GigaCloud(GCT) - 2024 Q3 - Quarterly Report

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$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$2,316 thousand[90] RSU Grants - The company granted 558,003 RSUs to employees in April 2024 with two types of vesting schedules[88]