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Vipshop Reports Unaudited Fourth Quarter and Full Year 2013 Financial Results
Fourth Quarter 2013 Highlights
- Total net revenues increased by 117.3% over the prior year period to
US$651.0 million , primarily attributable to a 119.5% increase in the number of active customers[1] to 5.7 million from 2.6 million and a 102.4% increase in total orders[2] to 17.7 million from 8.8 million over the prior year period. - Gross margin increased to 24.5% from 22.9% in the prior year period.
- Non-GAAP income from operations[3] increased by 357.0% year over year to
US$33.0 million fromUS$7.2 million in the prior year period. Non-GAAP operating income margin[4] increased to 5.1% from 2.4% in the prior year period. - Net income increased by 300.0% to
US$25.4 million fromUS$6.3 million in the prior year period. Net income margin increased to 3.9% from 2.1% in the prior year period. - Non-GAAP net income[5] increased by 253.9% to
US$28.8 million fromUS$8.1 million in the prior year period. Non-GAAP net income margin[6] increased to 4.4% from 2.7% in the prior year period.
Full Year 2013 Highlights
- Net revenues increased by 145.1% for the full year of 2013 to
US$1.7 billion , primarily attributable to a 129.8% increase in the number of active customers to 9.4 million from 4.1 million and a 124.1% increase in total orders to 49.2 million from 21.9 million. - Gross margin increased to 24.0% from 22.3% in the prior year.
- Non-GAAP income from operations was
US$66.3 million , compared with a non-GAAP loss from operations ofUS$4.3 million in the prior year. Non-GAAP operating income margin was 3.9% compared with a non-GAAP operating loss margin of 0.6% in the prior year. - Net income attributable to ordinary shareholders was
US$52.3 million compared with a net loss ofUS$9.5 million in the prior year period. Net income margin was 3.1% compared with a net loss margin of 1.4% in the prior year period. - Non-GAAP net income attributable to ordinary shareholders was
US$64.8 million compared to a non-GAAP net loss ofUS$1.9 million in the prior year. Non-GAAP net income margin was 3.8% compared with a non-GAAP net loss margin of 0.3% in the prior year period.
Mr.
Mr.
Fourth Quarter 2013 Financial Results
REVENUES
Total net revenues for the fourth quarter of 2013 increased by 117.3% to
The number of active customers for the fourth quarter of 2013 increased by 119.5% to 5.7 million from approximately 2.6 million in the prior year period. The number of total orders for the fourth quarter of 2013 increased by 102.4% to 17.7 million from 8.8 million in the prior year period. This increase was primarily due to the Company's continued efforts to optimize and increase brand and product selections available on its website. In addition, the Company has expanded its warehouse capacity to help facilitate and accommodate increased demands from customers as well as accelerate the delivery of purchased products.
GROSS PROFIT
Gross profit for the fourth quarter of 2013 increased by 131.9% to
OPERATING INCOME AND EXPENSES
Total operating expenses for the fourth quarter of 2013 increased by 108.6% to
- Fulfillment expenses increased by 95.7% to
US$73.2 million fromUS$37.4 million in the prior year period, primarily reflecting the increase in sales volume and number of orders fulfilled. As a percentage of total net revenues, fulfillment expenses decreased to 11.2% from 12.5% in the prior year period, which reflects the Company's strategy of shifting towards using regional and local delivery services to reduce the Company's shipping and handling expenses per order as well as the capacity expansion of regional warehouses. - Marketing expenses increased by 131.3% to
US$28.9 million fromUS$12.5 million in the prior year period. As a percentage of total net revenues, marketing expenses remained stable at 4.4% compared with 4.2% in the prior year period, reflecting the Company's continued efforts in controlling marketing expenses by retaining repeat customers and achieving high growth of new customers through word-of-mouth referrals. - Technology and content expenses increased by 123.6% to
US$14.2 million fromUS$6.3 million in the prior year period, primarily reflecting the Company's continued efforts to invest in its website and IT systems to better support future growth. As a percentage of total net revenues, technology and content expenses remained stable at 2.2% compared with 2.1% in the prior year period. - General and administrative expenses increased by 121.4% to
US$17.5 million fromUS$7.9 million in the prior year period, primarily due to increased headcount and office rentals associated with the growth in the Company's overall business. As a percentage of total net revenues, general and administrative expenses remained stable at 2.7% compared with 2.6% in the prior year period.
Income from operations increased by 445.0% to
Non-GAAP income from operations, which excludes the impact of share-based compensation expenses, increased by 357.0% to
NET INCOME/LOSS
Net income increased by 300.0% to
Non-GAAP net income, which excludes share-based compensation expenses, increased by 253.9% to
For the quarter ended
As of
For the fourth quarter of 2013, net cash from operating activities was
Full Year 2013 Financial Results
Net revenues increased by 145.1% year-over-year for the full year of 2013 to
The number of active customers for the full year of 2013 increased by 129.8% to 9.4 million from 4.1 million in the prior year. The number of total orders for the full year of 2013 increased by 124.1% to 49.2 million from 21.9 million in the prior year.
Gross profit increased by 164.0% to
Income from operations for the full year of 2013 increased to
Non-GAAP income from operations for the full year of 2013 was
Net income attributable to ordinary shareholders was
Non-GAAP net income attributable to ordinary shareholders was
For the full year ended
For the full year of 2013, net cash from operating activities was
Business Outlook
For the first quarter of 2014, the Company expects its total net revenues to be between
Conference Call Information
The Company will hold a conference call on
United States: |
+1-845-675-0438 |
International Toll Free: |
+1-855-500-8701 |
China Domestic: |
400-1200654 |
Hong Kong: |
+852-3051-2745 |
Conference ID: |
#5243210 |
The replay will be accessible through
United States Toll Free: |
+1-855-452-5696 |
International: |
+61 2 8199 0299 |
Conference ID: |
#5243210 |
A live and archived webcast of the conference call will also be available at the Company's investor relations website at http://ir.vip.com.
About
Safe Harbor Statement
This announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates" and similar statements. Among other things, the business outlook and quotations from management in this announcement, as well as
Use of Non-GAAP Financial Measures
The unaudited condensed consolidated financial information is prepared in conformity with accounting principles generally accepted in
The presentation of these non-GAAP financial measures is not intended to be considered in isolation from, or as a substitute for, the financial information prepared and presented in accordance with U.S. GAAP. For more information on these non-GAAP financial measures, please see the table captioned "Vipshop Holdings Limited Reconciliations of GAAP and Non-GAAP Results" at the end of this release.
[1] |
Active customers are defined as any registered member who has purchased products from the Company at least once during the period. |
[2] |
Total orders are defined as the total number of orders placed during the period. |
[3] |
Non-GAAP income/(loss) from operations is a non-GAAP financial measure, which is defined as income/(loss) from operations excluding share-based compensation expenses. |
[4] |
Non-GAAP operating income/(loss) margin is a non-GAAP financial measure, which is defined as non-GAAP income/(loss) from operations as a percentage of total net revenues. |
[5] |
Non-GAAP net income/(loss) is a non-GAAP financial measure, which is defined as net income/(loss) excluding share-based compensation expenses. |
[6] |
Non-GAAP net income/(loss) margin is a non-GAAP financial measure, which is defined as non-GAAP net income /(loss) as a percentage of total net revenues. |
[7] |
"ADS" means American Depositary Share. Each ADS represents two ordinary shares, par value US$0.0001 per share, of the Company. |
Vipshop Holdings Limited |
|||||||
Condensed Consolidated Statements of Income (Loss) and Comprehensive Income (Loss) |
|||||||
(In US dollars, except for share data) |
|||||||
Three Months Ended |
Twelve Months Ended |
||||||
December 31,2012 |
December 31,2013 |
September 30,2013 |
December 31,2011 |
December 31,2012 |
December 31,2013 |
||
USD |
USD |
USD |
USD |
USD |
USD |
||
(Unaudited) |
(Unaudited) |
(Unaudited) |
(Audited) |
(Audited) |
(Unaudited) |
||
Product revenues |
297,570,858 |
641,801,263 |
381,209,303 |
226,291,723 |
690,057,249 |
1,680,560,853 |
|
Other revenues (1) |
2,055,715 |
9,215,025 |
2,499,249 |
851,153 |
2,055,715 |
16,111,882 |
|
Total net revenues |
299,626,573 |
651,016,288 |
383,708,552 |
227,142,876 |
692,112,964 |
1,696,672,735 |
|
Cost of goods sold |
(230,893,516) |
(491,590,070) |
(290,742,385) |
(183,801,334) |
(537,637,860) |
(1,288,900,456) |
|
Gross profit |
68,733,057 |
159,426,218 |
92,966,167 |
43,341,542 |
154,475,104 |
407,772,279 |
|
Operating expenses |
|||||||
Fulfillment expenses(2) |
(37,402,282) |
(73,203,384) |
(44,094,258) |
(45,478,327) |
(96,523,444) |
(197,812,615) |
|
Marketing expenses |
(12,495,522) |
(28,902,617) |
(17,377,035) |
(15,253,325) |
(32,272,629) |
(74,498,341) |
|
Technology and content expenses |
(6,336,055) |
(14,166,544) |
(9,628,377) |
(5,516,361) |
(14,644,113) |
(40,399,276) |
|
General and administrative expenses |
(7,888,972) |
(17,466,907) |
(11,916,875) |
(84,575,539) |
(25,541,812) |
(49,943,775) |
|
Total operating expenses |
(64,122,831) |
(133,739,452) |
(83,016,545) |
(150,823,552) |
(168,981,998) |
(362,654,007) |
|
Other income |
813,545 |
3,873,895 |
2,090,512 |
564,182 |
2,563,321 |
8,708,487 |
|
(Loss) income from operations |
5,423,771 |
29,560,661 |
12,040,134 |
(106,917,828) |
(11,943,573) |
53,826,759 |
|
Interest expense |
(969) |
— |
— |
(494,509) |
(222,868) |
— |
|
Interest income |
1,643,898 |
5,870,876 |
3,750,788 |
122,437 |
3,558,013 |
15,666,129 |
|
Exchange gain |
(10,725) |
251,980 |
287,799 |
18,375 |
(157,473) |
1,356,766 |
|
(Loss) income before income taxes |
7,055,975 |
35,683,517 |
16,078,721 |
(107,271,525) |
(8,765,901) |
70,849,654 |
|
Income tax expenses |
(706,173) |
(10,284,887) |
(4,051,836) |
— |
(706,173) |
(18,549,791) |
|
Net (loss) income |
6,349,802 |
25,398,630 |
12,026,885 |
(107,271,525) |
(9,472,074) |
52,299,863 |
|
Deemed dividend on issuance of Series A Preferred Shares |
— |
— |
— |
(49,214,977) |
— |
— |
|
Net (loss) income |
6,349,802 |
25,398,630 |
12,026,885 |
(156,486,502) |
(9,472,074) |
52,299,863 |
|
Weighted average numbers of shares used in calculating earnings per share: |
|||||||
-- Basic |
101,183,145 |
111,366,346 |
110,802,643 |
46,255,574 |
88,849,206 |
108,962,637 |
|
-- Diluted |
105,028,955 |
117,668,616 |
116,943,581 |
46,255,574 |
88,849,206 |
115,495,173 |
|
Net earnings (loss) per share |
|||||||
-- Basic |
0.06 |
0.23 |
0.11 |
(3.38) |
(0.11) |
0.48 |
|
-- Diluted |
0.06 |
0.22 |
0.10 |
(3.38) |
(0.11) |
0.45 |
|
Net earnings (loss) per ADS (2 ordinary shares equal to 1 ADS) |
|||||||
-- Basic |
0.12 |
0.46 |
0.22 |
(6.77) |
(0.21) |
0.96 |
|
-- Diluted |
0.12 |
0.43 |
0.21 |
(6.77) |
(0.21) |
0.91 |
|
(1)Other revenues primarily consist of revenues from product promotion and online advertising, fees charged to third-party merchants which the Company provides platform access for sales of their product. |
(1)Other revenues primarily consist of revenues from product promotion and online advertising, fees charged to third-party merchants which the Company provides platform access for sales of their product. |
||||||
(2) Including shipping and handling expenses, which amounted US$19 million, US$43million and US$27 million in the three month periods ended December 31, 2012, December 31, 2013 and September 30, 2013, respectively. |
(2) Including shipping and handling expenses, which amounted US$29 million, US$54 million and US$117 million in the twelve month periods ended December 31, 2011,2012 and 2013 respectively. |
||||||
Net (loss) income |
6,349,802 |
25,398,630 |
12,026,885 |
(107,271,525) |
(9,472,074) |
52,299,863 |
|
Other comprehensive income, net of tax: |
|||||||
Foreign currency translation adjustments |
628,902 |
2,022,857 |
347,096 |
(569,628) |
994,606 |
3,518,820 |
|
Comprehensive (loss)income |
6,978,704 |
27,421,487 |
12,373,981 |
(107,841,153) |
(8,477,468) |
55,818,683 |
|
Three Months Ended |
Twelve Months Ended |
||||||
December 31,2012 |
December 31,2013 |
September 30,2013 |
December 31,2011 |
December 31,2012 |
December 31,2013 |
||
USD |
USD |
USD |
USD |
USD |
USD |
||
(Unaudited) |
(Unaudited) |
(Unaudited) |
(Audited) |
(Audited) |
(Unaudited) |
||
Share-based compensation charges included are follows |
|||||||
Fulfillment expenses |
78,229 |
246,858 |
211,958 |
297,095 |
292,866 |
721,531 |
|
Marketing expenses |
81,449 |
109,228 |
100,734 |
184,404 |
169,100 |
381,326 |
|
Technology and content expenses |
263,332 |
1,404,929 |
919,511 |
729,420 |
897,133 |
3,275,228 |
|
General and administrative expenses |
1,370,327 |
1,659,580 |
1,825,952 |
72,716,983 |
6,237,850 |
8,078,178 |
|
Total |
1,793,337 |
3,420,595 |
3,058,155 |
73,927,902 |
7,596,949 |
12,456,263 |
|
Vipshop Holdings Limited |
|||||||
Condensed Consolidated Balance Sheets |
|||||||
(Amounts in US dollars) |
|||||||
As of December 31, 2012 |
As of December 31, 2013 |
||||||
USD |
USD |
||||||
ASSETS |
(Unaudited) |
||||||
CURRENT ASSETS |
|||||||
Cash and cash equivalents |
124,472,629 |
334,715,019 |
|||||
Held-to-maturity securities |
86,097,191 |
385,841,626 |
|||||
Accounts receivable |
6,990,560 |
3,055,446 |
|||||
Amounts due from related parties |
177,237 |
— |
|||||
Other receivables |
9,993,887 |
16,481,032 |
|||||
Inventories |
143,963,931 |
270,126,305 |
|||||
Advance to suppliers |
9,569,795 |
13,216,869 |
|||||
Prepaid expenses |
686,876 |
2,384,801 |
|||||
Deferred tax assets |
— |
11,126,647 |
|||||
Total current assets |
381,952,106 |
1,036,947,745 |
|||||
NON-CURRENT ASSETS |
|||||||
Property and equipment, net |
12,637,567 |
24,299,418 |
|||||
Deposits for property and equipment |
4,322,217 |
5,518,404 |
|||||
Other assets |
5,230 |
5,294,375 |
|||||
Total non-current assets |
16,965,014 |
35,112,197 |
|||||
TOTAL ASSETS |
398,917,120 |
1,072,059,942 |
|||||
LIABILTIES AND EQUITY |
|||||||
CURRENT LIABILITIES |
|||||||
Accounts payable (Including accounts |
193,455,827 |
476,847,881 |
|||||
Advance from customers (Including advance from customers of the VIE without recourse to the Company of $55,948,713 and $131,781,751 as of December 31, 2012 and December 31, 2013, respectively) |
55,948,713 |
131,781,751 |
|||||
Accrued expenses and other current liabilities(Including accrued expenses and other current liabilities of the VIE without recourse to the Company of $24,908,418 and $101,097,647 as of December 31, 2012 and December 31, 2013, respectively) |
52,676,443 |
196,327,519 |
|||||
Amounts due to related parties(Including amounts due to related parties of the VIE without recourse to the Company of $789,057 and $1,369,767 as of December 31, 2012 and December 31, 2013, respectively) |
1,335,756 |
2,141,411 |
|||||
Deferred income (Including deferred income of the VIE without recourse to the Company of $10,850,319 and $ 20,592,249 as of December 31, 2012 and December 31, 2013, respectively) |
12,917,567 |
21,705,981 |
|||||
Total current liabilities |
316,334,306 |
828,804,543 |
|||||
Total liabilities |
316,334,306 |
828,804,543 |
|||||
EQUITY: |
|||||||
Ordinary shares (US$0.0001 par value, 471,620,833 shares authorized, and 101,284,881 and 111,665,972 shares issued and outstanding as of December 31, 2012 and December 31, 2013, respectively) |
10,128 |
11,167 |
|||||
Additional paid-in capital |
258,368,448 |
363,221,310 |
|||||
Accumulated losses |
(176,025,335) |
(123,725,472) |
|||||
Accumulated other comprehensive income |
229,573 |
3,748,394 |
|||||
Total shareholders' equity |
82,582,814 |
243,255,399 |
|||||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY |
398,917,120 |
1,072,059,942 |
|||||
Vipshop Holdings Limited |
|||||||
Reconciliations of GAAP and Non-GAAP Results |
|||||||
Three Months Ended |
Twelve Months Ended |
||||||
December 31,2012 |
December 31,2013 |
September 30,2013 |
December 31,2011 |
December 31,2012 |
December 31,2013 |
||
USD |
USD |
USD |
USD |
USD |
USD |
||
(Unaudited) |
(Unaudited) |
(Unaudited) |
(Audited) |
(Audited) |
(Unaudited) |
||
(Loss) income from operations |
5,423,771 |
29,560,661 |
12,040,134 |
(106,917,828) |
(11,943,573) |
53,826,759 |
|
Share-based compensation expenses |
1,793,337 |
3,420,595 |
3,058,155 |
73,927,902 |
7,596,949 |
12,456,263 |
|
Non-GAAP (loss) income from operations |
7,217,108 |
32,981,256 |
15,098,289 |
(32,989,926) |
(4,346,624) |
66,283,022 |
|
Net (loss) income |
6,349,802 |
25,398,630 |
12,026,885 |
(156,486,502) |
(9,472,074) |
52,299,863 |
|
Share-based compensation expenses |
1,793,337 |
3,420,595 |
3,058,155 |
73,927,902 |
7,596,949 |
12,456,263 |
|
Non-GAAP net (loss) income |
8,143,139 |
28,819,225 |
15,085,040 |
(82,558,600) |
(1,875,125) |
64,756,126 |
|
Non-GAAP weighted average numbers of shares used in calculating net income per share: |
|||||||
-- Basic |
101,183,145 |
111,366,346 |
110,802,643 |
46,255,574 |
88,849,206 |
108,962,637 |
|
-- Diluted |
105,028,955 |
117,668,616 |
116,943,581 |
46,255,574 |
88,849,206 |
115,495,173 |
|
Non-GAAP net income per share |
|||||||
-- Basic |
0.08 |
0.26 |
0.14 |
(1.78) |
(0.02) |
0.59 |
|
-- Diluted |
0.08 |
0.25 |
0.13 |
(1.78) |
(0.02) |
0.56 |
|
Non-GAAP net income per ADS (2 ordinary shares equal to 1 ADS) |
|||||||
-- Basic |
0.16 |
0.52 |
0.27 |
(3.57) |
(0.04) |
1.19 |
|
-- Diluted |
0.16 |
0.49 |
0.26 |
(3.57) |
(0.04) |
1.12 |
SOURCE
Investor Relations Contact: Vipshop Holdings Limited, Millicent Tu, +86 (20) 2233-0732, IR@vipshop.com; ICR, Inc., Jeremy Peruski, +1 (646) 405-4866, IR@vipshop.com