Why GigaCloud Technology Shares Are Up Today

GigaCloud Technology Inc GCT shares are trading higher by around 8% after it reported Q3 FY23 results.

Revenue rose 39.2% Y/Y to $178.2 million, beating the consensus of $163.8 million, led by higher market demand for large parcel merchandise.

GigaCloud Marketplace GMV rose 40.8% Y/Y at $684.8 million in the 12 months ended September 30, 2023.

In the 12 months ending September 30, active 3P sellers stood at 741 (+43.3% YY), and active buyers came in at 4,602 (+9.6% Y/Y).

Gross profit increased 117.3% Y/Y to $48.9 million, with margin expanded to 27.4% from 17.6% a year ago.

Adjusted EBITDA rose 150.4% Y/Y to $29.8 million in the quarter. EPS of $0.59 surpassed the consensus of $0.38.

As of September 30, 2023, cash stood at $214.0 million, and restricted cash was $0.9 million.

From the share repurchase program launch on June 14, 2023, to September 30, 2023, GCT bought around 215,000 shares for about $1.6 million.

Larry Wu, Founder, Chairman, and CEO, said, "Further, 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: For Q4, the company expects revenues of $217 million-$223 million vs. a consensus of $155.1 million. 

Also Read: 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.