Monty Rakusen/DigitalVision via Getty Images Performance Assessment In my last coverage of GigaCloud Technology (NASDAQ:GCT), I had rated the stock a 'Neutral/Hold' to reflect my view of performance in-line with the S&P 500 (SPY) (SPX). Since then, the stock has lagged the S&P 500 by 19.02%. Performance Since Author's Last Update on GCT (Seeking Alpha, Author's Last Article on GCT) Of course, I could have captured this active return with a 'Sell' view. However, despite my belief that organic sales gro ...

Investment Rating - 6-month rating: Buy (first rating) [1] Core Views - The company has experienced rapid growth in performance and continuous optimization of its business structure, with a total GMV of $790 million in 2023, a 43.6% YoY increase in revenue, and a significant improvement in net profit margin from 5% in 2022 to 13% in 2023 [1] - The post-pandemic era presents a vast market for cross-border furniture, with the global B2B e-commerce market expected to reach $21 trillion by 2027, and the US furniture market, the largest globally, is projected to maintain steady growth [1] - The company has established a competitive edge through supply chain innovation and AI solutions, with a robust market expansion strategy that is expected to drive continuous growth in GMV [1] Company Overview - The company, GigaCloud Technology (GCT), focuses on cross-border B2B transactions of large goods, leveraging its first-mover advantage in the cross-border e-commerce sector since 2010 [7] - It operates three core business segments: GigaCloud 3P, GigaCloud 1P, and off-platform e-commerce, with GigaCloud 3P contributing 53% of the total GMV in 2023 [1][9] - The company has a stable equity structure and experienced management, with a global logistics network covering North America, Japan, the UK, and Germany, and a total warehouse area of approximately 10 million square feet [7] Industry Overview - The global e-commerce market and penetration rate have been steadily increasing, with the B2B e-commerce market expected to expand further, reaching $21 trillion by 2027 [15] - The US furniture market, the largest globally, is expected to see steady demand growth, with the market size projected to reach $295.4 billion by 2028 [16] - China's B2B cross-border e-commerce sector is booming, with the market size expected to reach 6.9 trillion yuan by 2025, driven by strong growth potential in overseas markets [18] Growth Logic - The company has built a competitive advantage through its "supply chain front-loading" model and AI-driven solutions, which enhance operational efficiency and digital capabilities [1][25] - The company's SKU count has increased to over 30,000, attracting more sellers and buyers, with the number of active sellers and buyers growing by 45.5% and 20.5% respectively in 2023 [32] - The company has expanded its global footprint through strategic acquisitions, such as Noble House and Wondersign, which have strengthened its supply chain and technological capabilities [34][36] Financial Projections & Investment Recommendation - The company is expected to achieve revenues of $1.05 billion, $1.39 billion, and $1.82 billion in 2024, 2025, and 2026, respectively, with adjusted net profits of $120 million, $180 million, and $220 million [41] - The company is given a target price of $56, based on a 13x PE ratio for 2025, and a "Buy" rating is recommended [41]

Bulgac GigaCloud Technology Inc. (NASDAQ:GCT) stock is getting crushed today following just-reported Q2 earnings. Despite the impressive growth rate, as well as a really attractive valuation for this growth, the stock just cannot catch a bid. This comes as we have had a one-year target of $60 on the stock, assuming a market multiple commensurate with your average stock, provided the growth continues. The growth is continuing, and while the quarter was not completely pristine, this was a very solid quarter, ...

GigaCloud Technology (NASDAQ:GCT) Q2 2024 Earnings Conference Call August 7, 2024 8:00 AM ET Company Participants Larry Wu - Chairman, Chief Executive Officer Iman Shrock - President David Lau - Chief Financial Officer Conference Call Participants Ryan Meyers - Lake Street Capital Markets Matt Koranda - Roth Capital Thomas Forte - Maxim Group Sean Liu - Panoramic Capital Operator Thank you all for standing by. Welcome to GigaCloud Technology’s Second Quarter 2024 Earnings Conference Call. During today's ca ...

Financial Data and Key Metrics Changes - Total revenues more than doubled year over year to $311,000,000 in Q2, an increase of approximately 24% on a sequential basis [14] - Adjusted EBITDA increased approximately 72% to $43,000,000 in the second quarter [20] - Net income grew nearly 47% to $27,000,000 [20] - Adjusted EPS for the quarter increased 69% to $1.03 [20] Business Line Data and Key Metrics Changes - Service revenues from Giga Cloud 3P grew more than 97% to $85,000,000 [15] - Product revenues grew more than 105% to $225,000,000 in Q2 [15] - GMV in the 3P marketplace grew 76% from a year ago, totaling approximately $572,000,000 for the trailing twelve months ended June 30, 2024 [8] Market Data and Key Metrics Changes - Giga Cloud Marketplace GMV reached and surpassed $1,000,000,000 in the twelve months ended June 30, with an increase of over 80% [6] - The European markets achieved 139% year over year growth in product sales [15] Company Strategy and Development Direction - The company is focused on sustainable and profitable growth as a leader in e-commerce technology solutions [5] - The acquisition of Noble House and Wondersign is expected to enhance product offerings and market reach [5][52] - The launch of BaaS (Branding as a Service) is aimed at providing furniture suppliers with a streamlined way to build their brands [10] Management's Comments on Operating Environment and Future Outlook - Management noted strong demand for the marketplace despite industry-wide challenges, including a 7% year-over-year decline in retail furniture sales in the U.S. [4] - The company anticipates revenues in the range of $266,000,000 to $282,000,000 for Q3 [20] - Management expressed confidence in the ability to deliver sustained profitability despite gross margin pressures from increased shipping costs [19][46] Other Important Information - The company has a cash position of $209,000,000 and remains debt-free [20] - The average buyer spending increased by 8.3% to more than $151,000, indicating increased engagement [7] Q&A Session Summary Question: What enabled the company to outperform the category by such a large margin? - The company attributes its success to a new business model that provides better efficiency in the supply chain [48] Question: How long until 100% of Noble House SKUs are available on the marketplace? - The company plans to gradually open up SKUs to the marketplace while preserving existing sales channels [32] Question: Why is there a sequential revenue decline expected in Q3? - Management indicated that Noble House's outdoor furniture business has strong seasonality, leading to lower contributions in Q3 compared to Q2 [40] Question: What is the outlook for gross margins in Q3 and Q4? - Management expects some compression in margins but does not anticipate significant impacts due to fixed rate contracts with shipping companies [28][43]

GigaCloud Technology Inc. (GCT) came out with quarterly earnings of $0.65 per share, missing the Zacks Consensus Estimate of $0.71 per share. This compares to earnings of $0.45 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -8.45%. A quarter ago, it was expected that this company would post earnings of $0.51 per share when it actually produced earnings of $0.84, delivering a surprise of 64.71%.Over the last four quarters, the ...

Table of Contents _____________________ _____________________ _____________________ _____________________ Cayman Islands 00-0000000 (State or Other Jurisdiction of Incorporation or Organization) (I.R.S. Employer Identification No.) Title of Each Class Trading Symbol Name of Each Exchange on Which Registered Class A ordinary shares, par value $0.05 per share GCT The Nasdaq Stock Market LLC UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q x QUARTERLY REPORT PURSUANT TO SECTION ...

Exhibit 99.1 GigaCloud Technology Inc Announces Second Quarter and Six Months Ended June 30, 2024 Financial Results -- Total Revenues More Than Doubled, Reaching a Record High Significant Growth in Adjusted EBITDA Reflects Enhanced Operational Ef iciency and Profitability -- EL MONTE, Calif., August 6, 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 se ...

Richard Drury My Thesis Update I initiated coverage of GigaCloud Technology (NASDAQ:GCT) stock back in May 2024 with a bullish rating, that ended up aging not according to my plan as the stock started to tank - I was "fortunate" to catch its local top: Seeking Alpha, Oakoff's article on GCT Despite this heavy dip, I still believe the GCT stock serves as a prime illustration of how investors can take a contrarian out-of-consensus stance, with the risk-to-reward ratio favorably aligned in their favor. GCT ...

Investing in undervalued stocks gives investors an edge in capitalizing on companies with high growth potential. Listing these stocks involves scanning the fundamentals, which helps mark potential the market might overlook. Indeed, fundamentals like top-line growth, profit margins, and strategic initiatives reflect a company’s true value.Here, the focus is on three undervalued stocks. To begin with, the first company has demonstrated significant growth in its core business by expanding its global network an ...