Ladies and gentlemen thank you for standing by and welcome to the LightInTheBox Holding Company Limited, First Quarter 2019 Earnings Conference Call. At this time all participants in a listen-only mode. (Operator Instructions) I must advise you that this call is being recorded today, Monday, 24th of June, 2019.
I'd like to hand the conference over to your first speaker for today, Mr. Christian Arnell. Thank you. Please go ahead.
Thank you. Hello everyone and welcome to LightInTheBox' first quarter 2019 earnings conference call. The company's results were released earlier today and are available on the Company's IR website, as well as through PR Newswire.
Today, you will hear from LightInTheBox' CEO, Mr. Jian He, who will give you an overview of the Company's strategies and recent developments, followed by Ms. Wenyu Liu, the Company's acting Chief Financial Officer, who will address financial results in more detail.
Before we proceed, I'd like to remind you of our Safe Harbor Statement. Please note that the discussion today may contain certain 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 our current expectations. To understand the factors that could cause results to materially differ from those in the forward-looking statements, please refer to our Form 20-F filed with the Securities and Exchange Commission on April 29, 2019. We do not assume any obligation to update any forward-looking statements except as required under applicable law.
At this point, I would like to call the -- turn the call over to Mr. He. Mr. He, please go ahead.
Thanks, Christian and thank you everyone for joining us today. We are pleased to announce that the initiative we implemented last quarter continue to stabilize and turn our business around, as our outlook and long-term growth opportunities gradually improved. Last year in the early stages, these initiatives continue to positively impact our financials and operations, which clearly -- we are heading in the right direction.
While net revenues decreased 27.4% year-over-year to $50.9 million, we improved our gross margin to 34.8% from 29.2%, during the same period last year, which was also essentially flat sequentially. Revenue during the quarter was impacted by the seasonality from the Chinese New Year holiday, where our suppliers based in China shut down.
Our net loss expanded to $14.1 million in the first quarter of 2019, a large portion of which was the impact of a $5.3 million loss in change in fair value of convertible promissory notes issued to acquire Ezbuy. If we exclude the impact from the convertible promissory notes and the share-based compensation, adjusted EBITDA was $7.9 million in the first quarter of 2019, almost flat when compared with the same period last year, which I believe is more indicative of the progress, we have made in turning the business around. These initial results demonstrate the confidence and the dedication of our
Chief Executive Officer and Director
Acting Chief Financial Officer
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