HomeMarket NewsSmall CapsGigaCloud Technology's Revenue Soars, Stock Price Follows Suit

GigaCloud Technology’s Revenue Soars, Stock Price Follows Suit

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GigaCloud Technology IncΒ GCT is making waves with an 8% surge in its stock price following the release of its Q3 FY23 results.

Revenue skyrocketed by 39.2% year-over-year to $178.2 million, sailing past the consensus of $163.8 million. This impressive growth was driven by increasing market demand for large parcel merchandise.

The GigaCloud Marketplace’s Gross Merchandise Volume (GMV) also witnessed a substantial 40.8% surge year-over-year, reaching an impressive $684.8 million in the 12 months ending September 30, 2023.

The number of active 3P sellers has also seen a significant upswing at 741, a 43.3% jump year-over-year. The count of active buyers also grew to 4,602, marking a robust 9.6% year-over-year increase.

Gross profit spiked by an astounding 117.3% year-over-year to $48.9 million, with the margin expanding from 17.6% to 27.4% over the same period.

In a striking display of financial prowess, the adjusted EBITDA soared by 150.4% year-over-year to $29.8 million for the quarter. The earnings per share (EPS) also outshone expectations at $0.59, surpassing the consensus of $0.38.

The company’s strong financial footing is further underscored by its cash reserves, with $214.0 million in cash and an additional $0.9 million in restricted cash as of September 30, 2023.

During the period from the launch of its share repurchase program on June 14, 2023, to September 30, 2023, GCT demonstrated its confidence by repurchasing approximately 215,000 shares for about $1.6 million.

Larry Wu, Founder, Chairman, and CEO of GigaCloud, emphasized, β€œFurther, the closing of the Noble House and Wondersign acquisitions highlights not only our strong profitability and cash position, but affirm our dedication to GigaCloud’s mission of delivering a seamless end-to-end shopping experience for our marketplace participants.”

Outlook: Looking to the future, for Q4, the company anticipates revenues in the range of $217 million to $223 million, as opposed to a consensus of $155.1 million.Β 

Also Read:Β GigaCloud’s E-Commerce Success Story Is Fact or Fiction? Culper Research’s Short Report Raises Doubts

Price Action: GCT shares are up 8.13% at $10.51 premarket on the last check Friday.

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