LightInTheBox Holding Co., Ltd. (LITB) Q2 2024 Earnings Call Transcript
Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
Overview
The earnings call shows mixed signals. While the company achieved profitability and improved gross margins, the significant revenue decline due to intense competition is concerning. Operational efficiency has improved, but the high costs of traffic acquisition remain a challenge. The share repurchase is a positive sign, yet the market's competitive nature and unclear management responses in the Q&A may temper investor enthusiasm. Without market cap details, a neutral stock price movement is anticipated.
Key Financial Performance
Total Revenues $69 million, a decrease of 64% year-over-year, primarily due to intense competition in the global e-commerce industry.
Gross Profit $43 million, down from $110 million year-over-year, in line with the decrease in sales.
Gross Margin 62.4%, improved from 57.5% year-over-year, mainly driven by well-received product upgrades and supply chain advantages.
Total Operating Expenses $43 million, a decrease of 62% year-over-year from $112 million, mainly due to decreased revenue and enhanced operational efficiency.
Fulfillment Expenses $5 million, a decrease of 49% year-over-year.
Selling and Marketing Expenses $32 million, a decrease of 66% year-over-year.
G&A Expenses $6 million, a decrease of 22% year-over-year.
R&D Expenses $4 million, down from $5 million year-over-year, maintaining a relatively high investment level as essential for product differentiation.
Net Income $0.6 million, compared to a loss of $1.5 million in the same quarter of last year.
Adjusted EBITDA $1.2 million, compared with a loss of $0.7 million in the second quarter of 2023.
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Operating Highlights
Product Upgrades: We continue to proactively elevate our product quality and refine our differential strategy, with certain product lines showing progress.
Market Positioning: Our strategic focus remains on strengthening our localized operation in key markets to precisely identify our target customers and better define our competitive advantages.
Operational Efficiency: Total operating expenses decreased by 62% year-over-year to $43 million, benefiting from efforts to enhance overall operational efficiency.
Fulfillment Expenses: Fulfillment expenses decreased by 49% year-over-year to $5 million.
Selling and Marketing Expenses: Selling and marketing expenses decreased by 66% year-over-year to $32 million.
R&D Expenses: R&D expenses in the second quarter of 2024 were $4 million, maintaining a relatively high investment level.
Profitability Strategy: We turned profitable in the second quarter with a net income of $0.6 million, focusing on enhanced profitability and product refinement.
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Risk or Challenges
Intense Competition: The company faced intensified competition in the global e-commerce market, which negatively impacted revenue and market positioning.
High Traffic Acquisition Costs: High costs associated with acquiring traffic in the e-commerce sector continued to weigh on the company's top line.
Revenue Decrease: Total revenues decreased by 64% year-over-year to $69 million, primarily due to intense competition.
Operational Efficiency: While operational expenses decreased significantly, the company still faces challenges in maintaining efficiency amidst declining revenues.
Market Conditions: The company is navigating a challenging global market environment, which poses risks to sustained profitability and growth.
Supply Chain Challenges: Despite improvements in gross margin, the company must continue to manage supply chain advantages to maintain product quality and cost efficiency.
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Guidance & Outlook
Strategic Focus: Strengthening localized operations in key markets to identify target customers and define competitive advantages.
Product Optimization: Continued efforts to elevate product quality and refine differential strategy.
Operational Efficiency: Enhancing operational efficiency and profitability as top priorities.
Customer Experience: Expanding efforts to upgrade products, services, and customer experience.
Long-term Value: Commitment to driving high-quality development and delivering sustainable long-term value.
Revenue Expectations: Total revenues decreased by 64% year-over-year to $69 million due to intense competition.
Gross Margin: Gross margin improved to 62.4% from 57.5% year-over-year.
Net Income: Net income of $0.6 million compared to a loss of $1.5 million in the same quarter last year.
Adjusted EBITDA: Adjusted EBITDA was an income of $1.2 million compared to a loss of $0.7 million in Q2 2023.
Future Strategy: Continue executing enhanced profitability strategy while refining products and customer services.
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Shareholder Return Plan
Net Income: $0.6 million for the second quarter of 2024, compared to a net loss of $1.5 million in the same quarter of last year.
Adjusted EBITDA: $1.2 million compared with a loss of $0.7 million in the second quarter of 2023.
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Key Q&A
Q:Review of Unclear Management Responses
A:
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Earnings Word Cloud
The most frequently occurring keywords in this quarter's earning call
AI product
Cai LightInTheBox
LightInTheBox conference
LightInTheBox press
Profitability margin
RD AI
RD investment
acquisition commerce
adjustment profitability
advantage period
advantage value
brand loyalty
chain advantage
commerce industry
competition commerce
competition traffic
cost effort
course result
customer space
decrease sale
determination discipline
development course
development product
development term
differentiation efficiency
discipline discretion
income loss
press release
product upgrade
profitability product
LITB Transcript
LightInTheBox Holding Co., Ltd. (LITB) Q3 2024 Earnings Call Transcript
Unknown12-10
The earnings call reveals a significant revenue decline of 63% YoY, overshadowing operational improvements and strategic shifts. Despite increased gross margins and reduced expenses, the lack of a share buyback program and competitive pressures raise concerns. The Q&A section provided no clarifying insights, suggesting potential management communication issues. Without new partnerships or strong guidance, the stock price is likely to react negatively, especially given the intense competition and economic factors impacting profitability. The absence of a market cap prevents precise impact estimation, but the sentiment remains negative.
LightInTheBox Holding Co., Ltd. (LITB) Q2 2024 Earnings Call Transcript
Unknown8-2
The earnings call shows mixed signals. While the company achieved profitability and improved gross margins, the significant revenue decline due to intense competition is concerning. Operational efficiency has improved, but the high costs of traffic acquisition remain a challenge. The share repurchase is a positive sign, yet the market's competitive nature and unclear management responses in the Q&A may temper investor enthusiasm. Without market cap details, a neutral stock price movement is anticipated.
LightInTheBox Holding Co., Ltd. (LITB) Q1 2024 Earnings Call Transcript
Unknown5-28
The earnings call revealed a significant revenue decline of 52% YoY, driven by macroeconomic headwinds and competition. Despite cost reductions and a slight narrowing of net loss, profitability remains a challenge. The guidance for Q2 2024 indicates further revenue decline. The share repurchase program is positive, but insufficient to offset negative sentiment. The Q&A highlighted ongoing challenges with no new positive insights. Overall, the negative financial performance and weak guidance outweigh the strategic focus on profitability, leading to a negative sentiment.
LightInTheBox Holding Co., Ltd. (LITB) Q4 2023 Earnings Call Transcript
Unknown3-25
The earnings call shows mixed signals: strong full-year revenue growth and reduced losses are positive, but Q4 revenue decline and increased competition are concerning. The guidance for Q1 2024 is not particularly strong, and the challenging macroeconomic environment adds uncertainty. The Q&A session did not reveal any additional insights to alter these sentiments significantly. Without a market cap, the impact on stock price is uncertain, but the mixed financial performance and cautious outlook suggest a neutral sentiment.
LITB Report
Frequently Asked Questions
Where does this earnings call transcript come from?
All transcripts are sourced directly from the official live webcast or the company’s official investor relations website. We use the exact words spoken during the call with no paraphrasing of the core discussion.
How soon is the transcript available after the earnings call ends?
Full verbatim transcripts are typically published within 4–12 hours after the call ends. Same-day availability is guaranteed for all S&P 500 and most mid-cap companies.
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Why do some answers appear as “Unclear” or “Inaudible”?
When audio quality is poor or multiple speakers talk over each other, we mark the section instead of guessing. This ensures complete accuracy rather than introducing potential errors.
Who creates the AI Summary and Key Q&A highlights shown above the transcript?
They are generated by a specialized financial-language model trained exclusively on 15+ years of earnings transcripts. The model extracts financial figures, guidance, and tone with 97%+ accuracy and is regularly validated against human analysts. The full raw transcript always remains available for verification.
