-- Total Revenues More Than Doubled, Reaching a Record High

Significant Growth in Adjusted EBITDA Reflects Enhanced Operational Efficiency and Profitability --

EL MONTE, Calif., Aug. 06, 2024 (GLOBE NEWSWIRE) -- 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 $139,629 in 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 will host a conference call to discuss its financial results at 8:00 am U.S. Eastern Time (8:00 pm Hong Kong Time) on August 7, 2024. Participants who wish to join the call should pre-register here at https://s1.c-conf.com/diamondpass/10040859-gqrny5.html. Upon registration, participants will receive the dial-in number and a unique PIN, which can be used to join the conference call. If participants register and forget their PIN or lose their registration confirmation email, they may re-register to receive a new PIN. All participants are encouraged to dial in 15 minutes prior to the start time.

A live and archived webcast of the conference call will be 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/.

Non-GAAP Financial Measures

The Company uses certain non-GAAP financial measures, including Adjusted EBITDA and Adjusted EPS – diluted, to understand and evaluate its core operating performance. Adjusted EBITDA is net income excluding interest, income taxes and depreciation, further adjusted to exclude share-based compensation expense. Adjusted EPS – diluted is a financial measure defined as our Adjusted EBITDA divided by our diluted weighted-average shares outstanding, respectively. Management uses Adjusted EBITDA and Adjusted EPS – diluted as measures of operating performance, for planning purposes, to allocate resources to enhance the financial performance of our business, to evaluate the effectiveness of our business strategies and in communications with our Board of Directors and investors concerning our financial performance. Non-GAAP financial measures, which may differ from similarly titled measures used by other companies, are presented to enhance investors’ overall understanding of our financial performance and should not be considered a substitute for, or superior to, the financial information prepared and presented in accordance with U.S. GAAP.

For more information on the non-GAAP financial measures, please see the tables captioned “Unaudited Reconciliation of Adjusted EBITDA” and “Unaudited Reconciliation of Adjusted EPS – diluted” set forth at the end of this press release.

Forward-Looking Statements

This press release contains “forward-looking statements”. Forward-looking statements reflect our current view about future events. These forward-looking statements involve known and unknown risks and uncertainties and are based on the Company’s current expectations and projections about future events that the Company believes may affect its financial condition, results of operations, business strategy and financial needs. Investors can identify these forward-looking statements by words or phrases such as “may,” “will,” “could,” “expect,” “anticipate,” “aim,” “estimate,” “intend,” “plan,” “believe,” “is/are likely to,” “propose,” “potential,” “continue” or similar expressions. The Company undertakes no obligation to update or revise publicly any forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and the Company cautions investors that actual results may differ materially from the anticipated results and encourages investors to review other factors that may affect its future results in the Company’s registration statement and other filings with the SEC.

For investor and media inquiries, please contact:

GigaCloud Technology Inc

Investor Relations

Email: ir@gigacloudtech.com

PondelWilkinson, Inc.

Laurie Berman (Investors) – lberman@pondel.com

George Medici (Media) – gmedici@pondel.com

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(1)  One of our fulfillment centers in Japan experienced a fire in March 2024. We recognized losses as a result of the fire. Based on the provisions of our insurance policy, the gross losses have been reduced by the estimated insurance proceeds expected to be received from our insurance carrier. We have determined that partial recovery of the incurred losses is probable and therefore recorded gains of $41 thousand in the three months ended June 30, 2024 and net losses of $308 thousands in the six months ended June 30, 2024. We do not believe such losses to be recurring or frequent in nature.

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(1) One of our fulfillment centers in Japan experienced a fire in March 2024. We recognized losses as a result of the fire. Based on the provisions of our insurance policy, the gross losses have been reduced by the estimated insurance proceeds expected to be received from our insurance carrier. We have determined that partial recovery of the incurred losses is probable and therefore recorded gains of $41 thousand in the three months ended June 30, 2024 and net losses of $308 thousands in the six months ended June 30, 2024. We do not believe such losses to be recurring or frequent in nature.

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¹  Adjusted EBITDA is a non-GAAP financial measure. For more information on the non-GAAP financial measure, please see the section of “Non-GAAP Financial Measure” and the table captioned “Unaudited Reconciliation of Adjusted EBITDA” set forth at the end of this press release.

²  Adjusted EPS – diluted is a non-GAAP financial measure. For more information on the non-GAAP financial measure, please see the section of “Non-GAAP Financial Measure” and the table captioned “Unaudited Reconciliation of Adjusted EPS – diluted” set forth at the end of this press release.

³  Adjusted EBITDA is a non-GAAP financial measure. For more information on the non-GAAP financial measure, please see the section of “Non-GAAP Financial Measure” and the table captioned “Unaudited Reconciliation of Adjusted EBITDA” set forth at the end of this press release.

⁴  Adjusted EPS – diluted is a non-GAAP financial measure. For more information on the non-GAAP financial measure, please see the section of “Non-GAAP Financial Measure” and the table captioned “Unaudited Reconciliation of Adjusted EPS – diluted” set forth at the end of this press release.

⁵  GigaCloud Marketplace GMV means the total gross merchandise value of transactions ordered through our GigaCloud Marketplace including GigaCloud 3P and GigaCloud 1P, before any deductions of value added tax, goods and services tax, shipping charges paid by buyers to sellers and any refunds.

⁶  3P seller GigaCloud Marketplace GMV means the total gross merchandise value of transactions sold through our GigaCloud Marketplace by 3P sellers, before any deductions of value added tax, goods and services tax, shipping charges paid by buyers to sellers and any refunds.

⁷  Active 3P sellers means sellers who have sold a product in GigaCloud Marketplace within the last 12-month period, irrespective of cancellations or returns.

⁸  Active buyers means buyers who have purchased a product in the GigaCloud Marketplace within the last 12-month period, irrespective of cancellations or returns.

⁹  Spend per active buyer is calculated by dividing the total GigaCloud Marketplace GMV within the last 12-month period by the number of active buyers as of such date.