LightInTheBox Holding Co., Ltd.
Q4 2020 Earnings Call Transcript

Published: 19 Mar 2021

[Operator:]

Good morning, everyone, and welcome to the Fourth Quarter and Full Year of 2020 Earnings Conference Call for LightInTheBox Holding Company Limited. Today's conference is being recorded. At this time, I would like to turn the call over to Mr. Rene Vanguestaine for opening remarks and introductions. Please go ahead, sir.

[Rene Vanguestaine:]

Thank you, Annie. Well, hello, everyone, and welcome to the call. The company's earnings results were released earlier today and are available on the company's IR website as well as through PR Newswire. Today, you will hear from our CEO, Mr. Jian He, who will give an overview of the company's strategies and recent developments, followed by Ms. Yuan Jun Ye, our Chief Financial Officer, who will go over financial results. Together with them today is Wenyu Liu, our Chief Growth Officer, all will be available for Q&A at the end.

[Jian He:]

Thanks, Rene, and thank you, everyone, for joining us today. We ended 2020 with the strongest quarter ever in terms of revenues, which grew by 78% year-over-year to $133 million. For the full year of 2020, total revenues reached $398 million, up 63% from 2019, an all-time high in our operating history. Fueled by robust top-line performance, our profitability also improved significantly. Adjusted EBITDA and net income in 2020 reached $22.8 million and $13.3 million, respectively, in comparison with adjusted EBITDA loss of $9.1 million and net income of $1.1 million in 2019. The fourth quarter is generally the biggest even for retail sales. During this past record-breaking fourth quarter in the financial year, we delivered over 12 million to 37 million product respectively consumers worldwide. It should be noted that due to the increase of orders in the fourth quarter of 2020, we have orders that was approximately $18 million in transit at the 2020 year-end compared with approximately $8.8 million as 2019 year-end. The $18 million worth of orders will be recognized as revenue in our first quarter 2021 upon customers' acceptance on delivery. One more highlight I would like to mention is our total cash balance at 2020 year-end increasing by $25 million from the end of 2019. Apparently, I was appointed as CEO of our company in December 2018. I emphasized the 2 key aspects to turn the big sale round after 6 years of the consecutive losses since LightInTheBox IPO in 2013. One aspect was to keep improving operational decisions to control costs and the narrow losses. The other was to build a stronger foundation for cross-border e-commerce. Our records including the upgrading the supply chain to lower product ranking and to provide the best value for money products, reducing logistics shipping duration to increase procurement fee and investing in R&D to provide a better user experience for both customers and the suppliers.

[Yuan Jun Ye:]

Thank you, Mr. He, and thank you, everyone, for joining the call. I will now review our financial results of the fourth quarter. Let me remind you that all numbers ported are in U.S. dollars.

[Operator:]

[Rene Vanguestaine:]

Thank you, Annie. This concludes our conference call. Thank you for your participation and ongoing support of LightInTheBox. We look forward to provide updates of our business in the coming weeks and months ahead. Have a good day. Goodbye.

[Operator:]

Thank you. Ladies and gentlemen, that concludes the conference for today, and thank you for participating. You may now all disconnect.