-- Revenue Nearly Doubled and Hit Record High; Further Accelerated GigaCloud Marketplace Across all Metrics -- EL MONTE, Calif., May 09, 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 first quarter ended March 31, 2024, including substantial growth in revenue, gross profit, and net income over the comparable prior year period. First Quarter 2024 Financial Highlights Total revenues of $251.1 million, increased 96.5% from $127.8 million in the first quarter of 2023. Gross profit of $66.5 million, increased 124.7% from $29.6 million in the first quarter of 2023.Gross margin grew to 26.5%, up 340 basis points from 23.1% in the first quarter of 2023. Net income of $27.2 million, increased 71.1% from $15.9 million in the first quarter of 2023.Net income margin was 10.8%, down 160 basis points from 12.4% in the first quarter of 2023.Diluted EPS increased 69.2% to $0.66, from $0.39 in the first quarter of 2023. Adjusted EBITDA1 increased 74.2% to $34.5 million, from $19.8 million in the first quarter of 2023.Adjusted EPS – diluted2 increased 71.4% to $0.84, from $0.49 in the first quarter of 2023. Cash, Restricted Cash, and Investments totaled $196.2 million as of March 31, 2024, increased 6.5% from $184.2 million as of December 31, 2023. Operational Highlights GigaCloud Marketplace GMV3 increased 64.0% to $907.7 million in the 12 months ended March 31, 2024, from $553.5 million in the 12 months ended March 31, 2023. 3P seller GigaCloud Marketplace GMV4 increased 71.8% to $489.9 million in the 12 months ended March 31, 2024, from $285.2 million in the 12 months ended March 31, 2023. 3P seller GigaCloud Marketplace GMV represented 54.0% of total GigaCloud Marketplace GMV in the 12 months ended March 31, 2024, up from 51.5% in the 12 months ended March 31, 2023. Active 3P sellers5 increased 43.7% to 865 in the 12 months ended March 31, 2024, from 602 in the 12 months ended March 31, 2023. Active buyers6 increased 29.1% to 5,493 in the 12 months ended March 31, 2024, from 4,255 in the 12 months ended March 31, 2023. Spend per active buyer7 increased 27.0% to $165,239 in the 12 months ended March 31, 2024, from $130,083 in the 12 months ended March 31, 2023. "We are pleased to report exceptional growth in revenue, accompanied by marked improvements in gross profit margin," said Larry Wu, Founder, Chairman and Chief Executive Officer of GigaCloud. "Additionally, our GigaCloud Marketplace continued its impressive momentum across all key metrics, while simultaneously expanding its service offerings. Strategic investments in our fulfillment infrastructure in support of our expected growth and foreign exchange fluctuations caused a temporary decline in our net income margin for the first quarter. We are confident that these investments will better position GigaCloud to meet surging Marketplace buyer and seller demands while further enhancing efficiency. "The introduction of our Branding-as-a-Service, or BaaS, marked a pivotal moment for GigaCloud and the furniture industry as a whole, especially within our marketplace where furniture is a key category." Mr. Wu continued, "This program allows qualified sellers to leverage the well-established Christopher Knight Home brand to address the longstanding challenges associated with brand building in the furniture sector. We are observing widespread enthusiasm from Marketplace sellers as we prepare for inaugural transactions under the program in the second quarter. This strategic move underscores our commitment to empower Marketplace buyers and sellers and is an example of yet another addition to our service toolbox designed to foster stronger loyalty and engagement among Marketplace buyers and sellers. We are confident that our sustained growth will unlock even greater opportunities for our buyers and sellers, solidifying GigaCloud's position at the forefront of streamlining the global supply chain for large parcel merchandise through our Supplier Fulfilled Retailing model." Business Outlook The Company expects its total revenues to be between $265 million and $280 million in the second 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 Beijing/Hong Kong Time) on May 9, 2024. Participants who wish to join the call should pre-register here at https://register.vevent.com/register/BI2d6dde94a2864239b696c2e79bc831a5. 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 basic and 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: PondelWilkinson, Inc. Laurie Berman (Investors) – George Medici (Media) – GigaCloud Technology Inc UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands except for share data and per share data)     December 31,   March 31,     2023       2024   ASSETS       Current assets       Cash $ 183,283     $ 185,214   Restricted cash   885       894   Investments   —       10,075   Accounts receivable, net   58,876       59,400   Inventories   132,247       186,131   Prepayments and other current assets   17,516       18,940   Total current assets   392,807       460,654   Non-current assets       Operating lease right-of-use assets   398,922       459,033   Property and equipment, net   24,614       22,763   Intangible assets, net   8,367       7,820   Goodwill   12,586       12,586   Deferred tax assets   1,440       3,360   Other non-current assets   8,173       11,392   Total non-current assets   454,102       516,954   Total assets $ 846,909     $ 977,608           LIABILITIES AND SHAREHOLDERS' EQUITY       Current liabilities       Accounts payable (including accounts payable of VIEs without recourse to the Company               of $11,563 and nil as of December 31, 2023 and March 31, 2024, respectively) $ 69,757     $ 86,766   Contract liabilities (including contract liabilities of VIEs without recourse to the               Company of $736 and nil as of December 31, 2023 and March 31, 2024, respectively)   5,537       7,554   Current operating lease liabilities (including current operating lease liabilities of VIEs               without recourse to the Company of $1,305 and nil as of December 31, 2023 and March 31, 2024, respectively)   57,949       69,400   Income tax payable (including income tax payable of VIEs without recourse to the               Company of $3,644 and nil as of December 31, 2023 and March 31, 2024, respectively)   15,212       21,387   Accrued expenses and other current liabilities (including accrued expenses and other               current liabilities of VIEs without recourse to the Company of $2,774 and nil as of December 31, 2023 and March 31, 2024, respectively)   57,319       66,572   Total current liabilities   205,774       251,679   Non-current liabilities       Operating lease liabilities, non-current (including operating lease liabilities, non-current of VIEs without recourse to the Company of $553 and nil as of December 31, 2023 and March 31, 2024, respectively)   343,511       400,988   Deferred tax liabilities   3,795       3,683   Finance lease obligations, non-current   111       122   Non-current income tax payable   3,302       3,357   Total non-current liabilities   350,719