LightInTheBox Reports Third Quarter 2020 Financial Results

BEIJING, Dec. 7, 2020 /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, 2020.

Third Quarter and First Nine Months 2020 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


2019


2020


Change


2019


2020


Change


Total revenues


$

59.9


$

100.0


67.0

%

$

168.9


$

265.4


57.1

%

Gross margin


42.3

%

43.1

%



39.9

%

43.9

%



Net income / (loss)


$

10.0


$

7.3


(26.7)

%

$

(11.4)


$

16.5




Adjusted EBITDA


$

0.5


$

12.7


2372.7

%

$

(6.5)


$

23.3




 



As of December 31,


As of September 30,


In millions


2019


2020


Cash, cash equivalents and restricted cash


$

40.4


$

48.2










Mr. Jian He, Chief Executive Officer of LightInTheBox, commented, "During the quarter, we continued to deliver healthy and stable growth operationally and financially. Total revenues were $100.0 million in the third quarter, compared with $59.9 million in the same quarter of 2019. At the same time, we achieved adjusted EBITDA of $12.7 million and $23.3 million for the third quarter and the first nine months ended September 30, 2020, respectively, in comparison with adjusted EBITDA of $0.5 million and a loss of $6.5 million in the same periods of last year. These results reflect the growing success of our revamped strategy, which is to focus on optimizing product and category mix, enhancing supply chain management and driving customer engagement. Looking ahead, we will continue to execute our growth strategy, further enhance our partnership with key suppliers and improve customer experience within the regions we operate. We are confident that our sound strategy and solid execution positions us well to consistently achieve growth in profit and create long-term value for our shareholders."

Third Quarter 2020 Financial Results

Total revenues increased by 67.0% year-over-year to $100.0 million from $59.9 million in the same quarter of 2019. Revenues generated from product sales were $95.4 million, compared with $58.1 million in the same quarter of 2019. Revenues from service and others were $4.6 million, compared with $1.8 million in the same quarter of 2019.

Total cost of revenues was $56.9 million in the third quarter of 2020, compared with $34.6 million in the same quarter of 2019. Cost for product sales was $53.9 million in the third quarter of 2020, compared with $33.8 million in the same quarter of 2019. Cost for service and others was $3.1 million in the third quarter of 2020, compared with $0.8 million in the same quarter of 2019.

Gross profit in the third quarter of 2020 was $43.1 million, compared with $25.3 million in the same quarter of 2019. Gross margin was 43.1% in the third quarter of 2020, compared with 42.3% in the same quarter of 2019. The increase in gross margin was a result of the Company's continuous efforts to optimize the supply chain and product mix.

Total operating expenses in the third quarter of 2020 were $41.5 million, compared with $25.7 million in the same quarter of 2019.

  • Fulfillment expenses in the third quarter of 2020 were $6.7 million, compared with $6.8 million in the same quarter of 2019. As a percentage of total revenues, fulfillment expenses were 6.7% in the third quarter of 2020, compared with 11.3% in the same quarter of 2019 and 6.5% in the second quarter of 2020.
  • Selling and marketing expenses in the third quarter of 2020 were $26.9 million, compared with $12.4 million in the same quarter of 2019. As a percentage of total revenues, selling and marketing expenses were 26.9% for the third quarter of 2020, compared with 20.8% in the same quarter of 2019 and 23.3% in the second quarter of 2020.
  • G&A expenses in the third quarter of 2020 were $7.9 million, compared with $6.5 million in the same quarter of 2019. As a percentage of total revenues, G&A expenses were 7.9% for the third quarter of 2020, compared with 10.8% in the same quarter of 2019 and 6.6% in the second quarter of 2020. Included in G&A expenses, R&D expenses in the third quarter of 2020 were $3.5 million, compared with $4.9 million in the same quarter of 2019 and $3.3 million in the second quarter of 2020.

Income from operations was $1.6 million in the third quarter of 2020, compared with a loss from operations of $0.4 million in the same quarter of 2019.

Net income was $7.3 million in the third quarter of 2020, compared with $10.0 million in the same quarter of 2019.

Net income per American Depository Share ("ADS") was $0.07 in the third quarter of 2020, compared with $0.15 in the same quarter of 2019. Each ADS represents two ordinary shares. The diluted net income per ADS was $0.07 in the third quarter of 2020, compared with the diluted net loss per ADS of $0.00 in the same quarter of 2019.

In the third quarter of 2020, the Company's basic weighted average number of ADSs used in computing the net income per ADS was 110,299,994 and the diluted weighted average number of ADSs was 111,910,060.

Adjusted EBITDA, which represents a gain / (loss) from operations before share-based compensation expense, change in fair value of convertible promissory notes, interest income, interest expense, income tax expense and depreciation and amortization expenses, was $12.7 million in the third quarter of 2020, compared with $0.5 million in the same quarter of 2019.

As of September 30, 2020, the Company had cash and cash equivalents and restricted cash of $48.2 million, compared with $55.0 million as of June 30, 2020.

First Nine Months 2020 Financial Results

Total revenues increased by 57.1% year-over-year to $265.4 million from $168.9 million in the same months of 2019. Revenues generated from product sales were $252.6 million, compared with $165.0 million in the same months of 2019. Revenues from service and others were $12.8 million, compared with $3.9 million in the same months of 2019.

Total cost of revenues was $148.9 million in the first nine months of 2020, compared with $101.5 million in the same months of 2019. Cost for product sales was $139.7 million in the first nine months of 2020, compared with $100.2 million in the same months of 2019. Cost for service and others was $9.2 million in the first nine months of 2020, compared with $1.3 million in the same months of 2019.

Gross profit in the first nine months of 2020 was $116.5 million, compared with $67.4 million in the same months of 2019. Gross margin was 43.9% in the first nine months of 2020, compared with 39.9% in the same months of 2019. The increase in gross margin was a result of the Company's continuous efforts to optimize the supply chain and product mix.

Total operating expenses in the first nine months of 2020 were $110.0 million, compared with $79.1 million in the same months of 2019.

  • Fulfillment expenses in the first nine months of 2020 were $19.1 million, compared with $16.9 million in the same months of 2019. As a percentage of total revenues, fulfillment expenses were 7.2% in the first nine months of 2020, compared with 10.0% in the same months of 2019.
  • Selling and marketing expenses in the first nine months of 2020 were $68.2 million, compared with $33.2 million in the same months of 2019. As a percentage of total revenues, selling and marketing expenses were 25.7% in the first nine months of 2020, compared with 19.7% in the same months of 2019.
  • G&A expenses in the first nine months of 2020 were $22.7 million, compared with $29.0 million in the same months of 2019. As a percentage of total revenues, G&A expenses were 8.6% in the first nine months of 2020, compared with 17.1% in the same months of 2019. Included in G&A expenses, R&D expenses in the first nine months of 2020 were $10.4 million, compared with $13.2 million in the same months of 2019.

Income from operations was $6.6 million in the first nine months of 2020, compared with loss from operations of $11.7 million in the same months of 2019.

Net income was $16.5 million in the first nine months of 2020, compared with a net loss of $11.4 million in the same months of 2019.

Net income per American Depository Share ("ADS") was $0.15 in the first nine months of 2020, compared with net loss per ADS of $0.17 in the same months of 2019. Each ADS represents two ordinary shares. The diluted net income per ADS for the first nine months of 2020 was $0.15, compared with the diluted net loss per ADS of $0.17 in the same months of 2019.

In the first nine months of 2020, the Company's basic weighted average number of ADSs used in computing the net income per ADS was 108,562,216, and 112,389,708 in diluted weighted average number.

Adjusted EBITDA, which represents a gain / (loss) from operations before share-based compensation expense, change in fair value of convertible promissory notes, interest income, interest expense, income tax expense and depreciation and amortization expenses, was earnings of $23.3 million in the first nine months of 2020, compared with loss of $6.5 million in the same months of 2019.

Business Outlook

For the fourth quarter of 2020, based on current information available to the Company and business seasonality, the Company expects net revenues to be between $120 million and $135 million, which would represent an increase of between 61% and 81% compared with the fourth quarter of 2019.

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 a gain /(loss) from operations before share-based compensation expense, change in fair value of convertible promissory notes, 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, enhancing their understanding of the past performance and future prospects.

Conference Call

The Company will hold a conference call to discuss the results at 8:00 a.m. Eastern Time on December 7, 2020 (9:00 p.m. Beijing Time on the same day).

Preregistration Information

Participants can register for the conference call by navigating to http://apac.directeventreg.com/registration/event/8653739. Once preregistration has been complete, 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 14, 2020. The dial-in details are:

US/Canada:

+1-855-452-5696

Hong Kong:

800-963-117

International:

+61-2-8199-0299

Passcode:

8653739

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.com 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 3429
Email:  ir@lightinthebox.com

OR
Christensen
Ms. Linda Bergkamp
Tel: +1-480-614-3004
Email: lbergkamp@ChristensenIR.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,




2019


2020


ASSETS






Current Assets






Cash and cash equivalents


37,736


45,896


Restricted cash


2,709


2,319


Accounts receivable, net of allowance for doubtful accounts


1,356


1,124


Amounts due from related parties


4,600


2,772


Inventories


7,357


8,221


Prepaid expenses and other current assets


3,619


3,467


Total current assets


57,377


63,799


Property and equipment, net


3,502


3,234


Intangible assets, net


8,516


8,952


Goodwill


27,922


28,613


Operating lease right-of-use assets


12,233


12,329


Long-term rental deposits


778


1,041


Long-term investments


2,873


16,035


TOTAL ASSETS


113,201


134,003








LIABILITIES AND EQUITY






Current Liabilities






Accounts payable


17,643


12,846


Amounts due to related parties


186


167


Advance from customers


21,731


24,842


Operating lease liabilities


3,470


4,013


Accrued expenses and other current liabilities


28,642


31,656


Total current liabilities


71,672


73,524








Operating lease liabilities


8,801


8,375


Long-term payable


847


130


Deferred tax liability



3,272


TOTAL LIABILITIES


81,320


85,301








EQUITY






Ordinary shares


14


17


Additional paid-in capital


262,888


280,409


Forward contracts


15,769



Treasury shares, at cost


(27,512)


(30,207)


Accumulated other comprehensive loss


(1,444)


(212)


Accumulated deficit


(217,888)


(201,379)


Non-controlling interests


54


74


TOTAL EQUITY


31,881


48,702


TOTAL LIABILITIES AND EQUITY


113,201


134,003


 

 

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,




2019


2020


2019


2020


Revenues










Product sales


58,139


95,426


165,039


252,597


Services and others


1,752


4,584


3,867


12,809


Total revenues


59,891


100,010


168,906


265,406


Cost of revenues










Product sales


(33,790)


(53,857)


(100,193)


(139,726)


Services and others


(794)


(3,081)


(1,313)


(9,157)


Total Cost of revenues


(34,584)


(56,938)


(101,506)


(148,883)


Gross profit


25,307


43,072


67,400


116,523


Operating expenses










Fulfillment


(6,763)


(6,661)


(16,934)


(19,124)


Selling and marketing


(12,440)


(26,880)


(33,232)


(68,159)


General and administrative


(6,474)


(7,908)


(28,957)


(22,693)


Other operating income



(56)



16


Total operating expenses


(25,677)


(41,505)


(79,123)


(109,960)


(Loss) / Income from operations


(370)


1,567


(11,723)


6,563


Interest income


49


4


246


57


Interest expense


(13)


(35)


(51)


(78)


Change in fair value of convertible promissory notes


10,347



(1,595)



Other Income,net



8,960



13,174


Total other income / (loss)


10,383


8,929


(1,400)


13,153


Income / (Loss) before income taxes and gain from an equity method
    investment


10,013


10,496


(13,123)


19,716


Income tax expense


(19)


(3,188)


(439)


(3,187)


Gain from an equity method investment


(20)



2,136



Net income / (loss)


9,974


7,308


(11,426)


16,529


Less: Net income / (loss) attributable to non-controlling interests


(138)


(98)


(34)


20


Net income / (loss) attributable to LightInTheBox Holding Co., Ltd.


10,112


7,406


(11,392)


16,509












Weighted average numbers of shares used in calculating income / 

    (loss) per ordinary share










—Basic


134,694,173


220,599,987


134,586,488


217,124,431


—Diluted


223,577,289


223,820,121


134,586,488


224,779,416












Net income / (loss) per ordinary share










—Basic


0.08


0.03


(0.08)


0.08


—Diluted


(0.00)


0.03


(0.08)


0.07












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










—Basic


0.15


0.07


(0.17)


0.15


—Diluted


(0.00)


0.07


(0.17)


0.15


 

 

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,




2019


2020


2019


2020












Net income / (loss)


9,974


7,308


(11,426)


16,529












Less: Interest income


49


4


246


57


Interest expense


(13)


(35)


(51)


(78)


Income tax expense


(19)


(3,188)


(439)


(3,187)


Depreciation and amortization


(598)


(633)


(1,860)


(1,770)


EBITDA


10,555


11,160


(9,322)


21,507












Less: Share-based compensation


(305)


(1,525)


(1,261)


(1,754)


Change in fair value of convertible promissory notes


10,347



(1,595)



Adjusted EBITDA*


513


12,685


(6,466)


23,261



* Adjusted EBITDA represents gain /(loss) from operations before share-based compensation expense, change in fair value of convertible promissory notes, interest income, interest expense, income tax expense and depreciation and amortization expenses.

Cision View original content:http://www.prnewswire.com/news-releases/lightinthebox-reports-third-quarter-2020-financial-results-301187071.html

SOURCE LightInTheBox Holding Co., Ltd.

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