Technology
LightInTheBox Reports Second Quarter 2024 Financial Results
Published
3 months agoon
By
– Returns to Profitability with Net Income of $0.6 Million –
SINGAPORE, Aug. 2, 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 second quarter ended June 30, 2024.
“The second quarter of 2024 was a challenging one, with intensified competition and high traffic acquisition costs in the global e-commerce market continuing to weigh on our topline,” said Mr. Jian He, Chairman and CEO of LightInTheBox. “However, our strategic pivot to prioritize profitability proved effective, resulting in a turnaround with net income reaching $0.6 million for the second quarter of 2024 compared with a loss for the same period of last year and the first quarter of this year. Meanwhile, we continued to refine our differentiation strategy with a focus on strengthening localized operations, propelling progress in certain product lines.”
“Encouraged by the outcomes of these initiatives, we will continue to concentrate on overall efficiency and profitability amid the evolving environment. Additionally, we will further upgrade our products, services and customer experience, as well as our localized operations, to differentiate ourselves and build brand recognition and loyalty in this competitive industry. As always, we are committed to driving high-quality development and delivering sustainable value to all stakeholders in the long run,” Mr. He concluded.
Second Quarter 2024 Financial Highlights
Total revenues were $69.4 million in the second quarter of 2024, compared with $191.8 million in the same period of 2023.Net income was $0.6 million in the second quarter of 2024, compared with net loss of $1.5 million in the same period of 2023.Adjusted EBITDA was an income of $1.2 million in the second quarter of 2024, compared with a loss of $0.7 million in the same period of 2023.
First Half 2024 Financial Highlights
Total revenues were $140.5 million in the first half of 2024, compared with $339.5 million in the same period of 2023.Net loss was $3.2 million in the first half of 2024, compared with $5.4 million in the same period of 2023.Adjusted EBITDA was a loss of $1.9 million in the first half of 2024, compared with $3.8 million in the same period of 2023.
Second Quarter 2024 Financial Results
Total revenues decreased by 63.8% year-over-year to $69.4 million from $191.8 million in the same quarter of 2023.
Total cost of revenues was $26.1 million in the second quarter of 2024, compared with $81.6 million in the same quarter of 2023.
Gross profit in the second quarter of 2024 was $43.3 million, compared with $110.2 million in the same quarter of 2023. Gross margin was 62.4% in the second quarter of 2024, compared with 57.5% in the same quarter of 2023.
Total operating expenses in the second quarter of 2024 were $42.7 million, compared with $111.8 million in the same quarter of 2023.
Fulfillment expenses in the second quarter of 2024 were $5.0 million, compared with $9.9 million in the same quarter of 2023. As a percentage of total revenues, fulfillment expenses were 7.2% in the second quarter of 2024, compared with 5.2% in the same quarter of 2023 and 8.1% in the first quarter of 2024.
Selling and marketing expenses in the second quarter of 2024 were $31.5 million, compared with $94.0 million in the same quarter of 2023. As a percentage of total revenues, selling and marketing expenses were 45.5% in the second quarter of 2024, compared with 49.0% in the same quarter of 2023 and 46.0% in the first quarter of 2024.
G&A expenses in the second quarter of 2024 were $6.4 million, compared with $8.2 million in the same quarter of 2023. As a percentage of total revenues, G&A expenses were 9.2% in the second quarter of 2024, compared with 4.3% in the same quarter of 2023 and 10.2% in the first quarter of 2024. As part of G&A expenses, R&D expenses in the second quarter of 2024 were $4.0 million, compared with $5.1 million in the same quarter of 2023 and $4.6 million in the first quarter of 2024.
Income from operations was $0.6 million in the second quarter of 2024, compared with a loss of $1.6 million in the same quarter of 2023.
Net income was $0.6 million in the second quarter of 2024, compared with a loss of $1.5 million in the same quarter of 2023.
Net income per American Depository Share (“ADS”) was $0.01 in the second quarter of 2024, compared with net loss per ADS of $0.01 in the same quarter of 2023. Each ADS represents two ordinary shares. The diluted net income per ADS in the second quarter of 2024 was $0.01, compared with net loss per ADS of $0.01 in the same quarter of 2023.
In the second quarter of 2024, the Company’s basic weighted average number of ADSs used in computing the net income per ADS was 110,342,430.
Adjusted EBITDA was an income of $1.2 million in the second quarter of 2024, compared with a loss of $0.7 million in the same quarter of 2023.
As of June 30, 2024, the Company had cash and cash equivalents and restricted cash of $27.9 million, compared with $71.7 million as of December 31, 2023.
First Half 2024 Financial Results
Total revenues decreased by 58.6% year-over-year to $140.5 million from $339.5 million in the same period of 2023.
Total cost of revenues was $55.8 million in the first half of 2024, compared with $146.9 million in the same period of 2023.
Gross profit in the first half of 2024 was $84.7 million, compared with $192.7 million in the same period of 2023. Gross margin was 60.3% in the first half of 2024, compared with 56.7% in the same period of 2023.
Total operating expenses in the first half of 2024 were $88.1 million, compared with $198.2 million in the same period of 2023.
Fulfillment expenses in the first half of 2024 were $10.8 million, compared with $18.5 million in the same period of 2023. As a percentage of total revenues, fulfillment expenses were 7.7% in the first half of 2024, compared with 5.5% in the same period of 2023.
Selling and marketing expenses in the first half of 2024 were $64.3 million, compared with $163.2 million in the same period of 2023. As a percentage of total revenues, selling and marketing expenses were 45.7% for the first half of 2024, compared with 48.0% in the same period of 2023.
G&A expenses in the first half of 2024 were $13.7 million, compared with $17.2 million in the same period of 2023. As a percentage of total revenues, G&A expenses were 9.7% for the first half of 2024, compared with 5.1% in the same period of 2023. Included in G&A expenses, R&D expenses in the first half of 2024 were $8.6 million, compared with $10.3 million in the same period of 2023.
Loss from operations was $3.4 million in the first half of 2024, compared with $5.6 million in the same period of 2023.
Net loss was $3.2 million in the first half of 2024, compared with $5.4 million in the same period of 2023.
Net loss per American Depository Share (“ADS”) was $0.03 in the first half of 2024, compared with $0.05 in the same period of 2023. Each ADS represents two ordinary shares. The diluted net loss per ADS for the first half of 2024 was $0.03, compared with $0.05 in the same period of 2023.
In the first half of 2024, the Company’s basic weighted average number of ADSs used in computing the net loss per ADS was 110,802,352.
Adjusted EBITDA was a loss of $1.9 million in the first half of 2024, compared with $3.8 million in the same period of 2023.
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 Results” 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 August 2, 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/10040986-jh7t5r.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 August 9, 2024. The dial-in details are:
US/Canada: +1-855-883-1031
Singapore: 800-101-3223
Hong Kong, China: 800-930-639
Replay PIN: 10040986
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 Relations
LightInTheBox Holding Co., Ltd.
Email: ir@lightinthebox.com
Jenny Cai
Piacente Financial Communications
Email: lightinthebox@tpg-ir.com
Brandi Piacente
Piacente Financial Communications
Tel: +1-212-481-2050
Email: 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 June 30,
2023
2024
ASSETS
Current Assets
Cash and cash equivalents
66,425
25,287
Restricted cash
5,279
2,624
Accounts receivable, net of allowance for credit losses
634
994
Inventories
5,767
4,480
Prepaid expenses and other current assets
6,875
9,098
Total current assets
84,980
42,483
Property and equipment, net
2,789
2,145
Intangible assets, net
3,604
3,089
Goodwill
27,393
26,778
Operating lease right-of-use assets
6,559
6,934
Long-term rental deposits
392
312
Long-term investment
–
74
Other non-current assets
592
–
TOTAL ASSETS
126,309
81,815
LIABILITIES AND EQUITY / (DEFICIT)
Current Liabilities
Accounts payable
15,846
14,227
Advance from customers
17,001
13,258
Operating lease liabilities
5,046
4,049
Accrued expenses and other current liabilities
94,622
61,891
Total current liabilities
132,515
93,425
Operating lease liabilities
1,915
1,650
Deferred tax liabilities
154
150
Unrecognized tax benefits
107
107
TOTAL LIABILITIES
134,691
95,332
EQUITY / (DEFICIT)
Ordinary shares
17
17
Additional paid-in capital
283,137
282,862
Treasury shares
(30,359)
(31,045)
Accumulated other comprehensive loss
(1,856)
(2,823)
Accumulated deficit
(259,321)
(262,528)
TOTAL EQUITY / (DEFICIT)
(8,382)
(13,517)
TOTAL LIABILITIES AND EQUITY / (DEFICIT)
126,309
81,815
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 June 30,
Six Months Ended June 30,
2023
2024
2023
2024
Revenues
Product sales
189,730
67,152
334,331
134,983
Services and others
2,037
2,210
5,217
5,548
Total revenues
191,767
69,362
339,548
140,531
Cost of revenues
Product sales
(81,142)
(25,513)
(145,318)
(54,583)
Services and others
(435)
(559)
(1,538)
(1,209)
Total Cost of revenues
(81,577)
(26,072)
(146,856)
(55,792)
Gross profit
110,190
43,290
192,692
84,739
Operating expenses
Fulfillment
(9,906)
(5,010)
(18,542)
(10,756)
Selling and marketing
(94,038)
(31,527)
(163,150)
(64,268)
General and administrative
(8,176)
(6,411)
(17,233)
(13,670)
Other operating income
332
277
677
563
Total operating expenses
(111,788)
(42,671)
(198,248)
(88,131)
(Loss) / income from operations
(1,598)
619
(5,556)
(3,392)
Interest income
143
14
173
84
Interest expense
(1)
–
(2)
–
Other (expense) / income, net
(1)
(9)
20
102
Total other income
141
5
191
186
(Loss) / income before income taxes
(1,457)
624
(5,365)
(3,206)
Income tax expense
–
(1)
(48)
(1)
Net (loss) / income
(1,457)
623
(5,413)
(3,207)
Net (loss) / income attributable to
LightInTheBox Holding Co., Ltd.
(1,457)
623
(5,413)
(3,207)
Weighted average numbers of shares used in
calculating (loss) / income per ordinary share
-Basic
226,738,924
220,684,859
226,699,828
221,604,704
-Diluted
226,738,924
221,451,741
226,699,828
221,604,704
Net (loss) / income per ordinary share
-Basic
(0.01)
0.00
(0.02)
(0.01)
-Diluted
(0.01)
0.00
(0.02)
(0.01)
Net (loss) / income per ADS (2 ordinary
shares equal to 1 ADS)
-Basic
(0.01)
0.01
(0.05)
(0.03)
-Diluted
(0.01)
0.01
(0.05)
(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 June 30,
Six Months Ended June 30,
2023
2024
2023
2024
Net (loss) / income
(1,457)
623
(5,413)
(3,207)
Less: Interest income
143
14
173
84
Interest expense
(1)
–
(2)
–
Income tax expense
–
(1)
(48)
(1)
Depreciation and amortization
(826)
(521)
(1,655)
(1,147)
EBITDA
(773)
1,131
(3,881)
(2,143)
Less: Share-based compensation
(78)
(52)
(83)
(276)
Adjusted EBITDA*
(695)
1,183
(3,798)
(1,867)
* Adjusted EBITDA represents net (loss) / income before share-based compensation expense, interest income, interest
expense, income tax expense and depreciation and amortization expenses.
View original content:https://www.prnewswire.com/news-releases/lightinthebox-reports-second-quarter-2024-financial-results-302213370.html
SOURCE LightInTheBox Holding Co., Ltd.
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Global Times: Illuminate roof of ‘Beautiful China’: Solar-powered rooftops transform countryside environments, boost rural revitalization efforts
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For the residents of the village, installing rooftop solar systems and earning money from sunlight has now become a source of joy. “Because when you look up, you can see your own roof, and it reminds you of the abundant harvest you have,” Zhang said.
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Since 2018, Zhang’s family has been renting the 54-square-meter rooftop to the power company, and the annual rental fee has increased from 300 yuan to 480 yuan as the power station has gradually entered a stable operating phase.
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“Simply retrofit the vacant roof, there will be a stable and long-term additional benefit. The manufacturers cooperating with the government will regularly send personnel to maintain, and regularly update the equipment, thus we have nothing to worry about,” Ha said.
Comfort life out of mountains
Zhang jokingly remarked that rooftop solar power generation has allowed the Yuanlong’s villagers to truly transition from a weather-dependent life to “making money from the weather.”
The over 10,000 villagers in Yuanlong were moved from another village – Xihaigu in 2012, which is a largely mountainous region that was labeled the “most unfit place for human settlement” by the United Nations in the 1970s due to land reclamation, drought, and a fragile ecological environment.
Ha recalled his childhood living in the village hidden in the folds of the mountains, where every household was plunged into darkness at night.
Over the past 40 years, Ningxia launched six large-scale resettlement schemes, moving some 1.23 million people from Xihaigu to more habitable areas. The relocation was part of the poverty alleviation drive, fulfilling many villagers’ desire for a comfortable life out of the mountains.
Having escaped the vicious cycle of ecological and survival crises, what kind of life and development path did the villagers of Xihaigu choose in their new homes?
Yuanlong village is one of the villages that has benefited early from the income generated by photovoltaic power stations. Ha was among the first residents to install solar panels on roof.
Initially, Ha’s personal experience with the five photovoltaic panels installed on his roof was simply that they provided shade on sunny days, and made the roof less prone to leaks on rainy days. As more households in the village adopted the solar rooftops, Ha witnessed a profound improvement in the living conditions of the villagers, along with an increase in their income.
As of November 2020, China had achieved the feat of delisting all 832 poverty-stricken counties. The development of photovoltaic power stations, as a typical model of industrial poverty alleviation, has contributed to this historic achievement.
According to China’s National Energy Administration, by the end of 2020, China had built photovoltaic power stations with a combined capacity of 26.36 million kilowatts, generating approximately 18 billion yuan in annual electricity revenue, and creating 1.25 million public welfare jobs.
When this clean, low-carbon, safe, and efficient energy enters the homes of ordinary people, it not only provides shelter through new types of rooftops for families, but also supports more Chinese people in achieving a moderately prosperous life. Many residents have come to realize that their choices contribute to the country’s energy conservation and emission reduction efforts.
They want to do even more.
“When I was a child, there was no electricity in my home, but now we can even produce electricity at home. In our village, people prefers to buy new energy vehicles. Waste sorting has become a habit for the villagers,” Ha said.
“When we go out traveling, the children can immediately ‘capture’ solar panels everywhere. They are also very happy to see that more and more villages began to install solar rooftops just like us,” Zhang added.
Green electricity town
Facing the changes in life, as an official of the Yuanlong village, Zhang’s focus has gradually shifted from the land owned by villagers to the cattle and sheep they raise, and the job opportunities available to them. Now, she is also gradually learning to consider all these key aspects within the context of the new era of development she is in.
Whenever representatives from enterprises and communities visit Yuanlong village, Zhang highlights the embroidery skills of the local women and the solar roofs they have.
One of Zhang’s proudest achievements this year has been helping to showcase and sell the village women’s embroidered crafts to a power supply company in Fuzhou, East China’s Fujian Province. She is very proud that this “green collaboration” has broken through regional limitations, built more bridges for communication between her village and the outside world, and empowered the development of local women.
With the official launch of the “green electricity town” project in Minning town in August 2023, which aims to create a new type of system demonstration area powered entirely by clean energy 24 hours a day, the project is expected to reduce carbon emissions by 48,000 tons annually once completed.
Zhang believes that the villagers in Yuanlong will have more opportunities to showcase their talents and felt gratified that she is living in a country that pays more attention to protecting the ecological environment.
At a national conference on ecological and environmental protection held in July 2023, Chinese President Xi Jinping has stressed efforts to promote the building of a Beautiful China in all respects and accelerate the advancement of modernization featuring harmony between human and nature.
The next five years is a crucial period for building a Beautiful China, which should be placed in a prominent position in building a great modern socialist country in all respects and advancing national rejuvenation, Xi said.
The country should support high-quality development with a high-quality ecological environment and promote the modernization featuring the harmonious co-existence between human and nature, he noted.
Looking up at her rooftop, Zhang eagerly awaits the completion of the “green electricity town.” She hopes it will build a stronger bridge connecting the common people’s dream of a better life with the country’s plans for emission reduction and energy conservation, leading to a more “Beautiful China.”
https://www.globaltimes.cn/page/202411/1323101.shtml
View original content:https://www.prnewswire.com/news-releases/global-times-illuminate-roof-of-beautiful-china-solar-powered-rooftops-transform-countryside-environments-boost-rural-revitalization-efforts-302306546.html
SOURCE Global Times
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