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spk00: 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. I will now turn the call over to your host, Ms. Jenny Cai. Please go ahead, Jenny.
spk03: Thank you, operator. Hello everyone and welcome to Light in the Box's second quarter 2024 earnings conference call. The company's earnings results were released via Newswell 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. Yuan 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 concern forward-looking statements made under the safe harbor provisions of the US 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 the factors that could cause results to materially differ from those in forelooking statements, please refer to the company's firm 20-F filed with the Securities and Exchange Commission. The company does not assume any obligation to update any forelooking statements except as required under applicable law. Please also note that, like in the boxes, earnings precedees in 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 precedees which concerns a reconciliation of the unaudited non-GAAP measures to the unaudited GAAP measures. Now I'd like to turn the call over to Lighting the Box Chairman and CEO, Mr. He. Please go ahead.
spk01: Good morning and good evening, everyone. Thank you for joining our second quarter 2024 earnings conference call today. The second quarter of 2024 was a challenging month, with the intensified competition and high traffic acquisition costs in the global e-commerce market continuing to weigh on our top line. However, the strategical adjustments we made to prioritize profitability in the first quarter proved effective, resulting in a net income of 0.6 million for the second quarter of 2024. A turnaround from a net loss from the same period of last year and the first quarter of this year. We are pleased to see our determination, discipline, and strong execution paying off in our bottom-line performance. And we remain agile amid the evolving 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 remains on strengthening our localized operations in key markets to precisely identify our target customers better define all the competitive advantages and explore potential breakthrough points as we strive to strengthen our brand abilities and cultivate a loyal customer base. We are making progress with certain product lines and we are opting you on further development in due course. We are encouraged by the results 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 extend our efforts to upgrade our products services, and customer experience, as well as our localized operations to differentiate ourselves and build brand recognition and loyalty. As always, we are committed to driving high-quality development and delivering sustainable long-term value to all stakeholders. With that, I will now hand over the call to Yangjun. to go through our financial results.
spk02: Thank you, Mr. Ho. 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. dollar terms. Now let me share our financial performance for the quarter. In the second quarter, our total revenues decreased by 64% year over year. to $69 million, primarily due to the intense competition in the global e-commerce industry. Our gross profit in the second quarter of 2024 was $43 million, compared with $110 million in the same quarter of last year, in line with the decrease in sales. However, our gross margin improved to $62 million. 62.4% this quarter from 67.5% in the same period last year, mainly driven by our well-received product upgrades and supply chain advantages. Our total operating expenses decreased by 62% year-over-year to $43 million from $112 million 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% year-over-year to $5 million. Selling and marketing expenses decreased by 66% year-over-year to $32 million. G&A expenses decreased by 22% year-over-year to $6 million as part of G&A expenses. R&D expenses in the second quarter of 2024 were $4 million, compared with $5 million in the same quarter of last year. We maintain our investment in R&D at a relatively high level as we view R&D and AI as essential for advancing product differentiation and operational efficiency. Moving to our bottom line, we turned profitable in the second quarter. We recorded net income of .6 million compared with a loss of 1.5 million in the same quarter of last year. Our adjusted EBITDA was an income of 1.2 million. compared with a loss of $27 million in the second quarter of 2023. Profitability was mainly attributable to the gross margin improvement, which in turn was driven by our product upgrades and dedicated cost and management efforts. Looking ahead, we will continue to execute our enhanced profitability strategy while also further refining our products and customer services. This concludes our prepared remarks. We'll be happy to take some questions now. Operator, please continue.
spk00: Thank you. If you wish to ask a question, please press star then 1 on your telephone and wait for your name to be announced. If you wish to cancel your request, please press star then two. If you are on a speakerphone, please pick up the handset to ask your question. Again, if you have a question, please press star then one. As there are no questions now, I'd like to turn the call back over to the company for closing remarks.
spk03: Thank you once again for joining us today. If you have further questions, please feel free to contact Light in the Box's Investor Relations through the contact information provided on our website or PNCity Financial Communications. Have a great day.
spk02: Thank you.
spk00: that does conclude our conference for today thank you for participating you may now disconnect
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