GigaCloud Technology Inc Announces Financial Results for First Quarter Ended March 31, 2024

— Revenue Nearly Doubled and Hit Record High; Further Accelerated GigaCloud Marketplace Across all Metrics — EL MONTE, Calif., May 09, 2024 — 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 . 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: . 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: . 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” within the meaning of the federal securities laws, including Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements include, but are not limited to, GigaCloud’s expected total net revenues for the second quarter of 2024, the impact of the Company’s investments in its fulfillment infrastructure and the Company’s ability to meet surging Marketplace demands and enhance efficiency. These forward-looking statements are based on management’s current expectations, estimates, forecasts, and projections about our business and industry, our beliefs, and assumptions otherwise made in light of information currently available to us. The use of words such as “anticipate,” “believe,” “continue,” “estimate,” “expect,” “intend,” “may,” “plan,” “potential,” “predict,” “project,” “should,” “will,” “would,” and similar expressions, among others, generally identify forward-looking statements. These forward-looking statements are subject to risks, uncertainties, and assumptions including, but not limited to: the impact of the COVID-19 pandemic on our business and operations, global supply chain constraints, inflationary pressures and economic conditions; our ability to retain existing, and attract new, buyers and suppliers; our ability to effectively manage our growth; our ability to accurately forecast demand for our products and services and properly manage our inventory or avoid oversupply; any inadequacy in our supply chain infrastructure or fulfillment capability; our ability to maintain our brand and reputation; our ability to maintain or optimize our pricing structure or maintain our pricing advantages over competitors; our ability to optimize our marketplace business model; damage to our brand or reputation; our ability to improve our operational efficiencies and automation and reduce our costs; competition; payment-related risks; our ability to recruit, retain and motivate talented employees; risks of inventory management; risks related to our debt obligations; any inability to raise additional capital; our ability to maintain, protect, and enhance our intellectual property; cyber-security and privacy risks; risks related to governmental regulation and oversight; and risks related to our status as a foreign private issuer and emerging growth company. These and other important factors discussed in our filings with the Securities and Exchange Commission, or SEC, including those factors set forth under the caption “Risk Factors” in our Annual Report on Form 20-F filed with the SEC on April 28, 2024, could cause actual results to differ materially from those indicated by the forward-looking statements made in this press release. Any such forward-looking statements represent management’s estimates as of the date of this press release. While we may elect to update such forward-looking statements at some point in the future, we disclaim any obligation to do so, even if subsequent events cause our views to change.