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LightInTheBox Reports Second Quarter 2021 Financial Results

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SHANGHAI, Sept. 7, 2021 /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 second quarter ended June 30, 2021.

Second Quarter and First Half 2021 Financial Highlights



Three Months Ended


Year-over-
Year %

Change


Six Months Ended


Year-over-
Year %

Change


In millions, except percentages


June 30,


June 30,



June 30,


June 30,



2020


2021

2020


2021


Total revenues


$

113.9


$

122.2


7.3%


$

165.4


$

234.2


41.6%


Gross margin


43.5%


46.8%




44.4%


46.7%




Net income


$

8.5


$

9.5


11.6%


$

9.2


$

10.9


17.7%


Adjusted EBITDA


$

9.1


$

14.5


59.0%


$

10.6


$

16.8


59.0%




As of December 31,



As of June 30,




In millions


2020



2021




Cash, cash equivalents and restricted cash


$

65.5



$


58.2
















Mr. Jian He, Chief Executive Officer of LightInTheBox, commented, "During the quarter, we continued to deliver healthy financial results. Total revenues increased to $122.2 million in the second quarter of 2021, compared with $113.9 million in the same quarter of 2020. We are facing more and more players in the highly competitive e-commerce market and the impact of COVID-19 and the resulting macro-economic uncertainties continue to pose challenges in certain overseas markets. In the long term, we believe that we are well positioned to adapt to changes in highly competitive markets by staying on course with our values and going beyond our customers' expectations as a comprehensive and reliable shopping destination."

Second Quarter 2021 Financial Results

Total revenues increased by 7.3% year-over-year to $122.2 million from $113.9 million in the same quarter of 2020. Revenues generated from product sales were $119.3 million, compared with $107.2 million in the same quarter of 2020. Revenues from service and others were $2.9 million, compared with $6.7 million in the same quarter of 2020. Included in product sales, revenues from apparel increased by 149% to $74.0 million in the second quarter of 2021, compared with $29.7 million in the same quarter of 2020.

Total cost of revenues was $65.1 million in the second quarter of 2021, compared with $64.3 million in the same quarter of 2020. Cost for product sales was $64.0 million in the second quarter of 2021, compared with $59.0 million in the same quarter of 2020. Cost for service and others was $1.1 million in the second quarter of 2021, compared with $5.3 million in the same quarter of 2020.

Gross profit in the second quarter of 2021 was $57.1 million, compared with $49.6 million in the same quarter of 2020. Gross margin was 46.8% in the second quarter of 2021, compared with 43.5% in the same quarter of 2020. 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 second quarter of 2021 were $60.6 million, compared with $41.4 million in the same quarter of 2020.

  • Fulfillment expenses in the second quarter of 2021 were $7.6 million, compared with $7.4 million in the same quarter of 2020. As a percentage of total revenues, fulfillment expenses were 6.2% in the second quarter of 2021, compared with 6.5% in the same quarter of 2020 and 6.5% in the first quarter of 2021.

  • Selling and marketing expenses in the second quarter of 2021 were $43.5 million, compared with $26.5 million in the same quarter of 2020. As a percentage of total revenues, selling and marketing expenses were 35.6% for the second quarter of 2021, compared with 23.3% in the same quarter of 2020 and 31.8% in the first quarter of 2021.

  • G&A expenses in the second quarter of 2021 were $9.5 million, compared with $7.5 million in the same quarter of 2020. As a percentage of total revenues, G&A expenses were 7.8% for the second quarter of 2021, compared with 6.6% in the same quarter of 2020 and 7.5% in the first quarter of 2021. Included in G&A expenses, R&D expenses in the second quarter of 2021 were $5.1 million, compared with $3.3 million in the same quarter of 2020 and $4.9 million in the first quarter of 2021.

Loss from operations was $3.5 million in the second quarter of 2021, compared with income from operations of $8.2 million in the same quarter of 2020.

Other income, net in the second quarter of 2021 was $17.2 million, compared with $0.3 million in the same quarter of 2020. 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 income was $9.5 million in the second quarter of 2021, compared with $8.5 million in the same quarter of 2020.

Net income per American Depository Share ("ADS") was $0.08 in the second quarter of 2021, compared with $0.08 in the same quarter of 2020. Each ADS represents two ordinary shares. Diluted net income per ADS was $0.08 in the second quarter of 2021, compared with $0.08 in the same quarter of 2020.

In the second quarter of 2021, the Company's basic weighted average number of ADSs used in computing the net income per ADS was 112,099,326 and the diluted weighted average number of ADSs was 113,372,055.

Adjusted EBITDA, which represents income from operations before share-based compensation expense, interest income, interest expense, income tax expense and depreciation and amortization expenses, was $14.5 million in the second quarter of 2021, compared with $9.1 million in the same quarter of 2020.

As of June 30, 2021, the Company had cash and cash equivalents and restricted cash of $58.2 million, compared with $65.5 million as of December 31, 2020.

First Half 2021 Financial Results

Total revenues increased by 41.6% year-over-year to $234.2 million from $165.4 million in the same half of 2020. Revenues generated from product sales were $228.7 million, compared with $157.2 million in the same half of 2020. Revenues from service and others were $5.5 million, compared with $8.2 million in the same half of 2020. Included in product sales, revenues from apparel increased by 156% to $131.6 million in the first half of 2021, compared with $51.4 million in the same half of 2020.

Total cost of revenues was $124.8 million in the first half of 2021, compared with $91.9 million in the same half of 2020. Cost for product sales was $123.0 million in the first half of 2021, compared with $85.9 million in the same half of 2020. Cost for service and others was $1.8 million in the first half of 2021, compared with $6.0 million in the same half of 2020.

Gross profit in the first half of 2021 was $109.4 million, compared with $73.5 million in the same half of 2020. Gross margin was 46.7% in the first half of 2021, compared with 44.4% in the same half of 2020. 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 2021 were $111.5 million, compared with $68.5 million in the same half of 2020.

  • Fulfillment expenses in the first half of 2021 were $14.9 million, compared with $12.4 million in the same half of 2020. As a percentage of total revenues, fulfillment expenses were 6.3% in the first half of 2021, compared with 7.5% in the same half of 2020.

  • Selling and marketing expenses in the first half of 2021 were $79.1 million, compared with $41.3 million in the same half of 2020. As a percentage of total revenues, selling and marketing expenses were 33.8% for the first half of 2021, compared with 25.0% in the same half of 2020.

  • G&A expenses in the first half of 2021 were $17.9 million, compared with $14.8 million in the same half of 2020. As a percentage of total revenues, G&A expenses were 7.6% for the first half of 2021, compared with 8.9% in the same half of 2020. Included in G&A expenses, R&D expenses in the first half of 2021 were $10.0 million, compared with $6.8 million in the same half of 2020.

Loss from operations was $2.1 million in the first half of 2021, compared with income from operations of $5.0 million in the same half of 2020.

Other income, net was $17.2 million in the first half of 2021, compared with $4.2 million in the same half of 2020. Included in other income, net, change in fair value on our equity investment was $17.1 million in the first half of 2021, compared with $3.8 million in the same half of 2020. The gain in fair value change on our equity investment, after respective income tax of $4.2 million, was $12.9 million in the first half of 2021.

Net income was $10.9 million in the first half of 2021, compared with $9.2 million in the same half of 2020.

Net income per American Depository Share ("ADS") was $0.10 in the first half of 2021, compared with $0.09 in the same half of 2020. Each ADS represents two ordinary shares. The diluted net income per ADS for the first half of 2021 was $0.09, compared with $0.08 in the same half of 2020.

In the first half of 2021, the Company's basic weighted average number of ADSs used in computing the net income per ADS was 112,076,570, and 113,402,531 in diluted weighted average number.

Adjusted EBITDA, which represents income from operations before share-based compensation expense, interest income, interest expense, income tax expense and depreciation and amortization expenses, was $16.8 million in the first half of 2021, compared with $10.6 million in the same half of 2020.

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 7, 2021 (8:00 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/3376424. 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 September 14, 2021. The dial-in details are:

US/Canada:

+1-855-452-5696

Hong Kong:

800-963-117

International:

+61-2-8199-0299

Passcode:

3376424

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 1548
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 June 30,



2020


2021

ASSETS





Current Assets





Cash and cash equivalents


61,477


54,561

Restricted cash


4,052


3,616

Accounts receivable, net of allowance for doubtful accounts


1,302


465

Amounts due from related parties


2,882


2,757

Inventories


9,919


11,541

Prepaid expenses and other current assets


5,176


5,864

Total current assets


84,808


78,804

Property and equipment, net


3,812


3,600

Intangible assets, net


9,416


9,113

Goodwill


29,745


30,053

Operating lease right-of-use assets


12,243


8,996

Long-term rental deposits


707


680

Long-term investments


17,297


34,659

TOTAL ASSETS


158,028


165,905






LIABILITIES AND EQUITY





Current Liabilities





Accounts payable


16,953


13,188

Amounts due to related parties


167


167

Advance from customers


33,279


27,423

Operating lease liabilities


4,269


3,167

Accrued expenses and other current liabilities


42,183


46,576

Total current liabilities


96,851


90,521






Operating lease liabilities


8,118


6,270

Long-term payable


124


100

Deferred tax liability


3,558


7,890

TOTAL LIABILITIES


108,651


104,781






EQUITY





Ordinary shares


17


17

Additional paid-in capital


282,260


282,458

Treasury shares, at cost


(30,207)


(29,992)

Accumulated other comprehensive income


1,795


2,368

Accumulated deficit


(204,571)


(193,971)

Non-controlling interests


83


244

TOTAL EQUITY


49,377


61,124

TOTAL LIABILITIES AND EQUITY


158,028


165,905

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


Six Months Ended




June 30,


June 30,


June 30,


June 30,


2020


2021

2020


2021

Revenues










Product sales


107,235


119,337


157,171


228,759


Services and others


6,643


2,864


8,225


5,489


Total revenues


113,878


122,201


165,396


234,248


Cost of revenues










Product sales


(58,964)


(64,001)


(85,869)


(123,033)


Services and others


(5,364)


(1,051)


(6,076)


(1,808)


Total Cost of revenues


(64,328)


(65,052)


(91,945)


(124,841)


Gross profit


49,550


57,149


73,451


109,407


Operating expenses










Fulfillment


(7,414)


(7,619)


(12,463)


(14,865)


Selling and marketing


(26,499)


(43,531)


(41,279)


(79,122)


General and administrative


(7,517)


(9,494)


(14,785)


(17,910)


Other operating income


59


45


72


408


Total operating expenses


(41,371)


(60,599)


(68,455)


(111,489)


Income / (Loss) from operations


8,179


(3,450)


4,996


(2,082)


Interest income


6


15


53


20


Interest expense


(13)


(4)


(43)


(8)


Other income, net*


301


17,178


4,214


17,209


Total other income


294


17,189


4,224


17,221


Income before income taxes


8,473


13,739


9,220


15,139


Income tax benefit / (expense)


4


(4,282)


1


(4,289)


Net income


8,477


9,457


9,221


10,850


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


(5)


76


118


161


Net income attributable to LightInTheBox Holding Co.,
Ltd.


8,482


9,381


9,103


10,689












Weighted average numbers of shares used in calculating
income per ordinary share










—Basic


223,596,385


224,198,651


214,039,358


224,153,140


—Diluted


223,644,919


226,744,109


223,781,977


226,805,062












Net income per ordinary share










—Basic


0.04


0.04


0.04


0.05


—Diluted


0.04


0.04


0.04


0.05












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










—Basic


0.08


0.08


0.09


0.10


—Diluted


0.08


0.08


0.08


0.09






















*Other income, net mainly includes change in fair value on our equity investment.

LightInTheBox Holding Co., Ltd.

Unaudited Reconciliations of GAAP and Non-GAAP Results

(U.S. dollars in thousands, or otherwise noted)













Three Months Ended


Six Months Ended




June 30,


June 30,


June 30,


June 30,


2020


2021

2020


2021











Net income


8,477


9,457


9,221


10,850












Less: Interest income


6


15


53


20


Interest expense


(13)


(4)


(43)


(8)


Income tax benefit / (expense)


4


(4,282)


1


(4,289)


Depreciation and amortization


(586)


(752)


(1,137)


(1,492)


EBITDA


9,066


14,480


10,347


16,619












Less: Share-based compensation


(80)


(58)


(229)


(198)


Adjusted EBITDA*


9,146


14,538


10,576


16,817






















* Adjusted EBITDA represents income from operations before share-based compensation expense, interest income,
interest expense, income tax expense and depreciation and amortization expenses.

Cision
Cision

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SOURCE LightInTheBox Holding Co., Ltd.