LightInTheBox(LITB) - 2022 Q4 - Earnings Call Transcript

Financial Data and Key Metrics Changes - Revenues increased 38% year-over-year to a record high of $156 million in Q4 2022, bringing annual revenues above $500 million [4][8] - Gross margin improved significantly to 55% from 46% in 2021 [5][11] - Net loss for Q4 2022 was $48 million compared to net income of $9 million in Q4 2021, primarily due to a $43 million impairment loss [10][11] Business Line Data and Key Metrics Changes - Revenues from apparel increased 59% year-over-year to $124 million in Q4 2022, representing 79% of total revenues compared to 69% in the same quarter of 2021 [8][11] - For the full year 2022, revenues from apparel reached about $400 million, a 46% increase from $274 million in 2021 [11] Market Data and Key Metrics Changes - The revenue growth rate in the apparel category significantly outpaced the overall market, with a 51% year-over-year increase in Q1 2022 [6] Company Strategy and Development Direction - The company plans to continue investing in R&D to improve user experience and efficiency in reaching customers, focusing on affordable and aesthetically pleasing clothing [7] - The strategy includes targeting middle-class consumers aged 40 and older who have higher disposable income [6] Management's Comments on Operating Environment and Future Outlook - Management noted that despite global inflation and economic uncertainty, the company has performed remarkably well, with a focus on value-for-money products [5][10] - For Q1 2023, the company expects net revenue to be between $135 million and $145 million, representing a growth rate of 44% to 54% compared to Q1 2022 [11] Other Important Information - The company took a one-off non-cash impairment on an equity investment of $56 million, which had a negative after-tax impact of $43 million [5][10] - The year-end cash balance increased to $95 million from $60 million a year ago [10][11] Q&A Session Summary Question: Can the company maintain the growth rate looking out over the full year? - Management indicated that while Q1 guidance shows good growth, consumer caution in spending may persist, leading to continued demand for value-for-money products. The company will focus on consumer needs and operational efficiency to drive growth [15]