LightInTheBox Q4 2023 Earnings Call Transcript

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Provided by Quartr
March 25, 2024

There are 4 speakers on the call.

Operator

Hello, ladies and gentlemen. Thank you for standing by for Live in the Box's 4th Quarter and Full Year 2023 Earnings Conference Call. At this time, participants are in listen only mode. After management's prepared remarks, there will be a question and answer session. Today's conference call is being recorded.

Operator

I will now turn the conference call over to your host, Ms. Jenny Cai. Please go ahead, Jenny.

Speaker 1

Thank you, operator. Hello, everyone, and welcome to Lightinthebox 4th quarter and full year 2023 earnings conference call. The company's earnings results were released via newswire services earlier today and are available on the company's IR website atir.lightinthebox.com. On the call from LightInTheBox today are Mr. Jian He, Chairman and CEO Ms.

Speaker 1

Yanjun Ye, Chief Financial Officer and Ms. Wenyu Liu, Chief Growth Officer. Mr. He will provide an overview of the company's strategies and recent developments, followed by Ms. Ye, who will go over its financial results.

Speaker 1

Following our prepared remarks, we'll open the call to questions. Before we proceed, please note that today's discussion may contain forward looking statements made under the Safe Harbor provisions of the U. S. Private Securities Litigation Reform Act of 1995. These forward looking statements are subject to risks and uncertainties that may cause actual results to differ materially from the company's current expectations.

Speaker 1

To understand factors that could cause results to materially differ from those in forward looking statements, please refer to the company's Form 20 F filed with the Securities and Exchange Commission. The company does not assume any obligation to update any forward looking statements, except as required under applicable law. Please also note that BlackInTheBox earnings press release and this conference call include discussions of unaudited GAAP financial measures as well as unaudited non GAAP financial measures. Please refer to the company's earnings press release, which contains a reconciliation of the unaudited non GAAP measures to the unaudited GAAP measures. Now I'd like to turn the call over to Light in the Box Chairman and CEO, Mr.

Speaker 1

He. Please go ahead.

Speaker 2

Good morning and good evening, everyone. Thank you for joining our Q4 and full year 2023 earnings conference call today. In 2023, as we strategically focused on high quality development, we delivered housing results and the challenging macro environment and increasingly competitive landscape. Notably, our full year revenue reached RMB629 1,000,000, up 25% year over year. Apparel remained our strategically core category and drive our sales, accounting for over 80% of total revenues.

Speaker 2

Thanks to our continuous efforts and the investment in our technologies and data analysis capabilities, we gained a great understanding of evolving contribution patterns, enabling us to better align our products, services and marketing strategies with consumer preference and demands. More encouragingly, we are able to improve our profitability with our full year adjusted EBITDA loss, centering by 30 4% year over year to RMB6.3 million. Heading into 2024, we are seeing an evolving operating environment and increasingly sales industry competition. To navigate this market dynamics, video plays a greater emphasis on enhancing customer experience and holding our localized operations in key markets such as the United States to bring high quality on trend offering to more customers worldwide. Meanwhile, we will continue strengthening our brand awareness and visibility to attract organic traffic from potential customers, increase marketing efficiency and improve the brand's overall competitiveness.

Speaker 2

As always, we are committed to pursue healthy sustainable development and delivering value for our shareholders in the long run. With that, I'd now hand the call over to Yanjun to go through our financial results.

Speaker 3

Thank you, Mr. He. Good morning and good evening, everyone. Before we start the detailed discussion of our financials, please note that unless otherwise stated, all the financials we present today are in U. S.

Speaker 3

Dollar terms. Now let me start with our financial highlights for the quarter. In the Q4, our total revenues decreased by 13% year over year to 136,000,000 dollars Revenues from apparel decreased by 12% year over year to 109,000,000 representing 80% of our total revenues compared with 79% in the same quarter of 2022. Gross margin was 56% in the 4th quarter compared with 54% a year ago, due to an increase in apparel sales as a percentage of revenue. Our total operating expenses decreased by 10% year over year to $80,000,000 compared with $89,000,000 in the same period of last year.

Speaker 3

The decrease was mainly due to our ongoing efforts to enhance our operational efficiency. Net loss was $4,300,000 compared with $48,300,000 in the same quarter of 2022. The difference was primarily due to a one time impairment charge in the Q4 of 2022. Now let me walk you through our 2023 full year financials. Total revenues reached 629 $1,000,000 an increase of 25% year over year from $504,000,000 in 2022.

Speaker 3

Revenues from apparel increased by 30 percent to $518,000,000 in 2023 compared with $400,000,000 in 2022 and represented 82% of total revenues in 2023 compared with $79,000,000 in 2022. Total operating expenses were $370,000,000 compared with $289,000,000 in 20 20 2, primarily due to expenditures on marketing expenses. Consumer expenses and G and A expenses were 5.5% and 5.4% of total revenues, respectively, both representing percentage decreases from the same period last year. Net loss was $9,600,000 compared with 56 $600,000,000 in 2022. Moving to the guidance for the Q1 of 2024.

Speaker 3

Based on information currently available and business seasonality, we expect net revenues to be between 70,000,000 dollars $80,000,000 This concludes our prepared remarks. We'll be happy to take some questions now. Operator, please continue.

Operator

Thank We are showing no questions. I'd like to turn the call back over to the company for closing remarks.

Speaker 1

Thank you once again for joining us today. If you have further questions, please feel free to contact Light in the Box Investor Relations through the contact information provided on our website or Piantente Financial Communications. Have a great day.

Operator

That does conclude our conference for today. Thank you for participating. You may now disconnect.

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Earnings Conference Call
LightInTheBox Q4 2023
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