Core Viewpoint - GigaCloud Technology Inc. has experienced a decline of -11.3% in its stock price over the past month, contrasting with the S&P 500's increase of +3.6% and the Zacks Technology Services industry's gain of +10.1% [2] Earnings Estimates - For the current quarter, GigaCloud is expected to report earnings of $0.93 per share, reflecting a year-over-year increase of +6.9% [5] - The consensus earnings estimate for the current fiscal year stands at $2.91, indicating a growth of +26.5% from the previous year [5] - For the next fiscal year, the earnings estimate is $3.62, which represents a +24.4% increase compared to the prior year [6] - The Zacks Rank for GigaCloud is 3 (Hold), based on the recent changes in earnings estimates and other related factors [7] Revenue Growth - The consensus sales estimate for the current quarter is $290 million, indicating a year-over-year growth of +18.5% [10] - For the current fiscal year, the revenue estimate is $1.16 billion, reflecting a significant increase of +64.1% [10] - The revenue estimate for the next fiscal year is $1.32 billion, which shows a growth of +14.3% [10] Recent Performance - In the last reported quarter, GigaCloud achieved revenues of $303.32 million, marking a year-over-year increase of +70.2% [11] - The earnings per share (EPS) for the same period was $0.98, compared to $0.59 a year ago, resulting in an EPS surprise of +46.27% [11] - Over the last four quarters, GigaCloud has surpassed consensus EPS estimates three times and has exceeded revenue estimates each time [12] Valuation - GigaCloud is graded A in the Zacks Value Style Score, indicating that it is trading at a discount compared to its peers [16]

EL MONTE, Calif., Dec. 17, 2024 (GLOBE NEWSWIRE) -- GigaCloud Technology Inc (NASDAQ:GCT) ("GigaCloud" or the "Company"), a pioneer of global end-to-end B2B ecommerce technology solutions for large parcel merchandise, today announced its recognition as a winner in Furniture Today's 2024 Reader Rankings across multiple categories, including "Industry's Leading Innovator," "Best Ecommerce Technology," and "Best Logistics Technology Company." "We are honored to be recognized again by Furniture Today's Reader R ...

Core Insights - GigaCloud Technology Inc has been recognized as a winner in Furniture Today’s 2024 Reader Rankings, achieving accolades in multiple categories including "Industry’s Leading Innovator," "Best Ecommerce Technology," and "Best Logistics Technology Company" [1] - The company reported that its 1,051 active sellers and 8,535 active buyers generated over $1.2 billion in Marketplace GMV for the twelve months ending September 30, 2024, highlighting the strength of its marketplace model [1] - GigaCloud's B2B ecommerce platform, the GigaCloud Marketplace, connects manufacturers primarily in Asia with resellers in the U.S., Asia, and Europe, facilitating efficient cross-border transactions [3] Company Overview - GigaCloud Technology Inc specializes in global end-to-end B2B ecommerce technology solutions for large parcel merchandise, integrating discovery, payments, and logistics into a single platform [3] - The company launched its marketplace in January 2019, initially focusing on the global furniture market and has since expanded into home appliances and fitness equipment [3] Industry Context - Furniture Today is a leading publication in the furniture industry, providing essential updates on retail and manufacturing news, product trends, and market analysis [2] - The annual Reader Rankings by Furniture Today invites readers and industry peers to select organizations for excellence and innovation across various categories, including finance, logistics, suppliers, and technology [1]

When deciding whether to buy, sell, or hold a stock, investors often rely on analyst recommendations. Media reports about rating changes by these brokerage-firm-employed (or sell-side) analysts often influence a stock's price, but are they really important?Let's take a look at what these Wall Street heavyweights have to say about GigaCloud Technology Inc. (GCT) before we discuss the reliability of brokerage recommendations and how to use them to your advantage.GigaCloud Technology Inc. currently has an aver ...

As an investor who started my path five years ago with my own capital, I represent a blend of hands on experience and academic background in corporate finance. Due to my relatively young age I thrive on discovering long-duration growth opportunities and actively seek out opportunities that align with my risk-taker mindset. In addition to my appetite for growth, I also understand the importance of balancing the portfolio with low-volatility dividend-playing names to be a well-rounded investor. In my analysis ...

When deciding whether to buy, sell, or hold a stock, investors often rely on analyst recommendations. Media reports about rating changes by these brokerage-firm-employed (or sell-side) analysts often influence a stock's price, but are they really important?Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about GigaCloud Technology Inc. (GCT) .GigaCloud Technology Inc. currently has an average brokerage r ...

With just one subscription to Beyond the Wall Investing , you can save thousands of dollars a year on equity research reports from banks. You'll keep your finger on the pulse and have access to the latest and highest-quality analysis of this type of information.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 toHe leads the investing group Beyond the Wall Investing with features that in ...

Financial Data and Key Metrics Changes - Total revenues grew 70% year-over-year to $303 million for Q3 2024, driven by increased market recognition and scale of the marketplace [27][24] - Net income increased more than 68% year-over-year to $41 million, with adjusted EBITDA improving nearly 64% to $49 million for the third quarter [33][24] - The company ended Q3 with liquidity of approximately $260 million and remains debt-free [34][35] Business Line Data and Key Metrics Changes - Service revenue from the 3P business grew substantially to $100 million, reflecting strong marketplace demand [28] - Product revenue growth exceeded 60%, with off-platform product growth at 110% [29] - Active 3P sellers surpassed 1,000, reaching 1,051, while the active buyer base grew to 8,535 [11][10] Market Data and Key Metrics Changes - Revenue from Europe grew organically by 140% year-over-year for Q3, indicating strong momentum in that market [15] - GigaCloud Marketplace GMV increased by more than 80% year-over-year, maintaining growth pace from the previous quarter [10] Company Strategy and Development Direction - The company is focused on enhancing technology through Wondersign and expanding its capabilities to serve brick-and-mortar stores [5][21] - Plans to retire repurchased shares to reduce total issued shares, reflecting confidence in long-term potential [7] - The company aims to diversify its supply chain to mitigate risks from tariffs and changing political landscapes [35][36] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating industry headwinds and highlighted the strong operational performance [4][9] - The company anticipates a moderation in growth pace as it reaches larger scale, which is typical for companies at this stage [26] - For Q4, total revenues are expected to range between $275 million and $290 million, with potential margin impacts from increased shipping costs [37][31] Other Important Information - The acquisition of Noble House is on track to reach breakeven by the end of the year, with approximately 300 new SKUs developed [20][19] - The company is implementing a targeted approach to manage fluctuations in shipping costs and strengthen relationships with providers [31] Q&A Session Summary Question: Outlook for Q4 revenue breakdown between service and product - Management expects the mix to remain similar to Q3, with Noble House contributing 15% to 20% of product revenue [41][42] Question: Success in onboarding buyers onto the platform - Growth is attributed to market understanding and word-of-mouth referrals, particularly in the furniture sector [43] Question: Impact of tariffs on third-party sellers - More 3P sellers are sourcing from China, and tariffs are included in product costs, but their overall impact may not be as significant as perceived [46][48] Question: Guidance for Q4 and factors affecting performance - Market performance and demand from retailers will significantly impact results [50][51] Question: Strategic M&A opportunities - The company is looking for targets that complement existing businesses, enhance technology, or accelerate growth in Europe [59][60] Question: Pricing power to offset freight costs - The company has pricing power but is cautious about pushing costs downstream in the current market environment [62][64]

GigaCloud Technology Inc. (GCT) came out with quarterly earnings of $0.98 per share, beating the Zacks Consensus Estimate of $0.67 per share. This compares to earnings of $0.59 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 46.27%. A quarter ago, it was expected that this company would post earnings of $0.71 per share when it actually produced earnings of $0.65, delivering a surprise of -8.45%.Over the last four quarters, the ...

Cash and Cash Equivalents - Cash and cash equivalents increased from $183.3 million to $217.6 million, reflecting a growth of 18.7%[19] - Total cash, cash equivalents, and restricted cash increased to $218.3 million as of September 30, 2024, from $184.2 million as of December 31, 2023[52] Total Assets - Total current assets rose from $392.8 million to $527.7 million, a 34.3% increase[19] - Total assets expanded from $846.9 million to $1.07 billion, a 26.7% increase[19] - Long-lived assets in the United States increased from $400,554 thousand in December 2023 to $476,306 thousand in September 2024, representing an 18.9% growth[60] Inventories - Inventories grew from $132.2 million to $183.3 million, indicating a 38.6% rise[19] - Inventories rose from $132,247 thousand in December 2023 to $183,322 thousand in September 2024, a 38.6% increase[74] Total Liabilities - Total current liabilities increased from $205.8 million to $247.3 million, up 20.2%[21] - Total liabilities grew from $556.5 million to $673.0 million, a 21.0% rise[21] - Total lease liabilities increased from $403,237 thousand in December 2023 to $504,463 thousand in September 2024[78] Shareholders' Equity - Retained earnings surged from $177.7 million to $272.5 million, a 53.3% increase[24] - Total shareholders' equity increased from $290.4 million to $400.4 million, up 37.9%[24] - Total shareholders' equity as of September 30, 2024, was $400.39 million, up from $254.20 million as of September 30, 2023[33][34] - The company's total shareholders' equity increased to $400.4 million as of September 30, 2024, from $358.4 million as of July 1, 2024[39] Operating Lease Assets and Liabilities - Operating lease right-of-use assets grew from $398.9 million to $476.0 million, a 19.3% increase[19] - Operating lease right-of-use assets increased from $398,922 thousand in December 2023 to $476,027 thousand in September 2024, a 19.3% growth[76] - Operating lease cost for the nine months ended September 30, 2024, was $75,644 thousand, compared to $23,902 thousand for the same period in 2023[79] - Weighted average remaining lease term for operating leases decreased from 6.45 years in December 2023 to 5.71 years in September 2024[80] - Future minimum lease payments as of September 30, 2024, total $565,349 thousand for operating leases and $842 thousand for finance leases[82] Accounts Receivable - Accounts receivable, net increased from $58.9 million to $62.5 million, up 6.2%[19] - Accounts receivable, net, increased from $58,876 thousand in December 2023 to $62,549 thousand in September 2024, a 6.2% growth[72] - Customer A accounted for 15.2% of total accounts receivable as of September 30, 2024, down from 30.2% as of December 31, 2023[54] Revenue Growth - Total revenues for the nine months ended September 30, 2024, reached $865.26 million, a significant increase from $459.09 million in the same period in 2023[27] - Total revenues for the nine months ended September 30, 2024, reached $865,260 thousand, a significant increase from $459,094 thousand in the same period of 2023, reflecting an 88.5% growth[62] - Total revenues for the nine months ended September 30, 2024, reached $865.26 million, a significant increase from $459.09 million in the same period in 2023[95] Net Income - Net income for the nine months ended September 30, 2024, was $94.85 million, compared to $58.53 million in the same period in 2023[27] - Net income for the nine months ended September 30, 2024, was $94.8 million, compared to $58.5 million for the same period in 2023[41] - Net income for the nine months ended September 30, 2024, was $94,849 thousand, compared to $58,533 thousand for the same period in 2023[93] Gross Profit - Gross profit for the nine months ended September 30, 2024, was $220.25 million, up from $118.80 million in the same period in 2023[27] Operating Income - Operating income for the nine months ended September 30, 2024, was $102.99 million, compared to $72.96 million in the same period in 2023[27] Research and Development Expenses - Research and development expenses increased to $7.44 million for the nine months ended September 30, 2024, from $1.58 million in the same period in 2023[27] Share-Based Compensation - Share-based compensation for the nine months ended September 30, 2024, was $15.65 million, compared to $2.60 million in the same period in 2023[33][34] - Share-based compensation increased significantly to $15.6 million for the nine months ended September 30, 2024, from $2.1 million in the same period in 2023[41] Earnings Per Share - Basic net income per ordinary share for the nine months ended September 30, 2024, was $2.30, compared to $1.43 in the same period in 2023[27] - Basic net income per ordinary share increased from $1.43 in the nine months ended September 30, 2023, to $2.30 in the same period in 2024[93] Foreign Currency Translation - Foreign currency translation adjustment, net of nil income taxes, resulted in a loss of $551,000 for the nine months ended September 30, 2024, compared to a loss of $510,000 in the same period in 2023[27] Share Repurchase - The company repurchased 215,201 shares for $1.6 million during the period ending September 30, 2023[38] - The company repurchased 468,559 Class A ordinary shares at an average price of $24.35, totaling approximately $11.4 million, under a share repurchase program approved on September 3, 2024[103][104] Service Provider Concentration - One service provider represented 17.2% and 18.2% of total purchases for the three and nine months ended September 30, 2024, respectively[54] VIE Transactions - The company terminated Account Control Agreements with four consolidated VIEs and acquired 100% equity interest in these entities in January 2024[48] Cash Flow from Operations - Net cash provided by operating activities was $89.7 million for the nine months ended September 30, 2024, compared to $82.7 million for the same period in 2023[41] Investments - Purchases of investments totaled $53.5 million for the nine months ended September 30, 2024, compared to none in the same period in 2023[41] Service Revenues - Service revenues in the United States grew from $51,474 thousand in September 2023 to $100,373 thousand in September 2024, marking a 95.0% increase[62] - Service revenues for the nine months ended September 30, 2024, were $253.17 million, up from $129.85 million in 2023, driven by growth in last-mile delivery and warehousing services[95] Platform Commission Revenues - Platform commission revenues attributed to Hong Kong rose from $2,796 thousand in September 2023 to $4,245 thousand in September 2024, a 51.8% increase[62] Ocean Transportation Service Revenues - Ocean transportation service revenues in the United States surged from $5,420 thousand in September 2023 to $25,984 thousand in September 2024, a 379.4% growth[62] Last-Mile Delivery Service Revenues - Last-mile delivery service revenues in the United States increased from $26,641 thousand in September 2023 to $31,583 thousand in September 2024, an 18.5% rise[62] Product Revenues - Product revenues in the United States grew from $90,413 thousand in September 2023 to $138,258 thousand in September 2024, a 52.9% increase[62] - Product revenues for the nine months ended September 30, 2024, surged to $612.09 million, compared to $329.25 million in 2023, with off-platform ecommerce contributing $313.18 million[95] Revenue Recognition - Revenue from goods or services transferred to customers at a point in time accounted for $657.31 million in the nine months ended September 30, 2024, up from $354.08 million in 2023[95] Insurance Receivable - The company recognized a $2.0 million loss due to a fire at a fulfillment center in Japan, with $1.7 million recorded as an insurance receivable as of September 30, 2024[101] Contract Liabilities - Contract liabilities increased to $5.33 million as of September 30, 2024, from $3.74 million in 2023, reflecting higher cash received in advance for merchandise sales and services[98] Warrants Exercise - The Underwriter exercised 29,400 warrants in February 2024, resulting in the issuance of 13,372 Class A ordinary shares[84] Effective Income Tax Rate - The company's effective income tax rate decreased from 18.9% in the nine months ended September 30, 2023, to 15.6% in the same period in 2024[91] Unrecognized Compensation Expenses - Unrecognized compensation expenses related to unvested RSUs as of September 30, 2024, amounted to $2,316 thousand[90] RSU Grants - The company granted 558,003 RSUs to employees in April 2024 with two types of vesting schedules[88]