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Dec 31, 2024

GigaCloud Q4 2024 Earnings Report

GigaCloud reported strong revenue growth in Q4 2024 but faced margin pressure.

Key Takeaways

GigaCloud Technology Inc. posted total revenues of $295.8 million in Q4 2024, a 20.9% increase year-over-year. However, net income declined by 12.9% to $31.0 million, and gross profit fell 6.9% due to a lower gross margin of 22.0%. Adjusted EPS decreased by 29.9% to $0.75, highlighting profitability challenges despite strong top-line growth.

Total revenue increased 20.9% year-over-year to $295.8 million.

Net income declined 12.9% to $31.0 million, with a 10.5% net income margin.

Gross profit fell 6.9% as gross margin dropped from 28.5% to 22.0%.

Cash and cash equivalents increased 64.5% to $303.1 million.

Total Revenue
$296M
Previous year: $245M
+20.9%
EPS
$0.75
Previous year: $0.87
-13.8%
Gross Profit
$65M
Previous year: $69.8M
-6.9%
Cash and Equivalents
$303M
Previous year: $183M
+65.4%

GigaCloud

GigaCloud

GigaCloud Revenue by Segment

Forward Guidance

GigaCloud expects Q1 2025 revenue between $250M and $265M, reflecting cautious optimism amid market uncertainties.

Positive Outlook

  • Projected Q1 2025 revenue of $250M–$265M, indicating continued growth.
  • Strong cash position of $303.1M, providing financial flexibility.
  • GigaCloud Marketplace GMV growth of 68.9% year-over-year.
  • Increasing adoption of Supplier Fulfilled Retail model driving engagement.
  • Strategic investments in global expansion expected to enhance revenue streams.

Challenges Ahead

  • Declining gross margins may continue impacting profitability.
  • Adjusted EBITDA fell 29.5% year-over-year, signaling cost pressures.
  • Macroeconomic uncertainties could affect demand in key markets.
  • Competition in cross-border B2B e-commerce remains strong.
  • Lower profitability metrics despite higher revenue growth.

Revenue & Expenses

Visualization of income flow from segment revenue to net income