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GigaCloud Technology Inc Announces Second Quarter and Six Months Ended June 30, 2024 Financial Results

Furniture World News Desk on 8/7/2024


GigaCloud Technology Inc (Nasdaq: GCT) (“GigaCloud” or the “Company”), a pioneer of global end-to-end B2B technology solutions for large parcel merchandise, today announced financial results for the second quarter and six months ended June 30, 2024, including continued robust growth in revenues, gross profit, and net income over the comparable period last year.

Second Quarter 2024 Financial Highlights  

  • Total revenues of $310.9 million grew 103.1% from $153.1 million in the second quarter of 2023. 
  • Gross profit of $76.4 million increased 89.1% from $40.4 million in the second quarter of 2023. 
  •  Gross margin was 24.6% compared to 26.4% in the second quarter of 2023, primarily relating to the ongoing optimization of newly added warehouses and higher delivery costs in the 2024 period compared with last year.
  •  Net income of $27.0 million, grew 46.7% from $18.4 million in the second quarter of 2023. 
  •  Net income margin was 8.7%, compared with 12.0% in the second quarter of 2023, primarily driven by the concentrated granting and vesting of share-based awards during the second quarter of 2024. Share-based compensation expense was $13.9 million compared to $1.5 million in the second quarter of 2023. 
  •  Diluted EPS increased 44.4% to $0.65 from $0.45 in the second quarter of 2023.
  •  Adjusted EBITDA1 increased 71.5% to $42.7 million from $24.9 million in the second quarter of 2023. 
  •  Adjusted EPS – diluted2 increased 68.9% to $1.03, from $0.61 in the second quarter of 2023. 
  •  Cash, Cash Equivalents, Restricted Cash, and Investments totaled $208.7 million as of June 30, 2024, increasing 13.3% from $184.2 million as of December 31, 2023.

Year to Date 2024 Financial Highlights  

  • Total revenues of $561.9 million, grew 100.0% from $280.9 million in the same period of 2023. 
  • Gross profit of $143.0 million, increased 104.6% from $69.9 million in the same period of 2023. 
  •  Gross margin was 25.4%, compared to 24.9% for the same period of 2023.
  •  Net income of $54.2 million, grew 58.0% from $34.3 million in the same period of 2023. 
  •  Net income margin was 9.6%, compared with 12.2% in the same period of 2023, primarily driven by the concentrated granting and vesting of share-based awards during the second quarter of 2024. 
  •  Diluted EPS increased 57.1% to $1.32 from $0.84 in the same period of 2023. 
  •  Adjusted EBITDA3 increased 72.7% to $77.2 million from $44.7 million in the same period of 2023. 
  •  Adjusted EPS – diluted4 increased 72.5% to $1.88 from $1.09 in the same period of 2023. 

Operational Highlights 

  • GigaCloud Marketplace GMV5 increased 80.7% to $1,097.8 million in the 12 months ended June 30, 2024 from $607.5 million in the same period of 2023. 
  • 3P seller GigaCloud Marketplace GMV6 grew 76.1% to $571.9 million in the 12 months ended June 30, 2024 from $324.7 million in the same period of 2023. 
  •  3P seller GigaCloud Marketplace GMV represented 52.1% of total GigaCloud Marketplace GMV in the 12 months ended June 30, 2024, compared with 53.4% in the same period of 2023.
  •  Active 3P sellers7 increased 39.8% to 930 in the 12 months ended June 30, 2024 from 665 in the same period of 2023. 
  •  Active buyers8 increased 66.8% to 7,257 in the 12 months ended June 30, 2024 from 4,351 in the same period of 2023.
  •  Spend per active buyer9 increased 8.3% to $151,276 in the 12 months ended June 30, 2024 from $139,629in the same period of 2023. 

“We are pleased to report continued remarkable revenue growth through the second quarter of 2024, a reflection of our persistent efforts in expanding Marketplace product and service offerings, including the successful integration of the Noble House acquisition,” said Larry Wu, Founder, Chairman and Chief Executive Officer of GigaCloud. “These achievements demonstrate the surging demand for our Marketplace and the efficiency it brings for buyers and sellers of big and bulky, non-standard items. 

“Our strong adjusted EBITDA results, despite industry-wide headwinds and soaring ocean freight costs during this period, serve as a testament to the resilience of our Supplier Fulfilled Retailing, SFR, business model,” said Wu, “In recognition of the GigaCloud team's accomplishments and dedication, the Company issued our annual employee stock-based compensation awards during the second quarter. In accordance with Company tradition, the majority concentration of grants are vested and expensed within the same quarter. 

“In addition to our strong financial performance, we are thrilled to announce that our industry-first Branding-as-a-Service, or BaaS, has entered its pilot phase and is already experiencing growing interest among both existing and new Marketplace sellers, who want to stand out and amplify their product awareness among buyers. By providing a comprehensive service toolbox, we are committed to driving sustainable, profitable growth and fostering stronger loyalty and engagement within our Marketplace community,” said Wu.

Business Outlook  

The Company expects its total revenues to be between $266 million and $282 million in the third quarter of 2024. This forecast reflects the Company’s current and preliminary views on the market and operational conditions, which are subject to change and cannot be predicted with reasonable accuracy as of the date hereof.

Conference Call  

The Company hosted a conference call to discuss its financial results on August 7, 2024. A live and archived webcast of the conference call is accessible on the Company’s investor relations website at: https://investors.gigacloudtech.com/. 

 

 

About GigaCloud Technology Inc  
GigaCloud Technology Inc is a pioneer of global end-to-end B2B technology solutions for large parcel merchandise. The Company’s B2B ecommerce platform, which it refers to as the “GigaCloud Marketplace,” integrates everything from discovery, payments and logistics tools into one easy-to-use platform. The Company’s global marketplace seamlessly connects manufacturers, primarily in Asia, with resellers, primarily in the U.S., Asia and Europe, to execute cross-border transactions with confidence, speed and efficiency. The Company offers a truly comprehensive solution that transports products from the manufacturer’s warehouse to the end customer’s doorstep, all at one fixed price. The Company first launched its marketplace in January 2019 by focusing on the global furniture market and has since expanded into additional categories such as home appliances and fitness equipment. For more information, please visit the Company’s website: https://investors.gigacloudtech.com/.