LightInTheBox Holding Co., Ltd. Q3 FY2024 earnings call

• Strategic shift: In 2024, the company shifted focus from chasing market share to protecting margins and enhancing profitability instead of participating in a race to the bottom.
• Launch of Ador.com: Transforming into a brand-focused apparel designer with Ador.com, a design-driven venture offering proprietary apparel collections directly to consumers, with design studios in the US and China, and plans to expand into women's golf apparel and men's clothing.
• E-commerce services: Leveraging expertise to offer comprehensive services to e-commerce companies including advertising, supply chain management, payment processing, etc.

In the third quarter of 2024, total revenues decreased by 63% year-over-year to $57 million. Gross profit was $35 million, with a gross margin improving to 61% from 60% in the same period last year. Total operating expenses decreased by 63% year-over-year to $34 million. Fulfillment expenses decreased by 50% to $4 million, selling and marketing expenses declined by 67% to $25 million, and general and administrative expenses decreased by 42% to $6 million. Net income was $0.3 million and adjusted EBITDA was $0.8 million, consistent with the third quarter of 2023.

• Prioritize efficiency and profitability improvement.
• Focus on growth and development of new initiatives such as Ador.com operations and e-commerce services for other e-commerce companies.

• Forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from current expectations. Factors causing such differences are detailed in the company's Form 20-F filed with the SEC.

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