With total revenue of US$398 million and net profit soaring 1161%, Lazada’s performance reached a new high last year!

LightInTheBox, a cross-border e-commerce giant that went public in 2013 , disclosed its 2020 fourth quarter and full-year performance report as scheduled on March 19. The financial report shows that LightInTheBox achieved historic breakthroughs in important financial indicators in 2020, with both revenue and profit setting new records since its listing!

LightInTheBox 2020 Q4 results disclosure highlights:

l   Total revenue in the fourth quarter of 2020 was US$133 million, a year-on-year increase of 77.7%;

l   Gross profit margin was 44.9%, compared with 40.4% in the same period last year;

l   Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) was negative $0.5 million, compared to negative $2.6 million in the same period last year.

LightInTheBox 2020 full-year results disclosure highlights:

l   Total revenue for the full year 2020 was $398 million, a year-on-year increase of 63.4%;

l   Net profit was US$13.3 million, up 1,161.4% year-on-year , compared to US$1.1 million in 2019;

l   Gross profit margin was 44.2% in 2019, compared to 40.1% in 2019;

l   Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) was $22.8 million, compared with negative $9.1 million in 2019.

As of December 31, 2020, Lazada held cash, cash equivalents and restricted cash of US$65.5 million, compared with US$40.4 million as of December 31, 2019, an increase of US$25.1 million year-on-year.

Based on current performance, Lazada expects its total revenue for the first quarter of 2021 to be between US$110 million and US$125 million, with year-on-year growth expected to reach between 114% and 143%.

He Jian, CEO of LightInTheBox, said: In 2020, important financial indicators have achieved a historic breakthrough, with both revenue and profit hitting new highs since its listing; annual operating cash flow has increased significantly, achieving significant annual growth for the first time on the basis of successfully turning losses into profits in 2019. These achievements also fully confirm the effectiveness of the "efficiency" and "focus" insisted by the new management. In 2021, LightInTheBox will continue to strengthen and implement its established growth strategy, continuously improve customer experience, and create long-term and stable returns for shareholders, employees, and suppliers.

Now it seems that Lazada's future growth momentum is very stable. However, what you may not know is that before the company achieved its first profit in the third quarter of 2019, it had been losing money for five consecutive years and even received a delisting warning, which could be said to be "hanging by a thread."

The reason why Lazada was able to turn around its performance and grow against the trend amid the global outbreak of the epidemic is closely related to the proactive response measures taken by CEO He Jian, who took office in 2018, and the management team in the face of various challenges. Improving efficiency is the key to Lazada's sustainable performance growth.

According to He Jian, the most important thing in the retail industry is "efficiency is king", and efficiency mainly comes from the following two aspects: single-point efficiency and system-level efficiency.

Single-point efficiency refers to the efficiency of each independent link, including improving the overall efficiency of the factory, product launch efficiency, logistics distribution efficiency, and traffic delivery efficiency.

System-level efficiency includes the company's data-based operational capabilities, which can improve the efficiency of the entire chain of the company's operations.

It is precisely because since 2019, Lazada has increased its investment in research and development, including 100 million yuan in algorithm research, striving to improve the efficiency of each link and the operating efficiency of the system, thereby improving the company's overall work efficiency.

In addition, LightInTheBox also delivered a perfect answer in responding to the sudden outbreak of the epidemic crisis.

According to previous reports by Ebrun, at the critical moment of the domestic epidemic, Lazada concentrated its efforts on solving the problem of resuming work and production for domestic suppliers ; at a time when the epidemic in Europe and the United States continued to worsen, it tried its best to ensure the purchasing needs of overseas users ; in the "post-epidemic era" when consumer purchasing needs have changed due to the epidemic, it is looking for services that are closer to customer needs.

These are LightInTheBox's proactive responses to the outbreak.

LightInTheBox has continuously improved both the supply and demand sides and continuously perfected its own operating model, so it has achieved today's performance. Sellers can also refer to LightInTheBox's turnaround experience, improve their disadvantages, develop their advantages, and create their own glory!

LightInTheBox

Financial Report