Ecmoho Ltd (NASDAQ:MOHO) Q2 2020 Earnings Conference Call - Final Transcript
Sep 15, 2020 • 09:00 pm ET
to one of the platforms as well as pandemic-related inventory loss.
Total operating expenses were $20.5 million compared with $17.2 million in the same quarter last year. Total operating expenses as a percentage of total revenues increased from 19.7% last year to 20.4% this year. In particular, fulfillment expenses as a percentage of total revenues declined from 5.3% last year to 4.6% this year, primarily due to lower unit expense we paid to third-party logistics providers. Sales and marketing expenses as a percentage of total revenues increased from 11.4% last year to 12.1% this year, primarily due to higher increases in platform fees and promotional expenses. G&A expenses as a percent of total revenues increased from 2.5% last year to 3.4% this year, primarily due to higher professional service fees, higher labor cost and insurance expense. R&D expenses as a percentage of total revenues decreased from 0.5% last year to 0.2% this year, primarily due to reduced headcount.
Operating loss was $3.2 million compared with an operating income of of $2.2 million last year. Non-GAAP operating loss was $2.8 million compared with non-GAAP operating income of $2.6 million last year. Non-GAAP net loss was $4.0 million compared with non-GAAP net income of $1.8 million during the same quarter in 2019.
As of the end of the second quarter, we had $68.5 million in cash, cash equivalents and restricted cash compared with $51.1 million at the end of 2019. Inventory days declined from 89 days in the first quarter to 54 days in the second quarter, primarily due to higher sales in the second quarter as well as our effort to improve working capital efficiency.
Turning to guidance. Based on current macroeconomic conditions and industry conditions, we will continue to focus on improving our working capital efficiency and improving our profitability including [Indecipherable] certain less profitable brands from our portfolio. As a result, for the third quarter of 2020, we expect total revenues to be approximately flat to down 5% from the third quarter of 2019. The above outlook is based on current market conditions and reflects our preliminary estimates, which are all subject to change.
This concludes our prepared remarks. Thank you. And operator, we're ready to begin the Q&A session. Operator?