445 | 131 | ||||
Total operating expenses | (50,460) | (70,492) | (161,949) | (200,022) | ||||
Loss from operations | (6,557) | (472) | (8,639) | (9,330) | ||||
Interest income | 27 | 20 | 47 | 37 | ||||
Interest expense | (3) | (1) | (11) | (4) | ||||
Other income, net | 368 | 45 | 17,577 | 990 | ||||
Total other income | 392 | 64 | 17,613 | 1,023 | ||||
(Loss) / Income before income taxes | (6,165) | (408) | 8,974 | (8,307) | ||||
Income tax benefit / (expense) | 29 | - | (4,260) | (9) | ||||
Net (loss) / income | (6,136) | (408) | 4,714 | (8,316) | ||||
Less: Net (loss) / income attributable to non- | (121) | - | 40 | - | ||||
Net (loss) / income attributable to LightInTheBox | (6,015) | (408) | 4,674 | (8,316) | ||||
Weighted average numbers of shares used in | ||||||||
—Basic | 224,320,504 | 226,241,837 | 224,220,060 | 226,154,680 | ||||
—Diluted | 224,320,504 | 226,241,837 | 226,615,330 | 226,154,680 | ||||
Net (loss) / income per ordinary share | ||||||||
—Basic | (0.03) | (0.00) | 0.02 | (0.04) | ||||
—Diluted | (0.03) | (0.00) | 0.02 | (0.04) | ||||
Net (loss) / income per ADS (2 ordinary shares | ||||||||
—Basic | (0.05) | (0.00) | 0.04 | (0.07) | ||||
—Diluted | (0.05) | (0.00) | 0.04 | (0.07) | ||||
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, | |||||
2021 | 2022 | 2021 | 2022 | |||||
Net (loss) / income | (6,136) | (408) | 4,714 | (8,316) | ||||
Less: Interest income | 27 | 20 | 47 | 37 | ||||
Interest expense | (3) | (1) | (11) | (4) | ||||
Income tax expense | 29 | 0 | (4,260) | (9) | ||||
Depreciation and amortization | (990) | (854) | (2,482) | (2,568) | ||||
EBITDA | (5,199) | 427 | 11,420 | (5,772) | ||||
Less: Share-based compensation | (57) | (9) | (255) | (75) | ||||
Adjusted EBITDA* | (5,142) | 436 | 11,675 | (5,697) | ||||
* Adjusted EBITDA represents income / (loss) from operations before share-based compensation expense, interest | ||||||||
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SOURCE LightInTheBox Holding Co., Ltd.
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