Cision PR Newswire

LightInTheBox Reports Third Quarter 2022 Financial Results

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.

 

  

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SOURCE LightInTheBox Holding Co., Ltd.