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-
over-
|
|
|
Nine Months
Ended
|
|
|
Year-
over-
|
|
|
|
September
30,
|
|
|
September
30,
|
|
|
Year
%
|
|
|
September
30,
|
|
|
September
30,
|
|
|
Year
%
|
|
In millions, except
percentages
|
|
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
September 30,
|
|
|
As of
September 30,
|
|
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 23% year-over-year increase, adjusted EBITDA was
$0.4 million, and net loss narrowed
further to $0.4 million. This is
again a testament to our proven strategy, strong execution
capabilities and differentiated competitiveness, making us stand
out in a tough market. This improved performance is primarily the
result of our ongoing product shift to mainly apparels. Going
forward, we will embark on a campaign to re-position our brand
among our valued customers in line with this our product strategy.
We will continue to consolidate our strengths in supply chain
management, optimize operational efficiency and customer experience
to navigate through uncertainties and deliver long-term
growth."
Third Quarter 2022 Financial Results
Total revenues increased by 22.6% year-over-year to
$121.0 million from $98.7 million in the same quarter of 2021. Sales
from apparel increased by 60.8% to $99.6
million in the third quarter of 2022, compared with
$61.9 million in the same quarter of
2021. Revenues from apparel represented 82.3% of total revenues in
the third quarter of 2022, and 62.7% in the same quarter of
2021.
Total cost of revenues was $51.0
million in the third quarter of 2022, compared with
$54.8 million in the same quarter of
2021.
Gross profit in the third quarter of 2022 was
$70.0 million, compared with
$43.9 million in the same quarter of
2021. Gross margin was 57.9% in the third quarter of 2022, compared
with 44.5% in the same quarter of 2021. The increase in gross
margin was a result of the Company's continuous efforts to optimize
its product mix to apparel sales.
Total operating expenses in the third quarter of 2022
were $70.5 million, compared with
$50.5 million in the same quarter of
2021.
- 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 were
5.9% in the third quarter of 2022, compared with 7.3% in the same
quarter of 2021 and 5.9% 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 were 43.9% for the third quarter of 2022,
compared with 34.4% in the same quarter of 2021 and 44.0% 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 were 8.5%
for the third quarter of 2022, compared with 9.4% in the same
quarter of 2021 and 7.3% 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 $0.5
million in the third quarter of 2022, compared with
$6.6 million in the same quarter of
2021.
Net loss was $0.4 million
in the third quarter of 2022, compared with $6.1 million in the same quarter of 2021.
Net loss per American Depository Share ("ADS") was nil in
the third quarter of 2022, compared with net loss per ADS of
$0.05 in the same quarter of 2021.
Each ADS represents two ordinary shares. The diluted net loss per
ADS in the third quarter of 2022 was nil, compared with the diluted
net loss per ADS of $0.05 in the same
quarter of 2021.
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 $0.4
million in the third quarter of 2022, compared with a loss
of $5.1 million in the same quarter
of 2021.
As of September 30, 2022, the
Company had cash and cash equivalents and restricted cash of
$57.0 million, compared with
$50.2 million as of September 30, 2021.
First Nine Months of 2022 Financial Results
Total revenues increased 4.3% year-over-year to
$347.2 million from $333.0 million in the same period of 2021.
Revenues from apparel increased by 40.4% to $275.6 million in the first nine months of 2022,
compared with $196.3 million in the
same period of 2021, representing 79.4% of total revenues in the
first nine months of 2022, and 59.0% in the same period of
2021.
Total cost of revenues was $156.5
million in the first nine months of 2022, compared with
$179.6 million in the same period of
2021.
Gross profit in the first nine months of 2022 was
$190.7 million, compared with
$153.3 million in the same period of
2021. Gross margin was 54.9% in the first nine months of 2022,
compared with 46.0% in the same period of 2021. The increase in
gross margin was a result of the Company's continuous efforts to
switch our product mix to apparels with higher margins.
Total operating expenses in the first nine months of 2022
were $200.0 million, compared with
$161.9 million in the same period of
2021.
- 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 were
6.3% in the first nine months of 2022, compared with 6.6% 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 were 43.3% for the first nine months of 2022,
compared with 34.0% 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 were 8.1%
for the first nine months of 2022, compared with 8.2% 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 $9.3
million in the first nine months of 2022, compared with
$8.6 million in the same period of
2021.
Other income, net was $1.0
million in the first nine months of 2022, compared with
$17.6 million in the same period of
2021. Included in other income, net, change in fair value on our
equity investment was $0.8 million in
the first nine months of 2022, compared with $17.1 million in the same period of 2021. The
gain in fair value change on our equity investment, after
respective income tax of $nil, was $0.8
million in the first nine months of 2022, compared with
$12.8 million after respective income
tax of $4.3 million in the same
period of 2021.
Net loss was $8.3 million
in the first nine months of 2022, compared with net income of
$4.7 million in the same period of
2021.
Net loss per American Depository Share ("ADS") was
$0.07 in the first nine months of
2022, compared with net income per ADS of $0.04 in the same period of 2021. Each ADS
represents two ordinary shares. The diluted net loss per ADS for
the first nine months of 2022 was $0.07, compared with the diluted net income per
ADS of $0.04 in the same period of
2021.
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 $5.7
million in the first nine months of 2022, compared with
income of $11.7 million in the same
period of 2021.
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 $1.00 over a consecutive 30-trading-day period
pursuant to Section 802.01C of the NYSE Listed Company Manual.
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 $1.00 and an average
closing share price of at least $1.00
over the 30 trading-day period ending on the last trading day of
that month. In the event that at the expiration of the six-month
cure period, both a $1.00 closing
share price on the last trading day of the cure period and a
$1.00 average closing share price
over the 30 trading-day period ending on the last trading day of
the cure period are not attained, the NYSE will commence suspension
and delisting procedures.
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-
controlling interests
|
|
(121)
|
|
-
|
|
40
|
|
-
|
Net (loss) / income
attributable to LightInTheBox
Holding Co., Ltd.
|
|
(6,015)
|
|
(408)
|
|
4,674
|
|
(8,316)
|
|
|
|
|
|
|
|
|
|
Weighted average
numbers of shares used in
calculating (loss) / income per ordinary share
|
|
|
|
|
|
|
|
|
—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
equal to 1 ADS)
|
|
|
|
|
|
|
|
|
—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
income, interest expense, income tax expense and depreciation and
amortization expenses.
|
View original
content:https://www.prnewswire.com/news-releases/lightinthebox-reports-third-quarter-2022-financial-results-301687061.html
SOURCE LightInTheBox Holding Co., Ltd.