LightInTheBox Reports First Quarter 2024 Financial Results

Published

SINGAPORE , May 28, 2024 /PRNewswire/ -- LightInTheBox Holding Co., Ltd. (NYSE: LITB) ("LightInTheBox" or the "Company"), an apparel e-commerce retailer that ships products to consumers worldwide, today announced its unaudited financial results for the first quarter ended March 31, 2024.

"We faced macroeconomic headwinds and increasing competition in the first quarter of 2024," said Mr. Jian He, Chairman and CEO of LightInTheBox. "We addressed the complex landscape with our high-quality development strategy, pivoting from prioritizing sales growth to focusing on profitability. We also strove to grow our brand awareness with high value-for-money products and optimize our consumption experience."

"As we move through 2024, we will remain focused on high-quality development and profitability. We are fostering new brands and initiating a series of strategic adjustments to differentiate our products, services and customer experience while refining our localized operations and marketing campaigns in key markets. We believe these strategic initiatives will optimize marketing ROI, drive user traffic and cultivate a loyal customer base over time, strengthening our brand recognition worldwide and overall competitiveness. Delivering high-quality development and sustainable, long-term value for all stakeholders remains our ultimate goal," Mr. He concluded.

First Quarter 2024 Financial Highlights

  • Total revenues were $71.2 million in the first quarter of 2024, compared with $147.8 million in the same period of 2023.
  • Apparel sales were $56.4 million in the first quarter of 2024, compared with $119.2 million in the same period of 2023.
  • Net loss was $3.8 million in the first quarter of 2024, compared with $4.0 million in the same period of 2023.
  • Adjusted EBITDA was a loss of $3.1 million in the first quarter of 2024, compared with a loss of $3.1 million in the same period of 2023.

First Quarter 2024 Financial Results

Total revenues decreased by 51.8% year-over-year to $71.2 million from $147.8 million in the same quarter of 2023. Sales from apparel decreased by 52.7% to $56.4 million in the first quarter of 2024, compared with $119.2 million in the same quarter of 2023.

Total cost of revenues was $29.7 million in the first quarter of 2024, compared with $65.3 million in the same quarter of 2023.

Gross profit in the first quarter of 2024 was $41.4 million, compared with $82.5 million in the same quarter of 2023. Gross margin was 58.2% in the first quarter of 2024, compared with 55.8% in the same quarter of 2023.

Total operating expenses in the first quarter of 2024 were $45.5 million, compared with $86.5 million in the same quarter of 2023.

  • Fulfillment expenses in the first quarter of 2024 were $5.7 million, compared with $8.6 million in the same quarter of 2023. As a percentage of total revenues, fulfillment expenses were 8.1% in the first quarter of 2024, compared with 5.8% in the same quarter of 2023 and 5.9% in the fourth quarter of 2023.
  • Selling and marketing expenses in the first quarter of 2024 were $32.7 million, compared with $69.1 million in the same quarter of 2023. As a percentage of total revenues, selling and marketing expenses were 46.0% in the first quarter of 2024, compared with 46.8% in the same quarter of 2023 and 48.5% in the fourth quarter of 2023.
  • G&A expenses in the first quarter of 2024 were $7.3 million, compared with $9.1 million in the same quarter of 2023. As a percentage of total revenues, G&A expenses were 10.2% in the first quarter of 2024, compared with 6.1% in the same quarter of 2023 and 5.0% in the fourth quarter of 2024. As part of G&A expenses, R&D expenses in the first quarter of 2024 were $4.6 million, compared with $5.2 million in the same quarter of 2023 and $3.6 million in the fourth quarter of 2023.

Loss from operations was $4.0 million in the first quarter of 2024, compared with $4.0 million in the same quarter of 2023.

Net loss was $3.8 million in the first quarter of 2024, compared with $4.0 million in the same quarter of 2023.

Net loss per American Depository Share ("ADS") was $0.03 in the first quarter of 2024, compared with $0.03 in the same quarter of 2023. Each ADS represents two ordinary shares. The diluted net loss per ADS in the first quarter of 2024 was $0.03, compared with $0.03 in the same quarter of 2023.

In the first quarter of 2024, the Company's basic weighted average number of ADSs used in computing the net loss per ADS was 111,388,157.

Adjusted EBITDA was a loss of $3.1 million in the first quarter of 2024, compared with a loss of $3.1 million in the same quarter of 2023.

As of March 31, 2024, the Company had cash and cash equivalents and restricted cash of $30.9 million, compared with $73.6 million as of March 31, 2023.

Share Repurchase Program

On June 27, 2023, the Company's board of directors authorized a share repurchase program under which the Company may repurchase up to $10 million of its ordinary shares in the form of ADSs no later than December 31, 2023. The Company has since extended the share repurchase program through June 30, 2024. As of April 17, 2024, the Company had repurchased 3.2 million ADSs with a total aggregate value of approximately $3.5 million.

Business Outlook

For the second quarter of 2024, based on current information available to the Company and business seasonality, the Company expects net revenues to be between $60 million and $70 million.

Non-GAAP Financial Measure

In evaluating the business, the Company considers and uses a non-GAAP measure, Adjusted EBITDA, as a supplemental measure to review and assess operating performance. The presentation of this non-GAAP financial measure is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP"). The Company's non-GAAP financial measure excludes share-based compensation expenses, depreciation and amortization expenses, interest income, interest expenses and income tax expense.

The Company presents this non-GAAP financial measure because it is used by management to evaluate operating performance and formulate business plans. The Company believes that the non-GAAP financial measure helps identify underlying trends in its business. The Company also believes that the non-GAAP financial measure could provide further information about the Company's results of operations and enhance the overall understanding of the Company's past performance and future prospects.

The non-GAAP financial measure is not defined under U.S. GAAP and is not presented in accordance with U.S. GAAP. The non-GAAP financial measure has limitations as an analytical tool. The Company's non-GAAP financial measure does not reflect all items of income and expenses that affect the Company's operations and does not represent the residual cash flow available for discretionary expenditures. Further, the non-GAAP measure may differ from the non-GAAP information used by other companies, including peer companies, and therefore their comparability may be limited. The Company compensates for the limitations by reconciling the non-GAAP financial measure to the nearest U.S. GAAP performance measure, all of which should be considered when evaluating performance. The Company encourages you to review the Company's financial information in its entirety and not rely on a single financial measure.

For more information on the non-GAAP financial measure, please see the table captioned "Unaudited Reconciliations of GAAP and Non-GAAP Result" set forth at the end of this press release.

Conference Call

The Company's management will hold an earnings conference call at 9:00 a.m. Eastern Time on May 28, 2024 (9:00 p.m. Hong Kong/Singapore Time on the same day).

Preregistration Information

Participants can register for the conference call by going to https://s1.c-conf.com/diamondpass/10039195-64w0b3.html. Upon registration, 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 connected to the conference instantly.

A telephone replay will be available two hours after the conclusion of the conference call through June 4, 2024. The dial-in details are:

US/Canada:

+1-855-883-1031

Singapore:

800-101-3223

Hong Kong, China:

800-930-639

Replay PIN:

10039195

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 an apparel e-commerce retailer that ships products to consumers worldwide. With a focus on serving its middle-aged and senior customers, LightInTheBox leverages its global supply chain and logistics networks, along with its in-house R&D and design capabilities to offer a wide selection of comfortable, aesthetically pleasing and visually interesting apparel that brings fresh joy to customers. LightInTheBox operates its business through www.lightinthebox.com, www.ezbuy.sg and other websites as well as mobile applications, which are available in over 20 major languages and over 140 countries and regions. The Company is headquartered in Singapore, with additional offices in California, Shanghai and Beijing.

For more information, please visit www.lightinthebox.com.

Investor Relations Contact

Investor RelationsLightInTheBox Holding Co., Ltd.Email: ir@lightinthebox.com

Jenny CaiPiacente Financial CommunicationsEmail: lightinthebox@tpg-ir.com

Brandi PiacentePiacente Financial CommunicationsTel: +1-212-481-2050Email: lightinthebox@tpg-ir.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 third 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 March 31,

2023

2024

ASSETS

Current Assets

Cash and cash equivalents

66,425

26,527

Restricted cash

5,279

4,337

Accounts receivable, net of allowance for credit losses

634

733

Inventories

5,767

4,583

Prepaid expenses and other current assets

6,875

9,034

Total current assets

84,980

45,214

Property and equipment, net

2,789

2,471

Intangible assets, net

3,604

3,298

Goodwill

27,393

26,947

Operating lease right-of-use assets

6,559

5,520

Long-term rental deposits

392

356

Other non-current assets

592

1,487

TOTAL ASSETS

126,309

85,293

LIABILITIES AND EQUITY / (DEFICIT)

Current Liabilities

Accounts payable

15,846

13,902

Advance from customers

17,001

15,350

Operating lease liabilities

5,046

4,289

Accrued expenses and other current liabilities

94,622

63,468

Total current liabilities

132,515

97,009

Operating lease liabilities

1,915

1,609

Deferred tax liabilities

154

151

Unrecognized tax benefits

107

107

TOTAL LIABILITIES

134,691

98,876

EQUITY / (DEFICIT)

Ordinary shares

17

17

Additional paid-in capital

283,137

283,361

Treasury shares

(30,359)

(31,193)

Accumulated other comprehensive loss

(1,856)

(2,617)

Accumulated deficit

(259,321)

(263,151)

TOTAL EQUITY / (DEFICIT)

(8,382)

(13,583)

TOTAL LIABILITIES AND EQUITY / (DEFICIT)

126,309

85,293

 

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 March 31,

2023

2024

Revenues

Product sales

144,601

67,831

Services and others

3,180

3,338

Total revenues

147,781

71,169

Cost of revenues

Product sales

(64,176)

(29,070)

Services and others

(1,103)

(650)

Total Cost of revenues

(65,279)

(29,720)

Gross profit

82,502

41,449

Operating expenses

Fulfillment

(8,636)

(5,746)

Selling and marketing

(69,112)

(32,741)

General and administrative

(9,057)

(7,259)

Other operating income

345

286

Total operating expenses

(86,460)

(45,460)

Loss from operations

(3,958)

(4,011)

Interest income

30

70

Interest expense

(1)

-

Other income, net

21

111

Total other income

50

181

Loss before income taxes

(3,908)

(3,830)

Income tax expense

(48)

-

Net loss

(3,956)

(3,830)

Net loss attributable to LightInTheBox Holding Co., Ltd.

(3,956)

(3,830)

Weighted average numbers of shares used in calculating loss per ordinary share

-Basic

226,660,302

222,776,314

-Diluted

226,660,302

222,776,314

Net loss per ordinary share

-Basic

(0.02)

(0.02)

-Diluted

(0.02)

(0.02)

Net loss per ADS (2 ordinary shares equal to 1 ADS)

-Basic

(0.03)

(0.03)

-Diluted

(0.03)

(0.03)

 

LightInTheBox Holding Co., Ltd.

Unaudited Reconciliations of GAAP and Non-GAAP Results

(U.S. dollars in thousands, or otherwise noted)

Three months ended March 31,

2023

2024

Net loss

(3,956)

(3,830)

Less: Interest income

30

70

Interest expense

(1)

-

Income tax expense

(48)

-

Depreciation and amortization

(829)

(626)

EBITDA

(3,108)

(3,274)

Less: Share-based compensation

(5)

(224)

Adjusted EBITDA*

(3,103)

(3,050)

* Adjusted EBITDA represents net loss 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.

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