LightInTheBox Reports Third Quarter 2022 Financial Results


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…



Read More: LightInTheBox Reports Third Quarter 2022 Financial Results

2022-11-25 07:40:00

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