Sun. Apr 14th, 2024



TLDR:

  • GigaCloud Technology Inc. shares surged after reporting better-than-expected fourth-quarter FY 2023 earnings and issuing 2024 guidance.
  • Revenue rose 94.8% year-over-year to $244.7 million, with strong performance in GigaCloud Marketplace GMV and active buyers.

In a significant development, GigaCloud Technology Inc. reported a surge in its shares following the release of its fourth-quarter FY 2023 earnings and 2024 guidance. The company’s revenue experienced a substantial increase of 94.8% year-over-year, reaching $244.7 million, surpassing the consensus estimate of $224.2 million. This growth was primarily attributed to the higher market demand for large parcel merchandise. Additionally, GigaCloud Marketplace Gross Merchandise Value (GMV) saw a growth of 53.3% year-over-year, standing at $794.4 million in the 12 months ended December 31, 2023. The number of active buyers also increased by 20.5% year-over-year, reaching 5,010 in the same period. The company’s gross profit rose significantly by 161.4% year-over-year to $69.8 million, with a margin increase from 21.2% to 28.5%. Furthermore, the adjusted EBITDA surged by 188.2% year-over-year to $43.8 million, and the earnings per share (EPS) of $0.87 outperformed the consensus estimate of $0.58.

GigaCloud Technology Inc. also highlighted the integration of Noble House and Wondersign as a crucial step in its global expansion strategy. This integration is aimed at broadening the company’s product portfolio, leveraging innovative technology, and expanding its business network across diverse geographies. The company did not repurchase any shares in the fourth fiscal quarter of 2023; however, it repurchased shares worth approximately $1.6 million during the period of its share repurchase program. Looking ahead, GigaCloud Technology Inc. anticipates revenues of $230 million to $240 million in the first quarter of 2024, surpassing the consensus expectation of $210.2 million.

As a result of these strong financial results and optimistic guidance, GigaCloud Technology Inc. shares soared by 14.2% to $39.96 on the last trading check. This surge reflects investor confidence in the company’s growth trajectory and strategic initiatives going forward.