Fri. Jan 24th, 2020

LightInTheBox Holding Co., Ltd. (NYSE: LITB)

35 min read

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, released its unaudited financial results for the 3rd-quarter finished September 30, 2k19.

3rd-Quarter 2k19 Highlights

  • Total revenues regained significant growth momentum increasing 34.60 percent year-over-year to $59.90M.
  • Gross margin improved to 42.30 percent from 15.10 percent in the similar quarter of 2k18.
  • Net income was $10.00M, compared with a net loss of $17.80M in the similar quarter of 2k18.
  • Adjusted EBITDA[1] improved significantly, increasing to earnings of $0.50M, compared with a loss of $17.30M in the similar quarter of 2k18.

 

3rd-Quarter 2k19 Fiscal Results

Total revenues inclined by 34.60 percent year-over-year to $59.90M from $44.50M in the similar quarter of 2k18. Revenues generated from product sales were $58.10M, compared with $42.90M in the similar quarter of 2k18. Revenues from service and others were $1.80M, compared with $1.60M in the similar quarter of 2k18.

The number of orders for product sales was 1.40M in the 3rd-quarter of 2k19, compared with 0.80M in the similar quarter of 2k18. The number of customers for product sales was 0.80M for the 3rd-quarter of 2k19, compared with 0.70M in the similar quarter of 2k18.

Revenues generated from product sales in the apparel category were $20.30M in the 3rd-quarter of 2k19, compared with $14.40M in the similar quarter of 2k18. As a percentage of product sales, apparel revenues accounted for 34.90 percent in the 3rd-quarter of 2k19, compared with 33.60 percent in the similar quarter of 2k18. Revenues generated from product sales from other general merchandise were $37.80M in the 3rd-quarter of 2k19.

The total cost of revenues was $34.60M in the 3rd-quarter of 2k19, compared with $37.80M in the similar quarter of 2k18. The cost for product sales was $33.80M in the 3rd-quarter of 2k19, compared with $36.30M in the similar quarter of 2k18. The cost for service and others was $0.80M in the 3rd-quarter of 2k19, compared with $1.40M in a similar quarter of 2k18.

Gross profit in the 3rd-quarter of 2k19 was $25.30M, compared with $6.70M in the similar quarter of 2k18. Gross margin was 42.30 percent in the 3rd-quarter of 2k19, compared with 15.10 percent in the similar quarter of 2k18. The incline in gross margin was a result of our continuous efforts to drive revenues from categories with a high margin.

Total operating costs in the 3rd-quarter of 2k19 were $25.70M, compared with $24.80M in the similar quarter of 2k18.

  • Fulfillment costs in the 3rd-quarter of 2k19 were $6.80M, compared with $3.40M in the similar quarter of 2k18. As a percentage of total revenues, fulfillment costs were 11.30 percent in the 3rd-quarter of 2k19, compared to 7.60 percent in the similar quarter of 2k18 and 8.40 percent in the 2nd-quarter of 2k19.
  • Selling and marketing costs in the 3rd-quarter of 2k19 were $12.40M, compared with $11.30M in the similar quarter of 2k18. As a percentage of total revenues, selling and marketing costs were 20.80 percent for the 3rd-quarter of 2k19, compared to 25.40 percent in the similar quarter of 2k18 and 19.80 percent in the 2nd-quarter of 2k19.
  • G&A costs in the 3rd-quarter of 2k19 were $1.60M, compared with $7.50M in the similar quarter of 2k18. As a percentage of total revenues, G&A costs were 2.60 percent for the 3rd-quarter of 2k19, compared with 16.90 percent in the similar quarter of 2k18 and 11.00 percent in the 2nd-quarter of 2k19.
  • R&D costs in the 3rd-quarter of 2k19 were $4.90M, compared with $2.50M in the similar quarter of 2k18. As a percentage of total revenues, R&D costs represented 8.20 percent for the 3rd-quarter of 2k19, compared with 5.70 percent in the similar quarter of 2k18 and 7.10 percent in the 2nd-quarter of 2k19.

Loss from operations was $0.40M in the 3rd-quarter of 2k19, compared with $18.10M in the similar quarter of 2k18.

Net income was $10.00M in the 3rd-quarter of 2k19, compared with a net loss of $17.80M in the similar quarter of 2k18. The net income as a result of the change in the fair value of the convertible promissory notes associated with the acquisition of Ezbuy in the 3rd-quarter of 2k19 was $10.30M.

Net income for each American Depositary Share (“ADS”) was $0.15 in the 3rd-quarter of 2k19, compared with a net loss for each ADS of $0.270 in the similar quarter of 2k18. Each ADS represents two ordinary shares. The diluted net loss for each ADS in the 3rd-quarter of 2k19 was $0.0 and $0.270 in the similar quarter of 2k18.

In the 3rd-quarter of 2k19, the Company’s basic weighted average number of ADSs used in computing the income for each ADS was 67,347,087, and 111,788,645 ADSs in diluted weighted average number.

Adjusted EBITDA, which represents gain /(loss) from operations before share-based compensation cost, change in fair value of convertible promissory notes, interest income, interest cost, income tax cost and depreciation and amortization costs, was $0.50M of earning in the 3rd-quarter of 2k19, compared with $17.30M of loss in the similar quarter of 2k18.

As of September 30, 2k19, the Company had cash and cash equivalents and restricted cash of $29.70M, compared with $29.40M as of June 30, 2k19.

Business Outlook

For the 4th-quarter of 2k19, based on current information available to the Company and business seasonality, the Company expects net revenues to be between $71.00M and $75.00M.

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