LightInTheBox Q2 2024 Earnings Call Transcript

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Provided by Quartr
August 2, 2024

There are 4 speakers on the call.

Operator

Hello, ladies and gentlemen. Thank you for standing by for Light in the Box's Second Quarter 2024 Earnings Conference Call. At this time, all 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 call over to your host, Ms. Jenny Cai. Please go ahead, Jenny.

Speaker 1

Thank you, operator. Hello, everyone, and welcome to Black in the Box's Q2 2024 Earnings Conference Call. The company's earnings results were released via Newswire services earlier today and are available on the company's IR website at ir.lightinthebox.com. On the call from Lightinthebox today are Mr. Jian He, Chairman and CEO Ms.

Speaker 1

Yuanjun 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. Yeh, 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 the 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 Slide in the Box's 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 LightInTheBox Chairman and CEO, Mr.

Speaker 1

He. Please go ahead.

Speaker 2

Good morning and good evening, everyone. Thank you for joining our Q2 2024 earnings conference call today. The Q2 of 2024 was a challenging one with intensified competition and high traffic acquisition costs in the global e commerce market continuing to weigh on our top line. However, the strategic adjustments we made to prioritize profitability in the Q1 proved effective, resulting in a net income of 600,000 dollars for the Q2 of 2024. A tenant around flat net loss from the same period of last year and in the Q1 of this year.

Speaker 2

We are pleased to see our determination, discipline and the strong execution paying off in our bottom line performance. And we remain agile amid the modern competitive environment to sustain this momentum and drive high quality development. Meanwhile, we continue to proactively elevate our product quality and refine our differential strategy. Our strategical focus remained on strengthening our localized operation in key markets to precisely identify our target customers, better define the competitive advantages and explore potential breakthrough trends. As we strict to strengthen our brand values and cultivate a loyal customer base.

Speaker 2

We are making progress with certain product lines and we are updating you on further development in due course. We are encouraged by the results of our profitability and product optimization initiatives thus far. And we intend to double down on these core strategies in light of the dynamic global market. Operational efficiency and profitability enhancement will remain our top priorities in the near to mid term. At the same time, we will expand our efforts to upgrade our products, services and the customer experience as well as our localized operations to differentiate our sales and to build brand recognition and loyalty.

Speaker 2

As always, we are committed to driving high quality development and delivering sustainable long term value to all stakeholders. With that, I'd now hand over 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 a 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 share our financial performance for the quarter. In the Q2, our total revenues decreased by 64% year over year to $69,000,000 primarily due to the intense competition in the global e commerce industry. Our gross profit in the Q2 of 2024 was $43,000,000 dollars compared with $110,000,000 in the same quarter of last year, in line with the decrease in sales. However, our gross margin improved to 62.4% this quarter from 57.5 percent in the same period last year, mainly driven by our well received product upgrades and supply chain advantages.

Speaker 3

Our total operating expenses decreased by 62% year over year to 43,000,000 dollars versus $112,000,000 in the same period of last year. The decrease was mainly attributable to the decrease in revenue while also benefiting from our efforts to enhance overall operational efficiency. Specifically, fulfillment expenses decreased by 49 percent year over year to $5,000,000 Selling and marketing expenses decreased by 66% year over year to 32,000,000 dollars G and A expenses decreased by 22% year over year to 6,000,000 dollars As part of G and A expenses, R and D expenses in the Q2 of 2024 were 4,000,000 compared with $5,000,000 in the same quarter of last year. We maintain our investment in R and D at a relatively high level as we view R and D and AR AI as essential for advancing product differentiation and operational efficiencies. Moving to our bottom line.

Speaker 3

We turned profitable in the 2nd quarter. We recorded net income of $600,000 compared with a loss of $1,500,000 in the same quarter of last year. Our adjusted EBITDA was an income of $1,200,000 compared with a loss of $700,000 in the Q2 of 2023. Profitability was mainly attributable to the gross margin improvement, which in turn was driven by our product upgrades and dedicated cost management efforts. Looking ahead, we will continue to execute our enhanced profitability strategy, while also further refining our products and customer services.

Speaker 3

This concludes our prepared remarks. We'll be happy to take some questions now. Operator, please continue.

Operator

Thank As there are no questions now, 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 LightInTheBox's Investor Relations through the contact information provided on our website or PN20 Financial Communications. Have a great day.

Speaker 3

Thank you.

Operator

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

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Earnings Conference Call
LightInTheBox Q2 2024
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