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.