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GigaCloud Technology Reports Q3 2024 Financial Results

Furniture World News Desk on 11/7/2024


GigaCloud Technology Inc., a provider of B2B technology solutions for large parcel merchandise, released its financial results for the third quarter and nine months ending September 30, 2024. The company reported substantial increases in revenue, gross profit, net income, and adjusted EBITDA compared to the same periods in 2023.

Q3 2024 Financial Highlights

  • Revenue: Totaled $303.3 million, marking a 70.2% increase from $178.2 million in Q3 2023.
  • Gross Profit: Reached $77.3 million, up 58.1% from $48.9 million in Q3 2023, with a gross margin of 25.5%, down slightly from 27.4% last year.
  • Net Income: $40.7 million, a 68.2% rise from $24.2 million in Q3 2023, with a net income margin of 13.4%.
  • Diluted EPS: Increased by 66.1% to $0.98, from $0.59 in Q3 2023.
  • Adjusted EBITDA: $48.8 million, up 63.8% from $29.8 million in the prior year.
  • Cash Holdings: Cash, equivalents, restricted cash, and investments totaled $260.5 million as of September 30, a 41.4% increase from $184.2 million at the end of 2023.

Year-to-Date 2024 Financial Performance

For the first nine months of 2024, GigaCloud reported:

  • Revenue: $865.3 million, an 88.5% increase from $459.1 million during the same period in 2023.
  • Gross Profit: $220.2 million, up 85.4% from $118.8 million last year, with a gross margin of 25.5%.
  • Net Income: $94.8 million, representing a 62.1% rise from $58.5 million.
  • Diluted EPS: Rose 60.8% to $2.30, compared to $1.43 last year.
  • Adjusted EBITDA: $126.0 million, up 69.1% from $74.5 million in the prior year.

Operational Metrics

  • GigaCloud Marketplace GMV: Increased 80.2% to $1,233.6 million for the 12 months ending September 30, 2024.
  • Third-Party (3P) Seller GMV: Up 72.0% to $635.5 million, representing 51.5% of total marketplace GMV.
  • Active 3P Sellers: Increased by 41.8% to 1,051.
  • Active Buyers: Grew 85.5% to 8,535, with an average spend per buyer of $144,534.

“Our quarterly net income and adjusted EBITDA have reached new record highs of $40.7 million and $48.8 million, respectively,” said Larry Wu, Founder, Chairman, and CEO. “We have surpassed the 1,000 mark for active sellers and accumulated over 8,500 buyers, with Marketplace GMV exceeding $1.2 billion. GigaCloud’s continued growth across all metrics, despite strong industry headwinds, underscores the strength and resilience of our Supplier Fulfilled Retail (SFR) model."

Share Repurchase Program

In response to recent company growth, the board authorized a $46 million share repurchase program on September 3, 2024. As of November 6, 2024, GigaCloud has repurchased approximately $11.4 million in shares under Rule 10b5-1. Erica Wei, interim CFO, commented, “Our commitment to maximizing shareholder value is grounded in thoughtful capital deployment decisions. In line with this approach, we plan to retire the shares repurchased to date, effectively reducing the Company’s total issued shares.”

Business Outlook

GigaCloud anticipates Q4 2024 revenue between $275 million and $290 million, reflecting the company’s current views on market conditions.

 

 

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, 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. GigaCloud offers a 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, including home appliances and fitness equipment. For more information, please visit the Company’s website: https://investors.gigacloudtech.com/.