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 June 30, 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 operations was $2.5 million in the second quarter of 2022, compared with $3.5 million in the same quarter of 2021.
Other income, net in 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 June 30, 2022, the Company had cash and cash equivalents and restricted cash of $65.7 million, compared with $59.6 million as of December 31, 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 operations was $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, the Company’s basic weighted average number of ADSs used in computing the net income per ADS was 113,062,096.
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 $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, 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.
Conference Call
The Company will hold a conference call to discuss the results at 8:00 a.m. Eastern Time on September 6, 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.
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