GigaCloud Technology Inc Announces Fourth Quarter and Year Ended December 31, 2024 Financial Results

Rhea-AI Summary

GigaCloud Technology (Nasdaq: GCT) reported its Q4 and full-year 2024 financial results, achieving a milestone of over $1 billion in annual revenues. For Q4 2024, total revenues increased 20.9% YoY to $295.8M, though net income decreased 12.9% to $31M with margins declining from 14.5% to 10.5%.

Full-year 2024 highlights include: revenues of $1,161.0M (+65.0% YoY), gross profit of $285.2M (+51.2% YoY), and net income of $125.8M (+33.7% YoY). The company's GigaCloud Marketplace showed strong growth with GMV increasing 68.9% YoY to $1,341.4M, while active buyers grew 85.7% to 9,306.

The company appointed Erica Wei as CFO and expects Q1 2025 revenues between $250-265M. Under its share repurchase program, GigaCloud has executed approximately $29M in share repurchases, with $23M during Q4 2024 and $6M subsequently.

Positive

• Record annual revenue exceeding $1B (+65.0% YoY)
• Marketplace GMV growth of 68.9% to $1.34B
• 85.7% increase in active buyers to 9,306
• Strong cash position of $303.1M (+64.5% YoY)
• 155% GMV growth in European market
• Debt-free balance sheet

Negative

• Q4 gross margin declined to 22.0% from 28.5% YoY
• Q4 net income decreased 12.9% YoY
• Q4 Adjusted EBITDA fell 29.5% YoY
• Full-year gross margin declined to 24.6% from 26.8%
• Net income margin decreased to 10.8% from 13.4% YoY

Record Total Revenues in 2024 Reach More Than $1 Billion

EL MONTE, Calif., March 03, 2025 (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 financial results for the fourth quarter and fiscal year ended December 31, 2024, including a milestone achievement of surpassing $1 billion in total annual revenues for the first time in 2024, and continued robust growth in GigaCloud Marketplace GMV.

Fourth Quarter 2024 Financial Highlights

• Total revenues of $295.8 million, increased 20.9% year-over-year.
• Gross profit of $65.0 million, decreased 6.9% year-over-year.
  Gross margin was 22.0%, compared to 28.5% in the fourth quarter of 2023.
• Net income of $31.0 million, decreased 12.9% year-over-year.         
  Net income margin was 10.5%, compared to 14.5% in the fourth quarter of 2023.
  Diluted EPS decreased 12.6% year-over-year to $0.76.   
• Adjusted EBITDA¹ decreased 29.5% year-over-year to $30.9 million.
  Adjusted EPS – diluted² decreased 29.9% year-over-year to $0.75.
• Cash, Cash Equivalents, Restricted Cash, and Investments totaled $303.1 million as of December 31, 2024, a 64.5% increase year-over-year.
  

Full Year 2024 Financial Highlights

• Total revenues of $1,161.0 million, increased 65.0% year-over-year.
• Gross profit of $285.2 million, increased 51.2% year-over-year.
  Gross margin was 24.6%, compared to 26.8% in 2023.
• Net income of $125.8 million, increased 33.7% year-over-year.
  Net income margin was 10.8%, compared to 13.4% in 2023.
  Diluted EPS increased 32.6% year-over-year to $3.05.        
• Adjusted EBITDA¹ increased 32.6% year-over-year to $156.9 million.
  Adjusted EPS – diluted² increased 31.8% year-over-year to $3.81.

Operational Highlights

• GigaCloud Marketplace GMV³ increased 68.9% year-over-year to $1,341.4 million for the 12 months ended December 31, 2024.
• 3P seller GigaCloud Marketplace GMV⁴ increased 62.8% year-over-year to $693.9 million for the 12 months ended December 31, 2024. 3P seller GigaCloud Marketplace GMV represented 51.7% of total GigaCloud Marketplace GMV for the 12 months ended December 31, 2024.
• Active 3P sellers⁵ increased 36.3% year-over-year to 1,111 for the 12 months ended December 31, 2024.
• Active buyers⁶ increased 85.7% year-over-year to 9,306 for the 12 months ended December 31, 2024.
• Spend per active buyer⁷ was $144,142 for the 12 months ended December 31, 2024.
  

“2024 was a landmark year for GigaCloud as we surpassed $1 billion in total revenues for the first time, a milestone that underscores the strength and resilience of our B2B Marketplace amid a challenging macroeconomic environment,” said Larry Wu, Founder, Chairman, and Chief Executive Officer. “This achievement reflects the growing recognition for our Supplier Fulfilled Retail (SFR) model and our continued success in expanding our platform, driving robust GMV performance. Our global diversification has been a key strength, with standout progress in Europe, which has experienced 155% GMV growth year over year, further validating the broad appeal for our solutions across diverse markets. Our expanding global footprint, deepening partnerships, and relentless focus on innovation continue to fuel our momentum and position us well for the long term. We remain confident in our ability to adapt and maintain our positive trajectory.

In addition, our Board has approved the appointment of Erica Wei as Chief Financial Officer after serving as Interim CFO since August 2024. She has played a key role in strengthening the Company’s financial strategy, leading compliance efforts, and enhancing financial reporting quality, which will be reflected in the upcoming 10-K. Her leadership will be essential as we continue to scale our business and drive long-term growth.”

“Our results reflect robust top-line performance and the strategic investments we are making to scale operations and position GigaCloud for long-term success,” said Erica Wei, Chief Financial Officer. “Despite a challenging macro environment, our ability to adapt and execute has kept us on a path of sustained, stable growth. At the same time, we are committed to enhancing shareholder value. Since our $46 million share repurchase authorization in September, we have executed approximately $29 million in share repurchases under a Rule 10b5-1 plan as of today. Our strong financial position of over $300 million in cash and cash equivalents, restricted cash, and short-term investments, while remaining debt-free, gives us the financial flexibility to continue investing in our platform, expanding globally, and driving sustained value for our shareholders.”

Business Outlook

The Company expects its total revenues to be between $250 million and $265 million in the first quarter of 2025. 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.

Share Repurchase Program

In June 2023, we announced that our board of directors approved a share repurchase program to repurchase up to US$25.0 million of our Class A ordinary shares over the next 12 months, which expired in June 2024. On September 3, 2024, we announced that our board of directors approved a new share repurchase program under which we may purchase up to $46.0 million of our Class A ordinary shares, par value $0.05, over a 12-month period. Under the share repurchase program, we may purchase our ordinary shares through various means, including open market transactions, privately negotiated transactions, block trades, any combination thereof or other legally permissible means. We may effect repurchase transactions in compliance with Rule 10b5-1 and Rule 10b-18 of the Securities Exchange Act of 1934, as amended, or the Exchange Act. The number of shares repurchased and the timing of repurchases will depend on a number of factors, including, but not limited to, price, trading volume and general market conditions, along with our working capital requirements, general business conditions and other factors. Our board of directors will review the share repurchase program periodically, and may modify, suspend or terminate the share repurchase program at any time. We plan to fund repurchases from our existing cash balance.

During the fourth quarter of 2024, we have repurchased 1,033,292 of our Class A ordinary shares at a total consideration of approximately $23 million. Subsequent to the fourth quarter of 2024, the Company has repurchased an aggregate of 283,889 Class A ordinary shares in the open market at a total consideration of approximately $6 million pursuant to a repurchase plan under Rule 10b5-1 of the Exchange Act.

Conference Call

The Company will host a conference call to discuss its financial results at 5:30 pm U.S. Eastern Time on March 3, 2025 (6:30 am Hong Kong Time on March 4, 2025). Participants who wish to join the call should pre-register here at https://s1.c-conf.com/diamondpass/10045735-6sh8hd.html. 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, 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. GigaCloud offers a 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, including 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 and non-recurring items. Adjusted EPS – diluted is a financial measure defined as our Adjusted EBITDA divided by our 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: ir@gigacloudtech.com

PondelWilkinson, Inc.

Laurie Berman (Investors) – lberman@pondel.com

George Medici (Media) – gmedici@pondel.com

GigaCloud Technology Inc UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands except for share data and per share data)
		December 31,
		2024				2023
ASSETS
Current assets
Cash and cash equivalents		$	259,759			$	183,283
Restricted cash			685				885
Investments			42,674				—
Accounts receivable, net			57,313				58,876
Inventories			172,489				132,247
Prepayments and other current assets			14,672				17,516
Total current assets			547,592				392,807
Non-current assets
Operating lease right-of-use assets			451,930				398,922
Property and equipment, net			29,498				24,614
Intangible assets, net			6,198				8,367
Goodwill			12,586				12,586
Deferred tax assets			10,026				1,440
Other non-current assets			12,645				8,173
Total non-current assets			522,883				454,102
Total assets		$	1,070,475			$	846,909
		2024				2023
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities
Accounts payable (including accounts payable of VIEs without recourse to the Company of $nil and $11,563 as of December 31, 2024 and 2023, respectively)		$	78,163			$	69,757
Contract liabilities (including contract liabilities of VIEs without recourse to the Company of $nil and $736 as of December 31, 2024 and 2023, respectively)			4,486				5,537
Current operating lease liabilities (including current operating lease liabilities of VIEs without recourse to the Company of $nil and $1,305 as of December 31, 2024 and 2023, respectively)			88,521				57,949
Income tax payable (including income tax payable of VIEs without recourse to the Company of $nil and $3,644 as of December 31, 2024 and 2023, respectively)			13,615				15,212
Accrued expenses and other current liabilities (including accrued expenses and other current liabilities of VIEs without recourse to the Company of $nil and $2,774 as of December 31, 2024 and 2023, respectively)			79,594				57,319
Total current liabilities			264,379				205,774
Non-current liabilities
Operating lease liabilities, non-current (including operating lease liabilities, non-current of VIEs without recourse to the Company of $nil and $553 as of December 31, 2024 and 2023, respectively)			395,235				343,511
Deferred tax liabilities			941				3,795
Finance lease obligations, non-current			382				111
Non-current income tax payable			4,321				3,302
Total non-current liabilities			400,879				350,719
Total liabilities		$	665,258			$	556,493
Commitments and contingencies
		2024				2023
Shareholders’ equity
Treasury shares, at cost (609,390 and 294,029 shares held as of December 31, 2024 and 2023, respectively)		$	(11,816	)		$	(1,594	)
Class A ordinary shares ($0.05 par value, 50,673,268 shares authorized, 32,878,735 and 31,738,632 shares issued as of December 31, 2024 and 2023, respectively, 32,269,345 and 31,455,148 shares outstanding as of December 31, 2024 and 2023, respectively)			1,643				1,584
Class B ordinary shares ($0.05 par value, 9,326,732 shares authorized, 8,076,732 and 9,326,732 shares issued and outstanding as of December 31, 2024 and 2023)			403				466
Additional paid-in capital			120,262				111,736
Accumulated other comprehensive income (loss)			(4,136	)			526
Retained earnings			298,861				177,698
Total shareholders’ equity			405,217				290,416
Total liabilities and shareholders’ equity		$	1,070,475			$	846,909

GigaCloud Technology Inc UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (In thousands except for share data and per share data)
	Three Months Ended December 31,								Year Ended December 31,
	2024				2023				2024				2023
Revenues
Service revenues	$	97,107			$	69,336			$	350,273			$	199,184
Product revenues		198,675				175,401				810,769				504,647
Total revenues		295,782				244,737				1,161,042				703,831
Cost of revenues
Services		78,188				57,291				284,951				161,215
Product sales		152,604				117,609				590,855				353,983
Total cost of revenues		230,792				174,900				875,806				515,198
Gross profit		64,990				69,837				285,236				188,633
Operating expenses
Selling and marketing expenses		18,041				14,004				70,686				41,386
General and administrative expenses		16,979				13,130				73,944				30,008
Research and development expenses		2,356				2,344				9,791				3,925
Gains (losses) on disposal of property and equipment		(20	)			3,236				193				3,236
Total operating expenses		37,356				32,714				154,614				78,555
Operating income		27,634				37,123				130,622				110,078
Interest expense		(29	)			(108	)			(256	)			(1,240	)
Interest income		2,849				1,293				9,405				3,304
Foreign currency exchange gains (losses), net		(754	)			4,239				(1,233	)			2,086
Government grants		8				438				37				911
Others, net		678				(137	)			2,039				(144	)
Income before income taxes		30,386				42,848				140,614				114,995
Income tax expense		573				(7,273	)			(14,806	)			(20,887	)
Net income	$	30,959			$	35,575			$	125,808			$	94,108
Net income attributable to ordinary shareholders		30,959				35,575				125,808				94,108
Foreign currency translation adjustment, net of nil income taxes		(715	)			232				(1,266	)			(278	)
Net unrealized gains (losses) on available-for-sale investments		(12	)			—				7				—
Intra-entity foreign currency transactions gain (loss)		(2,565	)			—				(2,565	)			—
Release of foreign currency translation reserve related to liquidation of subsidiaries		(838	)			—				(838	)			—
Total other comprehensive income (loss)		(4,130	)			232				(4,662	)			(278	)
Comprehensive Income	$	26,829			$	35,807			$	121,146			$	93,830
Net income per ordinary share
—Basic	$	0.76			$	0.87			$	3.06			$	2.31
—Diluted	$	0.76			$	0.87			$	3.05			$	2.30
Weighted average number of ordinary shares outstanding used in computing net income per ordinary share
—Basic		40,869,106				40,770,882				41,079,672				40,788,448
—Diluted		40,944,311				40,901,772				41,201,026				40,922,590

GigaCloud Technology Inc UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands)
	Year Ended December 31,
	2024				2023
Cash flows from operating activities:
Net income	$	125,808			$	94,108
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		8,524				2,873
Share-based compensation		16,825				2,503
Operating lease		29,282				2,485
Changes in accounts receivables, net		(234	)			(5,058	)
Changes in inventories		(46,875	)			(16,514	)
Changes in prepayments and other assets		(1,665	)			(9,249	)
Changes in accounts payable, accrued expenses and other current liabilities		38,188				46,258
Changes in contract liabilities		(992	)			1,473
Changes in income tax payable		(1,023	)			10,977
Changes in deferred income taxes		(11,462	)			398
Other operating activities		1,702				3,198
Net cash provided by operating activities		158,078				133,452
Cash flows from investing activities:
Cash paid for purchase of property and equipment		(15,536	)			(4,380	)
Cash received from disposal of property and equipment		2,103				462
Acquisitions, net of cash acquired		—				(86,629	)
Purchases of investments		(73,831	)			—
Sale and maturities of investments		31,845				—
Net cash used in investing activities		(55,419	)			(90,547	)
Cash flows from financing activities:
Repayment of finance lease obligations		(1,726	)			(2,212	)
Repayment of bank loans		—				(197	)
Repurchases of ordinary shares		(23,243	)			(1,594	)
Net cash used in financing activities		(24,969	)			(4,003	)
Effect of foreign currency exchange rate changes on cash and restricted cash		(1,414	)			190
Net increase in cash and restricted cash		76,276				39,092
Cash and restricted cash at the beginning of the year		184,168				145,076
Cash and restricted cash at the end of the year	$	260,444			$	184,168
Supplemental disclosure of cash flow information
Cash paid for interest expense		256				1,240
Cash paid for income taxes		26,301				9,512
Non-cash investing and financing activities:
Purchase of property and equipment under finance leases		767				—
Reversal of subscription receivable from ordinary shares		—				312
Fair value of assets acquired by acquisition		—				273,086
Cash paid for business combinations and asset purchases		—				87,568
Liabilities assumed by acquisition		—				(185,518	)

GigaCloud Technology Inc UNAUDITED RECONCILIATION OF ADJUSTED EBITDA (In thousands, except for per share data)
	Three Months Ended December 31,								Year Ended December 31,
	2024				2023				2024				2023
	(In thousands)
Net income	$	30,959			$	35,575			$	125,808			$	94,108
Add: Income tax expense		(573	)			7,273				14,806				20,887
Add: Interest expense		29				108				256				1,240
Less: Interest income		(2,849	)			(1,293	)			(9,405	)			(3,304	)
Add: Depreciation and amortization		2,271				1,723				8,524				2,873
Add: Share-based compensation expense		1,245				429				16,825				2,503
Add: Non-recurring items(1)		(180	)			—				128				—
Adjusted EBITDA	$	30,902			$	43,815			$	156,942			$	118,307

_____________________
(1)  One of our fulfillment centers in Japan experienced a fire in March 2024. The fire destroyed our inventories located within the fulfillment center. We recognized losses of $2.0 million as a result of the fire in 2024. Based on the provisions of our insurance policies, the gross losses were reduced by the insurance proceeds received $1.9 million from our insurance carrier for the claim. We do not believe such losses to be recurring or frequent in nature.

UNAUDITED RECONCILIATION OF ADJUSTED EPS – DILUTED
	Three Months Ended December 31,								Year Ended December 31,
	2024				2023				2024				2023
Net income per ordinary share – diluted	$	0.76			$	0.87			$	3.05			$	2.30
Adjustments, per ordinary share:
Add: Income tax expense		(0.01	)			0.18				0.36				0.51
Add: Interest expense		—				—				0.01				0.03
Less: Interest income		(0.07	)			(0.03	)			(0.23	)			(0.08	)
Add: Depreciation and amortization		0.05				0.04				0.21				0.07
Add: Share-based compensation expenses		0.02				0.01				0.41				0.06
Add: Non-recurring items(1)		—				—				—				—
Adjusted EPS – diluted	$	0.75			$	1.07			$	3.81			$	2.89
Weighted average number of ordinary shares outstanding - diluted		40,944,311				40,901,772				41,201,026				40,922,590

_____________________
(1)  One of our fulfillment centers in Japan experienced a fire in March 2024. The fire destroyed our inventories located within the fulfillment center. We recognized losses of $2.0 million as a result of the fire in 2024. Based on the provisions of our insurance policies, the gross losses were reduced by the insurance proceeds received $1.9 million from our insurance carrier for the claim. We do not believe such losses to be recurring or frequent in nature.

_____________________

¹ Adjusted EBITDA is a non-GAAP financial measure. For more information on the non-GAAP financial measure, please see the section of “Non-GAAP Financial Measures” and the table captioned “Unaudited Reconciliation of Adjusted EBITDA” set forth at the end of this press release.

² Adjusted EPS – diluted is a non-GAAP financial measure. For more information on the non-GAAP financial measure, please see the section of “Non-GAAP Financial Measures” and the table captioned “Unaudited Reconciliation of Adjusted EPS – diluted” set forth at the end of this press release.

³ GigaCloud Marketplace GMV means the total gross merchandise value of transactions ordered through our GigaCloud Marketplace including GigaCloud 3P and GigaCloud 1P, before any deductions of value added tax, goods and services tax, shipping charges paid by buyers to sellers and any refunds.

⁴ 3P seller GigaCloud Marketplace GMV means the total gross merchandise value of transactions sold through our GigaCloud Marketplace by 3P sellers, before any deductions of value added tax, goods and services tax, shipping charges paid by buyers to sellers and any refunds.

⁵ Active 3P sellers means sellers who have sold a product in GigaCloud Marketplace within the last 12-month period, irrespective of cancellations or returns.

⁶ Active buyers means buyers who have purchased a product in the GigaCloud Marketplace within the last 12-month period, irrespective of cancellations or returns.

⁷ Spend per active buyer is calculated by dividing the total GigaCloud Marketplace GMV within the last 12-month period by the number of active buyers as of such date.

FAQ

What were GigaCloud's (GCT) key financial achievements in 2024?

GigaCloud surpassed $1 billion in annual revenues, reaching $1,161.0M (+65.0% YoY), with net income of $125.8M (+33.7% YoY) and diluted EPS of $3.05.

How much did GigaCloud (GCT) spend on share repurchases in Q4 2024?

GigaCloud repurchased 1,033,292 Class A ordinary shares for approximately $23 million in Q4 2024.

What is GigaCloud's (GCT) revenue guidance for Q1 2025?

GigaCloud expects total revenues between $250 million and $265 million for Q1 2025.

How did GigaCloud's (GCT) marketplace performance change in 2024?

GigaCloud Marketplace GMV grew 68.9% to $1,341.4M, with active buyers increasing 85.7% to 9,306 and active 3P sellers rising 36.3% to 1,111.

What was GigaCloud's (GCT) cash position at the end of 2024?

Cash, Cash Equivalents, Restricted Cash, and Investments totaled $303.1 million, a 64.5% increase year-over-year.