This conference call transcript was computer generated and almost certianly contains errors. This transcript is provided for information purposes only.EarningsCall, LLC makes no representation about the accuracy of the aforementioned transcript, and you are cautioned not to place undue reliance on the information provided by the transcript.
spk03: 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. I will now turn the conference call over to your host, Ms. Jenny Kai. Please go ahead, Jenny.
spk04: Thank you, operator. Hello, everyone, and welcome to Light in the Box fourth 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 at ir.lightninginthebox.com. On the call from Lighting in the Box today are Mr. Jian He, Chairman and CEO, Ms. Yan Junye, 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. 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. To understand factors that could cause results to materially differ from those in forward-looking Please refer to the company's Form 20F 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 that in the box earnings press release and this conference call include the discussion of audited GAAP financial measures as well as audited non-GAAP financial measures. Please refer to the company's earnings press release, which concerns a reconciliation of the audited non-GAAP measures to the audited GAAP measures. Now, I'd like to turn the call over to Light in the Box chairman and CEO, Mr. He. Please go ahead.
spk02: Good morning and good evening, everyone. Thank you for joining our first quarter and four-year 2023 Berlin Conference Call today. In 2023, as we strategically focused on high-quality development, we delivered housing results in the challenging microenvironment and increasingly competitive landscape. Notably, our four-year revenue reached $629 million. up 25% year-over-year. Apparel remains our strategic recall category and drives our sales, accounting for over 80% of total revenues. Thanks to our continuous efforts and investment in our technologies and data analysis capabilities, we gained a great understanding of evolving consumption patterns, enabling us to better align our products. services and marketing strategies with consumer preference and demands. More encouraging, we are able to improve our profitability with our four-year adjusted EBITDA loss, bettering by 34% year-over-year to $6.3 million. Heading into 2024, we are seeing an evolving operating environment. and increasingly fierce industry competition. To navigate these market dynamics, we will place 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-chain offering to more customers worldwide. Meanwhile, we will continue strengthening our brand values and visibility to attract organic traffic from potential customers, increase marketing efficiency, and improve the brand's overall competitiveness. As always, we are committed to pursue healthy, sustainable development and delivering value for our shareholders in the long run. With that, I will hand the call over to Yuanjun to go through our financial results.
spk05: 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. dollar terms. Now let me start with our financial highlights for the quarter. In the fourth quarter, our total revenues decreased by 13% year-over-year to $136 million. Revenues from apparel decreased by 12%. percent year-over-year to $109 million, representing 80 percent of our total revenues compared with 79 percent in the same quarter of 2022. Gross margin was 56 percent in the fourth quarter compared with 54 percent a year ago due to an increase in apparel sales percentage of revenues. Our total operating expenses decreased by 10 percent year-over-year to $80 million, compared with 89 million in the same period of last year. The decrease was mainly due to our ongoing efforts to enhance our operational efficiency. Net loss was 4.3 million compared with 48.3 million in the same quarter of 2022. The difference was primarily due to a one-time impairment charge in the fourth quarter of 2022. Now let me walk you through our 2023 full-year financials. Total revenues reached $629 million, an increase of 25% year-over-year from $504 million in 2022. Revenues from apparel increased by 30% to $580 million in 2023. compared with $400 million in 2022, and represented 82% of total revenues in 2023, compared with 79 in 2022. Total operating expenses were $370 million, compared with $289 million in 2022, primarily due to expenditures on marketing expenses. Human expenses and G&E expenses were 5.5% and 5.4% of total revenues respectively, both representing percentage decreases from the same period last year. Net loss was 9.6 million compared with 56.6 billion in 2022. Moving to the guidance for the first quarter of 2024, based on information currently available and business seasonality We expect the net revenues to be between $70 million and $80 million. This concludes our prepared remarks. We'll be happy to take some questions now. Operator, please continue.
spk03: Thank you. If you wish to ask a question, please press star 1 on your telephone and wait for your name to be announced. If you wish to cancel your request, please press star 2. If you are on a speakerphone, please pick up the handset to ask your question.
spk01: We will just pause for a moment to allow questioners to enter the queue. We are showing no questions. I'd like to turn the call back over to the company for closing remarks.
spk04: Thank you once again for joining us today. If you have further questions, please feel free to contact Lighting the Box Investor Relations through the contact information provided on our website or PNCity Financial Communications. Have a great day.
spk03: That does conclude our conference for today. Thank you for participating. You may now disconnect. Thank you. Thank you. you So, Hello, ladies and gentlemen. Thank you for standing by for Light in the Box's fourth 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. I will now turn the conference call over to your host, Ms. Jenny Kai. Please go ahead, Jenny.
spk04: Thank you, Operator. Hello, everyone, and welcome to Light in the Box fourth quarter and four-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 at ir.lightinthebox.com. On the call from Light in the Box today are Mr. Jian He, Chairman and CEO, Ms. Yan Junye, 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. 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. To understand factors that could cause results to materially differ from those in forward-looking Please refer to the company's Form 20F 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 that inbox earnings press release and this conference call include discussions of audited GAAP financial measures as well as audited non-GAAP financial measures. Please refer to the company's earnings press release, which concerns a reconciliation of the audited non-GAAP measures to the audited GAAP measures. Now, I'd like to turn the call over to Light in the Box chairman and CEO, Mr. He. Please go ahead.
spk02: Good morning and good evening, everyone. Thank you for joining our first quarter and four-year 2023 Burlington Conference call today. In 2023, as we strategically focused on high-quality development, we delivered housing results in the challenging microenvironment and increasingly competitive landscape. Notably, our four-year revenue reached $629 million. up 25% year-over-year. Apparel remains our strategic recall category and drives our sales, accounting for over 80% of total revenues. Thanks to our continuous efforts and investment in our technologies and data analysis capabilities, we gained a great understanding of evolving consumption patterns, enabling us to better align our products services and marketing strategies with consumer preference and demands. More encouraging, we are able to improve our profitability with our four-year adjusted EBITDA loss, bettering by 34% year-over-year to $6.3 million. Heading into 2024, we are seeing an evolving operating environment and increasingly fierce industry competition. To navigate these market dynamics, we will place 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-chain offering to more customers worldwide. Meanwhile, we will continue strengthening our brand values and visibility to attract organic traffic from potential customers, increase marketing efficiency, and improve the brand's overall competitiveness. As always, we are committed to pursue healthy, sustainable development and delivering value for our shareholders in the long run. With that, I will hand the call over to Yuanjun to go through our financial results.
spk05: 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. dollar terms. Now let me start with our financial highlights for the quarter. In the fourth quarter, our total revenues decreased by 13% year-over-year to $136 million. Revenues from apparel decreased by 12%. percent year-over-year to $109 million, representing 80 percent of our total revenues, compared with 79 percent in the same quarter of 2022. Gross margin was 56 percent in the fourth quarter, compared with 54 percent a year ago. This is an increase in apparel sales' percentage of revenues. Our total operating expenses decreased by 10 percent year-over-year to $80 million compared with 89 million in the same period of last year. The decrease was mainly due to our ongoing efforts to enhance our operational efficiency. Net loss was 4.3 million compared with 48.3 million in the same quarter of 2022. The difference was primarily due to a one-time impairment charge in the fourth quarter of 2022. Now let me walk you through our 2023 full-year financials. Total revenues reached $629 million, an increase of 25% year-over-year from $504 million in 2022. Revenues from apparel increased by 30% to $518 million in 2023. compared with $400 million in 2022, and represented 82% of total revenues in 2023, compared with 79 in 2022. Total operating expenses were $370 million, compared with $289 million in 2022, primarily due to expenditures on marketing expenses. Human expenses and G&E expenses were 5.5% and 5.4% of total revenues respectively, both representing percentage decreases from the same period last year. Net loss was 9.6 million compared with 56.6 billion in 2022. Moving to the guidance for the first quarter of 2024, based on information currently available and business seasonality We expect the net revenues to be between $70 million and $80 million. This concludes our prepared remarks. We'll be happy to take some questions now. Operator, please continue.
spk03: Thank you. If you wish to ask a question, please press star 1 on your telephone and wait for your name to be announced. If you wish to cancel your request, please press star 2. If you are on a speaker phone, please pick up the handset to ask your question.
spk01: We will just pause for a moment to allow questioners to enter the queue. We are showing no questions.
spk03: I'd like to turn the call back over to the company for closing remarks.
spk04: Thank you once again for joining us today. If you have further questions, please feel free to contact Lighting the Box Investor Relations through the contact information provided on our website or PNCenter Financial Communications. Have a great day.
spk03: That does conclude our conference for today. Thank you for participating. You may now disconnect.
Disclaimer