Core Viewpoint - GigaCloud Technology Inc. reported quarterly earnings of $0.68 per share, exceeding the Zacks Consensus Estimate of $0.46 per share, but down from $0.84 per share a year ago, indicating a 47.83% earnings surprise [1] Financial Performance - The company achieved revenues of $271.91 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 5.64% and up from $251.08 million year-over-year [2] - Over the last four quarters, GigaCloud has exceeded consensus EPS estimates two times and topped revenue estimates four times [2] Stock Performance - GigaCloud shares have declined approximately 21.7% since the beginning of the year, compared to a 3.8% decline in the S&P 500 [3] - The current consensus EPS estimate for the upcoming quarter is $0.64 on revenues of $308.1 million, and for the current fiscal year, it is $2.90 on revenues of $1.2 billion [7] Industry Outlook - The Technology Services industry, to which GigaCloud belongs, is currently ranked in the top 27% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8]

Financial Performance - Total revenues for Q1 2025 reached $271.9 million, a 8.3% increase from $251.1 million in Q1 2024[38] - Service revenues increased to $94.1 million, up 22.7% from $76.6 million year-over-year[38] - Product revenues were $177.8 million, slightly up from $174.5 million in the same period last year[38] - Gross profit for Q1 2025 was $63.7 million, compared to $66.5 million in Q1 2024, reflecting a decrease of 4.0%[38] - Operating income decreased to $28.3 million, down 18.7% from $34.8 million in Q1 2024[38] - Net income for Q1 2025 was $27.1 million, a slight decrease from $27.2 million in Q1 2024[38] - Adjusted EBITDA for the three months ended March 31, 2025, was $33.2 million, a decrease from $34.5 million in the same period of 2024[116] - Net income for the three months ended March 31, 2025, was $27,146, compared to $27,195 for the same period in 2024, reflecting a slight decrease of 0.2%[49] Assets and Liabilities - Total assets increased to $1,091.0 million as of March 31, 2025, compared to $1,070.5 million at the end of 2024[34] - Total liabilities rose to $678.1 million, up from $665.3 million at the end of 2024[31] - Shareholders' equity increased to $412.9 million, compared to $405.2 million at the end of 2024[33] - Accounts receivable, net, increased to $67,000 thousand as of March 31, 2025, from $57,313 thousand at the end of 2024, reflecting a growth of 16.5%[87] - Total inventories rose to $204,854 thousand as of March 31, 2025, compared to $172,489 thousand at the end of 2024, indicating an increase of 18.7%[88] Cash Flow - Net cash provided by operating activities decreased to $9,433 from $15,309, a decline of 38.1% year-over-year[49] - Cash, cash equivalents, and restricted cash at the end of the period were $252,408, down from $260,444 at the beginning of the period, a decrease of 3.9%[52] - Net cash provided by operating activities for the three months ended March 31, 2025, was $9.4 million, down from $15.3 million in the same period of 2024[194] - Net cash used in financing activities for the three months ended March 31, 2025, was $22.8 million, mainly from the repurchase of ordinary shares totaling $22.7 million[199] Share Repurchase and Equity - The company repurchased 1,400,986 shares, resulting in a treasury share cost of $34.6 million[42] - The company executed share repurchase transactions totaling approximately $15.9 million as of May 12, 2025[109] - The board of directors approved a new share repurchase program allowing for the purchase of up to $62 million of Class A ordinary shares, with the program running through August 28, 2025[200] Revenue Breakdown - GigaCloud Marketplace GMV increased to $1.42 billion for the 12 months ended March 31, 2025, representing a growth of 56.1% from $907.7 million in the prior year[119] - The number of active 3P sellers rose to 1,154, a 33.4% increase from 865 in the previous year[121] - Active buyers increased to 9,966, reflecting an 81.4% growth compared to 5,493 in the prior year[123] - Spend per active buyer decreased to $142,156, down 14.0% from $165,239 in the previous year[124] - GigaCloud Marketplace revenues grew to 64.5% of total revenues in Q1 2025, up from 62.8% in Q1 2024[136] Operating Expenses - Cost of revenues increased to $208.2 million in Q1 2025, representing 76.6% of total revenues, compared to 73.5% in Q1 2024[148] - Operating expenses rose to $35.4 million in Q1 2025, accounting for 13.0% of total revenues, compared to 12.6% in Q1 2024[152] - Selling and marketing expenses rose by 27.4% to $18.6 million in Q1 2025, primarily due to a 27.3% increase in platform service fees to $8.4 million[173] - General and administrative expenses totaled $14.3 million in Q1 2025, down from $15.4 million in Q1 2024[157] - Research and development expenses increased by 42.0% to $2.5 million in Q1 2025 from $1.8 million in Q1 2024[168] Tax and Interest - The provision for income taxes for the three months ended March 31, 2025, was $5,359 thousand, with an effective tax rate of 16.5%, down from $6,125 thousand and 18.4% in 2024[100] - Interest income increased to $2.6 million in Q1 2025 from $1.6 million in Q1 2024[168] - The company reported foreign currency exchange gains of $0.8 million in Q1 2025, compared to losses of $2.7 million in Q1 2024[168] Future Outlook - The company plans to continue evaluating opportunities for future acquisitions to enhance its service offerings and operational capabilities[132] - The company plans to fund future capital expenditures with existing cash balances and anticipated cash flows from operations[203] - The company is subject to trade restrictions that could materially affect its business, particularly with proposed tariff increases between the U.S. and China[223]

Financial Performance - Total revenues for Q1 2025 were $271.9 million, an increase of 8.3% year-over-year[5] - Gross profit was $63.7 million, a decrease of 4.2% year-over-year, with a gross margin of 23.4% compared to 26.5% in Q1 2024[5] - Net income was $27.1 million, consistent with the prior-year period, resulting in a net income margin of 10.0%[5] - Total revenues for Q1 2025 reached $271,906,000, a 8.2% increase from $251,077,000 in Q1 2024[22] - Service revenues increased to $94,068,000, up 22.7% from $76,623,000 year-over-year[22] - Product revenues were $177,838,000, slightly up from $174,454,000, indicating a 2.0% growth[22] - Gross profit for Q1 2025 was $63,726,000, down from $66,548,000, reflecting a decrease of 4.0%[22] - Operating income decreased to $28,323,000 from $34,817,000, a decline of 18.7%[22] - Net income for Q1 2025 was $27,146,000, a slight decrease from $27,195,000 in Q1 2024[22] - Adjusted EBITDA for Q1 2025 was $33,183,000, down from $34,497,000, a decrease of 3.8%[25] - Cash provided by operating activities was $9,433,000, compared to $15,309,000 in Q1 2024, a decline of 38.5%[23] Market Activity - GigaCloud Marketplace GMV increased 56.1% year-over-year to $1,416.7 million for the 12 months ended March 31, 2025[5] - Active buyers rose by 81.4% year-over-year to 9,966 for the 12 months ended March 31, 2025[5] - Active 3P sellers increased by 33.4% year-over-year to 1,154 for the 12 months ended March 31, 2025[5] - Spend per active buyer was $142,156 for the 12 months ended March 31, 2025[7] Cash and Shareholder Returns - As of March 31, 2025, cash and cash equivalents totaled $287.5 million, a decrease of 5.1% from December 31, 2024[5] - Cash, cash equivalents, and restricted cash at the end of the period totaled $252,408,000, down from $260,444,000 at the beginning of the period[23] - The company repurchased ordinary shares worth $22,734,000 during the quarter[23] - The share repurchase program was increased to $78 million, with approximately 3.7 million shares repurchased for $61.8 million as of May 12, 2025[9] Future Outlook - The company expects total revenues to be between $275 million and $305 million in Q2 2025[8]

Core Viewpoint - GigaCloud Technology Inc continues to demonstrate resilience and growth in its B2B marketplace despite industry challenges, driven by the effectiveness of its Supplier Fulfilled Retailing (SFR) model [4][6]. Financial Highlights - Total revenues for Q1 2025 reached $271.9 million, an increase of 8.3% year-over-year [6]. - Gross profit was $63.7 million, down 4.2% year-over-year, resulting in a gross margin of 23.4%, compared to 26.5% in Q1 2024 [6]. - Net income was $27.1 million, consistent with the prior year's figure, yielding a net income margin of 10.0% [6]. - Diluted EPS increased by 3.0% year-over-year to $0.68 [6]. - Adjusted EBITDA for the quarter was $33.2 million, a decrease of 3.8% year-over-year [6]. Operational Highlights - GigaCloud Marketplace GMV grew by 56.1% year-over-year to $1,416.7 million for the 12 months ending March 31, 2025 [6]. - GMV from 3P sellers increased by 49.9% year-over-year to $734.3 million, representing 51.8% of total GMV [6]. - Active 3P sellers rose by 33.4% year-over-year to 1,154, while active buyers surged by 81.4% to 9,966 [6]. Share Repurchase Program - The Board approved a share repurchase program initially set at $46 million, later increased to $62 million in March 2025, and further raised to $78 million in May 2025 [7][8]. - Approximately 3.7 million shares have been repurchased for $61.8 million, representing nearly 150% of the gross proceeds from the IPO [4][7]. Business Outlook - The company anticipates total revenues between $275 million and $305 million for Q2 2025, reflecting current market conditions [5].

Company Performance - GigaCloud Technology Inc. closed at $13.84, with a daily increase of +0.54%, outperforming the S&P 500's gain of 0.44% [1] - Over the past month, the company's shares have increased by 16.75%, surpassing the Business Services sector's gain of 11.73% and the S&P 500's gain of 10.62% [1] Earnings Forecast - The upcoming earnings report is scheduled for May 12, 2025, with an expected EPS of $0.46, reflecting a 45.24% decrease from the same quarter last year [2] - Revenue is forecasted to be $257.4 million, which is a 2.52% increase from the prior-year quarter [2] Annual Estimates - For the full year, earnings are projected at $2.90 per share, showing a decline of -4.92%, while revenue is estimated at $1.2 billion, indicating a growth of +3.33% from the previous year [3] Analyst Sentiment - Recent changes in analyst estimates are crucial as they reflect near-term business trends, with positive revisions indicating optimism about the company's outlook [3] Valuation Metrics - GigaCloud Technology Inc. has a Forward P/E ratio of 4.75, which is significantly lower than the industry's average Forward P/E of 18.15 [6] - The Technology Services industry, part of the Business Services sector, holds a Zacks Industry Rank of 62, placing it in the top 26% of over 250 industries [6][7]

Core Insights - GigaCloud Technology Inc. received two Gold Stevie Awards in 2025 for "Fastest Growing Company of the Year" and "Achievement in Growth" at the American Business Awards, marking the third consecutive year of recognition in multiple categories [1][2][3] Company Performance - The company has shown significant growth momentum, having previously won a Silver Stevie Award in 2024 and a Bronze Stevie Award in 2023, indicating a consistent track record of industry recognition [2] - GigaCloud's revenue has reached $1 billion annually, with a global fulfillment footprint exceeding 10 million square feet, showcasing its rapid ascent in the B2B ecommerce sector [3] Business Model and Strategy - The company's B2B Marketplace integrates various services, including discovery, payments, and logistics, facilitating efficient cross-border transactions primarily between manufacturers in Asia and resellers in the U.S., Asia, and Europe [5] - GigaCloud's "Branding-as-a-Service" initiative is highlighted as a forward-thinking strategy that supports scalable growth and innovation in the large-parcel supply chain [3]

Group 1 - The article discusses the subscription service Beyond the Wall Investing, which offers access to high-quality equity research reports, potentially saving investors thousands of dollars annually [1] - The author acknowledges a previous bullish stance on GigaCloud Technology Inc. (NASDAQ: GCT) stock, indicating a "Buy" rating from early May last year, which has been updated [1] - The investing group provides features such as a fundamentals-based portfolio, weekly analysis from institutional investors, short-term trade alerts based on technical signals, and community engagement [1] Group 2 - The article emphasizes that past performance does not guarantee future results and that no specific investment recommendations are provided [2] - It clarifies that the views expressed may not reflect those of Seeking Alpha as a whole, and the analysts involved may not be licensed or certified [2]

Group 1 - GigaCloud Technology Inc. will report its financial results for Q1 2025 on May 12, 2025, after market close [1] - A conference call to discuss the financial results will take place on the same day at 6:30 PM Eastern Time [1] - Participants are encouraged to pre-register for the conference call and join 15 minutes early [2] Group 2 - GigaCloud Technology Inc. specializes in global end-to-end B2B ecommerce technology solutions for large parcel merchandise [3] - The GigaCloud Marketplace integrates discovery, payments, and logistics tools into a single platform, facilitating cross-border transactions [3] - The company launched its marketplace in January 2019, initially focusing on the global furniture market and later expanding into home appliances and fitness equipment [3]

Financial Performance - In H1'24, GigaCloud Technology's revenue reached $561.9 million, representing a 100% year-over-year growth[11] - Gross profit for H1'24 was $143.0 million, with a gross margin of 25.4%[11] - Adjusted EBITDA for H1'24 was $77.2 million, resulting in a margin of 13.7%[11] - Net income for H1'24 amounted to $54.2 million, yielding a margin of 9.6%[11] - In Q2'24, revenue grew to $310.9 million, a 103.1% increase year-over-year[11] - Adjusted EBITDA for Q2'24 was $42.7 million, with a margin of 13.7%[11] - Net income for Q2'24 was $27.0 million, resulting in a margin of 8.7%[11] Marketplace Growth - GigaCloud Marketplace GMV reached $1.1 billion LTM ended June 30, 2024[11] - GigaCloud Marketplace GMV grew by 80.7% from Q2'23 to Q2'24[11] - 3P Seller GigaCloud Marketplace GMV reached $571.9 million LTM ended June 30, 2024[11] - 3P Seller GigaCloud Marketplace GMV Growth was 76.1% from Q2'23 to Q2'24[11] - The number of active sellers increased by 39.8% year-over-year[11] - The number of active buyers increased by 66.8% year-over-year[11] - Active buyer spend was approximately $151.3k LTM ended June 30, 2024[11]

November 2024 Disclaimer Q3 Earnings Presentation The information contained in this presentation has been prepared by GigaCloud Technology Inc (the "Company") solely for informational purposes and should not be construed to be, directly or indirectly, in whole or in part, an offer to buy or sell and/or an invitation and/or a recommendation and/or a solicitation of an offer to buy or sell any security or instrument or to participate in any investment or trading strategy, nor shall any part of it form the bas ...