Why GigaCloud Technology Shares Are Surging Today

GigaCloud Technology Inc. GCT shares are trading higher after the company reported better-than-expected fourth-quarter FY 2023 earnings and issued 2024 guidance.

Revenue rose 94.8% Y/Y to $244.7 million, beating the consensus of $224.2 million, led by higher market demand for large parcel merchandise.

GigaCloud Marketplace GMV stood at $794.4 million in the 12 months ended December 31, 2023, up 53.3% Y/Y. Active buyers stood at 5,010 in the 12 months ended December 31, 2023, an increase of 20.5% Y/Y.

Gross profit rose 161.4% Y/Y to $69.8 million, with margin increased to 28.5% from 21.2% a year ago. Adjusted EBITDA increased 188.2% Y/Y to $43.8 million. EPS of $0.87 beat the consensus of $0.58.

Operating cash flow stood at $133.5 million in the year. As of December 31, 2023, cash stood at $183.3 million, and restricted cash was $0.9 million.

Larry Wu, Founder, Chairman, and Chief Executive Officer, said, “The integration of Noble House and Wondersign marks as a significant step forward in our global expansion. This move elevates our presence across diverse geographies, broadens our product portfolio with premium SKUs, integrates innovative technology, and expands our business network.” 

Repurchase: The company did not repurchase any shares in the fourth fiscal quarter of 2023.

From the launch of the share repurchase program on June 14, 2023, to December 31, 2023, the company repurchased shares worth around $1.6 million. 

Outlook: The company expects revenues of $230 million-$240 million (vs. consensus of $210.2 million) in the first quarter of 2024.

Price Action: GCT shares are up 14.2% at $39.96 on the last check Friday.