LightInTheBox Reports Fourth Quarter 2018 Financial Results
Fourth Quarter 2018 Highlights
- The Company generated positive cash flow with cash and cash equivalents of
$38.8 million as ofDecember 31, 2018 , a slight increase from$37.5 million as ofSeptember 30, 2018 . - Gross margin improved to 34.6% from 29.7% during the same period last year.
- Loss from operations decreased significantly to
$1.7 million , from$3.6 million in the same period last year.
"I am very pleased with the progress we made during the quarter in integrating ezbuy and
Fourth Quarter 2018 Financial Results
Net revenues decreased 37.2% year-over-year to
Total orders of product sales were 1.3 million for the fourth quarter of 2018, compared with 1.7 million in the same quarter of 2017. Total number of customers for product sales was 1.0 million for the fourth quarter of 2018, compared with 1.4 million in the same quarter of 2017.
Product sales in the apparel category were
Product sales in
With the Company's focus now shifting away from geographic markets and towards generating sales in categories with higher quality products and gross margins, starting during the first quarter of 2019,
Total cost of revenues was
Gross profit for the fourth quarter of 2018 was
Total operating expenses in the fourth quarter of 2018 were
- Fulfillment expenses in the fourth quarter of 2018 were
$3.5 million , compared with$5.0 million in the same quarter of 2017. As a percentage of total net revenues, fulfillment expenses were 6.2% for the fourth quarter of 2018, compared to 5.5% in the same quarter of 2017 and 7.6% in the third quarter of 2018.
- Selling and marketing expenses in the fourth quarter of 2018 were
$11.9 million , compared with$17.8 million in the same quarter of 2017. As a percentage of total net revenues, selling and marketing expenses were 20.5% for the fourth quarter of 2018, compared to 19.4% in the same quarter of 2017 and 25.4% in the third quarter of 2018.
- General and administrative (G&A) expenses in the fourth quarter of 2018 were
$6.2 million , compared with$8.0 million in the same quarter of 2017. As a percentage of total net revenues, G&A expenses were 10.8% for the fourth quarter of 2018, compared with 8.7% in the same quarter of 2017 and 22.7% in the third quarter of 2018. G&A expenses in the fourth quarter of 2018 included$2.2 million in technology investments, compared with$2.7 million in the same quarter of 2017.
Loss from operations was
Net loss was
Net loss per ADS was
For the fourth quarter of 2018, the Company's weighted average number of ADSs used in computing the loss per ADS was 66,692,812.
As of
Full Year 2018 Financial Results
Net revenues decreased 28.9% year-over-year to
Total orders of product sales were 4.9 million for the full year of 2018, compared with 6.7 million in 2017. Total number of customers for product sales was 2.9 million for the full year of 2018, compared with 4.9 million in 2017.
Product sales in the apparel category were
Product sales in
Total cost of revenues was
Gross profit for the full year of 2018 was
Total operating expenses in the full year of 2018 were
- Fulfillment expenses in the full year of 2018 were
$15.1 million , compared with$17.3 million in 2017. As a percentage of total net revenues, fulfillment expenses were 6.6% for the full year of 2018, compared to 5.4% in 2017.
- Selling and marketing expenses in the full year of 2018 were
$50.6 million , compared with$68.9 million in 2017. As a percentage of total net revenues, selling and marketing expenses were 22.2% for the full year of 2018, compared to 21.5% in 2017.
- General and administrative (G&A) expenses in the full year of 2018 were
$33.0 million , compared with$29.6 million in 2017. As a percentage of total net revenues, G&A expenses were 14.5% for the full year of 2018, compared with 9.3% in 2017. G&A expenses in the full year of 2018 included$10.6 million in technology investments, compared with$10.4 million in 2017.
Loss from operations was
Net loss was
Net loss per ADS was
Business outlook
For the first quarter of 2019, based on current information available to the Company and business seasonality, the Company expects net revenues to be between $48 million and
Change in Fair Value of Convertible Promissory Notes Associated with the Acquisition of ezbuy
The Company entered Share Purchase Agreement ("SPA") on
Conference Call
The Company will hold a conference call at
US Toll Free: 1-866-519-4004
Hong Kong Toll Free: 800-906-601
International: +65-6713-5090
Passcode: 3066439
A telephone replay will be available two hours after the conclusion of the conference call through
US: +1-646-254-3697
International: +61-2-8199-0299
Passcode: 3066439
A live and archived webcast of the conference call will be available on the Investor Relations section of
About
For more information, please visit www.lightinthebox.com.
Investor Relations Contact
Christensen
Ms.
Tel: +86 (10) 5900 3429
Email: ir@lightinthebox.com
OR
Christensen
Ms.
Phone: +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 Holding Co., Ltd. |
||||
Unaudited Condensed Consolidated Balance Sheets |
||||
(U.S. dollar in thousands) |
||||
As of December 31, |
As of December 31, |
|||
2017 |
2018 |
|||
ASSETS |
||||
Current Assets |
||||
Cash and cash equivalents |
68,441 |
38,808 |
||
Restricted cash |
1,573 |
994 |
||
Accounts receivable, net of allowance for doubtful |
3,433 |
1,551 |
||
Inventories, net |
11,841 |
8,481 |
||
Prepaid expenses and other current assets |
15,696 |
6,530 |
||
Total current assets |
100,984 |
56,364 |
||
Property and equipment, net |
920 |
3,652 |
||
Acquired intangible assets, net |
210 |
9,890 |
||
Goodwill |
690 |
31,140 |
||
Long-term rental deposit |
671 |
1,131 |
||
Long-term investment |
5,262 |
5,188 |
||
TOTAL ASSETS |
108,737 |
107,365 |
||
LIABILITIES |
||||
Current Liabilities |
||||
Accounts payable |
22,430 |
10,832 |
||
Amounts due to related parties |
- |
4,953 |
||
Convertible promissory note |
- |
51,922 |
||
Advance from customers |
10,110 |
17,732 |
||
Accrued expenses and other current liabilities |
20,727 |
28,630 |
||
Total current liabilities |
53,267 |
114,069 |
||
Long-term payable |
- |
1,156 |
||
Total non-current liabilities |
- |
1,156 |
||
TOTAL LIABILITIES |
53,267 |
115,225 |
||
(DEFICIT) EQUITY |
||||
Ordinary shares |
11 |
11 |
||
Treasury shares, at cost |
(23,907) |
(27,261) |
||
Additional paid-in capital |
238,851 |
239,269 |
||
Accumulated deficit |
(159,286) |
(218,888) |
||
Accumulated other comprehensive loss |
(199) |
(991) |
||
TOTAL (DEFICIT) EQUITY |
55,470 |
(7,860) |
||
TOTAL LIABILITIES AND EQUITY |
108,737 |
107,365 |
||
LightInTheBox Holding Co., Ltd. |
||||||||
Unaudited Condensed Consolidated Statements of Operations |
||||||||
(U.S. dollar in thousands, except share data and per share data) |
||||||||
Three-month Period Ended |
Twelve-month Period Ended |
|||||||
December 31, |
December 31, |
December 31, |
December 31, |
|||||
2017 |
2018 |
2017 |
2018 |
|||||
Net revenues |
||||||||
Product sales |
83,140 |
55,465 |
293,951 |
216,407 |
||||
Services and others |
8,471 |
2,074 |
25,930 |
11,132 |
||||
Total net revenues |
91,611 |
57,539 |
319,881 |
227,539 |
||||
Cost of revenues |
||||||||
Product sales |
(56,665) |
(35,940) |
(189,816) |
(156,326) |
||||
Services and others |
(7,775) |
(1,687) |
(24,445) |
(10,017) |
||||
Total Cost of revenues |
(64,440) |
(37,627) |
(214,261) |
(166,343) |
||||
Gross profit |
27,171 |
19,912 |
105,620 |
61,196 |
||||
Operating expenses |
||||||||
Fulfillment |
(5,028) |
(3,547) |
(17,291) |
(15,127) |
||||
Selling and marketing |
(17,756) |
(11,796) |
(68,891) |
(50,508) |
||||
General and administrative |
(7,978) |
(6,245) |
(29,605) |
(33,042) |
||||
Total operating expenses |
(30,762) |
(21,588) |
(115,787) |
(98,677) |
||||
Loss from operations |
(3,591) |
(1,676) |
(10,167) |
(37,481) |
||||
Exchange gain (loss) on offshore bank accounts |
(46) |
23 |
(89) |
- |
||||
Interest income |
70 |
55 |
581 |
487 |
||||
Interest expense |
- |
(5) |
- |
(5) |
||||
Change in fair value of convertible promissory note |
- |
(22,791) |
- |
(22,791) |
||||
Loss before income taxes |
(3,567) |
(24,394) |
(9,675) |
(59,790) |
||||
Income taxes expenses |
(51) |
(27) |
(81) |
(33) |
||||
Gain from equity method investment |
79 |
24 |
208 |
221 |
||||
Net loss |
(3,539) |
(24,397) |
(9,548) |
(59,602) |
||||
Weighted average numbers of shares used in calculating |
||||||||
—Basic |
137,131,854 |
133,385,624 |
137,641,562 |
133,467,980 |
||||
—Diluted |
137,131,854 |
133,385,624 |
137,641,562 |
133,467,980 |
||||
Net loss per ordinary share |
||||||||
—Basic |
(0.03) |
(0.18) |
(0.07) |
(0.45) |
||||
—Diluted |
(0.03) |
(0.18) |
(0.07) |
(0.45) |
||||
Net loss per ADS (2 ordinary shares equal to 1 ADS) |
||||||||
—Basic |
(0.05) |
(0.36) |
(0.14) |
(0.90) |
||||
—Diluted |
(0.05) |
(0.36) |
(0.14) |
(0.90) |
||||
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