LightInTheBox Reports Second Quarter 2022 Financial Results
SHANGHAI,Sept. 6,2022 -- 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 second quarter ended June30,2022.
Second Quarter and First Half 2022 Financial Highlights
Three MonthsEnded
Year-over-
Six Months Ended
Year-over-
June30,
June30,
Year %
June30,
Year %
In millions,except percentages
2021
2022
Change
2021
2022
Change
Total revenues
$
122.2
$
132.4
8.3
%
$
234.2
$
226.1
(3.5)
%
- Apparel sales
$
75.3
$
108.7
44.4
%
$
134.4
$
175.9
30.9
%
Apparel sales / Total revenues
61.6
%
82.1
%
57.4
%
77.8
%
Gross margin
46.8
%
55.3
%
46.7
%
53.4
%
Net income / (loss)
$
9.5
$
(2.4)
$
10.9
$
(7.9)
Adjusted EBITDA
$
14.5
$
(1.5)
$
16.8
$
(6.1)
Asof December31,
Asof June30,
In millions
2021
2022
Cash,cash equivalents and restricted cash
$
59.6
$
65.7
Mr.Jian He,Chief Executive Officer of LightInTheBox,commented,"We delivered a solid financial performance in the second quarter of 2022,despite challenges caused by macro headwinds including the COVID resurgence in China,soft consumer sentiment globally and fluctuations in foreign exchange rates. Our top line increased 8.3% year-over-year,returning to growth,while our loss significantly narrowed on a sequential basis due to improvements in our product mix and operating efficiency. During these difficult times,we have proved ourselves as a trusted platform with strong track record,receiving continued support from our long-term partners. Although uncertainties are still ahead of us,we will continue to improve our operational efficiency and customer experience. We have seen definite improvements in our supply chain and logistics,and we are confident of maintaining revenue growth momentum in the second half of 2022."
Second Quarter 2022 Financial Results
Total revenues increased by 8.3% year-over-year to $132.4 million from $122.2 million in the same quarter of 2021. Revenues generated from product sales were $129.8 million,compared with $119.3 million in the same quarter of 2021. Revenues from services and others were $2.6 million,compared with $2.9 million in the same quarter of 2021. Included in product sales,revenues from apparel increased by 44.4% to $108.7 million in the second quarter of 2022,compared with $75.3 million in the same quarter of 2021. Revenues from apparel represented 82.1% of total revenues in the second quarter of 2022,and 61.6% in the same quarter of 2021.
Total cost of revenues was $59.2 million in the second quarter of 2022,compared with $65.1 million in the same quarter of 2021. Cost for product sales was $58.2 million in the second quarter of 2022,compared with $64.0 million in the same quarter of 2021. Cost for services and others was $1.0 million in the second quarter of 2022,compared with $1.1 million in the same quarter of 2021.
Gross profit in the second quarter of 2022 was $73.2 million,compared with $57.1 million in the same quarter of 2021. Gross margin was 55.3% in the second quarter of 2022,compared with 46.8% in the same quarter of 2021. The increase in gross margin was a result of the Company's continuous efforts to optimize our product mix.
Total operating expenses in the second quarter of 2022 were $75.6 million,compared with $60.6 million in the same quarter of 2021
Fulfillment expenses in the second quarter of 2022 were $7.8 million,compared with $7.6 million in the same quarter of 2021. As a percentage of total revenues,fulfillment expenses were 5.9% in the second quarter of 2022,compared with 6.2% in the same quarter of 2021 and 7.3% in the first quarter of 2022.
Selling and marketing expenses in the second quarter of 2022 were $58.2 million,compared with $43.5 million in the same quarter of 2021. As a percentage of total revenues,selling and marketing expenses were 44.0% for the second quarter of 2022,compared with 35.6% in the same quarter of 2021 and 41.6% in the first quarter of 2022.
G&A expenses in the second quarter of 2022 were $9.7 million,compared with $9.5 million in the same quarter of 2021. As a percentage of total revenues,G&A expenses were 7.3% for the second quarter of 2022,compared with 7.8% in the same quarter of 2021 and 8.6% in the first quarter of 2022. Included in G&A expenses,R&D expenses in the second quarter of 2022 were $4.7 million,compared with $5.1 million in the same quarter of 2021 and $4.6 million in the first quarter of 2022.
Loss from operationswas $2.5 million in the second quarter of 2022,compared with $3.5 million in the same quarter of 2021.
Other income,netin the second quarter of 2022 was $0.1 million,compared with other income,net of $17.2 million in the same quarter of 2021. Included in other income,net in the second quarter of 2021,$17.1 million was derived from change in fair value on our equity investment. The gain in fair value change on our equity investment,after respective income tax of $4.2 million,was $12.9 million.
Net loss was $2.4 million in the second quarter of 2022,compared with net income of $9.5 million in the same quarter of 2021.
Net loss per American Depository Share ("ADS") was $0.02 in the second quarter of 2022,compared with net income per ADS of $0.08 in the same quarter of 2021. Each ADS represents two ordinary shares. The diluted net loss per ADS in the second quarter of 2022 was $0.02,compared with the diluted net income per ADS of $0.08 in the same quarter of 2021.
In the second quarter of 2022,the Company's basic weighted average number of ADSs used in computing the net income per ADS was 113,070,465.
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 $1.5 million in the second quarter of 2022,compared with income of $14.5 million in the same quarter of 2021.
As of June30,2022,the Company had cash and cash equivalents and restricted cash of $65.7 million,compared with $59.6 million as of December31,2021.
First Half 2022 Financial Results
Total revenues decreased 3.5% year-over-year to $226.1 million from $234.2 million in the same half of 2021. Revenues generated from product sales were $221.2 million,compared with $228.7 million in the same half of 2021. Revenues from services and others were $4.9 million,compared with $5.5 million in the same half of 2021. Included in product sales,revenues from apparel increased by 30.9% to $175.9 million in the first half of 2022,compared with $134.4 million in the same half of 2021. Revenues from apparel represented 77.8% of total revenues in the first half of 2021,and 57.4% in the same half of 2021.
Total cost of revenues was $105.5 million in the first half of 2022,compared with $124.8 million in the same half of 2021. Cost for product sales was $103.3 million in the first half of 2022,compared with $123.0 million in the same half of 2021. Cost for services and others was $2.2 million in the first half of 2022,compared with $1.8 million in the same half of 2021.
Gross profit in the first half of 2022 was $120.7 million,compared with $109.4 million in the same half of 2021. Gross margin was 53.4% in the first half of 2022,compared with 46.7% in the same half of 2021. The increase in gross margin was a result of the Company's continuous efforts to drive revenues from product categories with higher margins.
Total operating expenses in the first half of 2022 were $129.5 million,compared with $111.5 million in the same half of 2021.
Fulfillment expenses in the first half of 2022 were $14.6 million,compared with $14.9 million in the same half of 2021. As a percentage of total revenues,fulfillment expenses were 6.5% in the first half of 2022,compared with 6.3% in the same half of 2021.
Selling and marketing expenses in the first half of 2022 were $97.3 million,compared with $79.1 million in the same half of 2021. As a percentage of total revenues,selling and marketing expenses were 43.0% for the first half of 2022,compared with 33.8% in the same half of 2021.
G&A expenses in the first half of 2022 were $17.7 million,compared with $17.9 million in the same half of 2021. As a percentage of total revenues,G&A expenses were 7.8% for the first half of 2022,compared with 7.6% in the same half of 2021. Included in G&A expenses,R&D expenses in the first half of 2022 were $9.3 million,compared with $10.0 million in the same half of 2021.
Loss from operationswas $8.9 million in the first half of 2022,compared with $2.1 million in the same half of 2021.
Other income,net was $0.9 million in the first half of 2022,compared with $17.2 million in the same half of 2021. Included in other income,net,change in fair value on our equity investment was $0.8 million in the first half of 2022,compared with $17.1 million in the same half 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 half of 2022,compared with $12.9 million after respective income tax of $4.2 million in the same half of 2021.
Net loss was $7.9 million in the first half of 2022,compared with net income of $10.9 million in the same half of 2021.
Net loss per American Depository Share ("ADS") was $0.07 in the first half of 2022,compared with net income per ADS of $0.10 in the same half of 2021. Each ADS represents two ordinary shares. The diluted net loss per ADS for the first half of 2022 was $0.07,compared with the diluted net income per ADS of $0.09 in the same half of 2021.
In the first half of 2022,062,096.
Adjusted EBITDA,was negative $6.1 million in the first half of 2022,compared with income of $16.8 million in the same half 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,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 September6,2022 (8:00 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/10024891-4mlfy6f.html. Once preregistration has been completed,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 joined to the conference instantly.
A telephone replay will be available two hours after the conclusion of the conference call through September14,2022. The dial-in details are:
US/Canada:
+1-855-883-1031
Hong Kong:
800-930-639
Passcode:
10024891
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.sgand 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)
AsofDecember31,
AsofJune30,
2021
2022
ASSETS
Current Assets
Cash and cash equivalents
55,942
62,118
Restricted cash
3,660
3,603
Accounts receivable,net of allowance for credit losses
1,625
316
Amounts due from related parties
2,730
-
Inventories
11,997
11,055
Prepaid expenses and other current assets
7,947
7,878
Total current assets
83,901
84,970
Property and equipment,net
3,312
2,774
Intangible assets,net
8,232
6,844
Goodwill
30,440
28,994
Operating lease right-of-use assets
11,584
11,852
Long-term rental deposits
1,218
1,073
Long-term investments
56,383
57,232
Other non-current assets
296
454
TOTAL ASSETS
195,366
194,193
LIABILITIES AND EQUITY
Current Liabilities
Accounts payable
23,535
15,636
Advance from customers
24,789
30,445
Operating lease liabilities
3,784
4,503
Accrued expenses and other current liabilities
57,819
67,808
Total current liabilities
109,927
118,392
Operating lease liabilities
7,864
8,142
Long-term payable
78
55
Deferred tax liabilities
517
522
Unrecognized tax benefits
13,101
12,466
TOTAL LIABILITIES
131,487
139,577
EQUITY
Ordinary shares
17
17
Additional paid-in capital
282,382
282,448
Treasury shares
(29,309)
(29,309)
Accumulated other comprehensive income
2,737
1,316
Accumulated deficit
(192,072)
(199,855)
Non-controlling interests
124
(1)
TOTAL EQUITY
63,879
54,616
TOTAL LIABILITIES AND EQUITY
195,193
LightInTheBox Holding Co.,Ltd.
Unaudited Condensed Consolidated Statements of Operations
(U.S. dollars in thousands,except per share data,or otherwise noted)
Three MonthsEnded
Six MonthsEnded
June30,
2021
2022
2021
2022
Revenues
Product sales
119,337
129,828
228,759
221,171
Services and others
2,864
2,527
5,489
4,952
Total revenues
122,201
132,355
234,248
226,123
Cost of revenues
Product sales
(64,001)
(58,214)
(123,033)
(103,284)
Services and others
(1,051)
(983)
(1,808)
(2,167)
Total Cost of revenues
(65,052)
(59,197)
(124,841)
(105,451)
Gross profit
57,149
73,158
109,407
120,672
Operating expenses
Fulfillment
(7,619)
(7,774)
(14,865)
(14,638)
Selling and marketing
(43,531)
(58,225)
(79,122)
(97,257)
General and administrative
(9,494)
(9,661)
(17,910)
(17,727)
Other operating income
45
26
408
92
Total operating expenses
(60,599)
(75,634)
(111,489)
(129,530)
Loss from operations
(3,450)
(2,476)
(2,082)
(8,858)
Interest income
15
7
20
17
Interest expense
(4)
(1)
(8)
(3)
Other income,net*
17,178
83
17,209
945
Total other income
17,189
89
17,221
959
Income / (Loss) before income taxes
13,739
(2,387)
15,139
(7,899)
Income tax expense
(4,282)
(9)
(4,289)
(9)
Net income / (loss)
9,457
(2,396)
10,850
(7,908)
Less: Net income attributable to non-controlling interests
76
-
161
-
Net income / (loss) attributable to LightInTheBox Holding
Co.,Ltd.
9,381
(2,689
(7,908)
Weighted average numbers of shares used in calculating
income / (loss) per ordinary share
—Basic
224,198,651
226,140,929
224,153,140
226,124,192
—Diluted
226,744,109
226,929
226,805,062
226,192
Net income / (loss) per ordinary share
—Basic
0.04
(0.01)
0.05
(0.03)
—Diluted
0.04
(0.01)
0.05
(0.03)
Net income / (loss) per ADS (2 ordinary shares equal to
1 ADS)
—Basic
0.08
(0.02)
0.10
(0.07)
—Diluted
0.08
(0.02)
0.09
(0.07)
*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,
2021
2022
2021
2022
Net income / (loss)
9,908)
Less: Interest income
15
7
20
17
Interest expense
(4)
(1)
(8)
(3)
Income tax expense
(4,289)
(9)
Depreciation and amortization
(752)
(861)
(1,492)
(1,719)
EBITDA
14,480
(1,532)
16,619
(6,194)
Less: Share-based compensation
(58)
(30)
(198)
(66)
Adjusted EBITDA*
14,538
(1,502)
16,817
(6,128)
* Adjusted EBITDA represents income / (loss) from operations before share-based compensation expense,
interest expense,income tax expense and depreciation and amortization expenses.
