GigaCloud Technology Inc. reported significant growth in its financial performance for the third quarter and the nine months ended September 30, 2024, compared to the same periods in 2023. Total revenues surged to $303.3 million for Q3 2024, a 70.2% increase from $178.2 million in Q3 2023. For the nine months, revenues reached $865.3 million, up 88.5% from $459.1 million in the prior year. This growth was driven by substantial increases in both service and product revenues, with service revenues rising to $100.4 million in Q3 2024 from $51.5 million in Q3 2023, and product revenues increasing to $202.9 million from $126.7 million.
Gross profit also saw a notable increase, climbing to $77.3 million in Q3 2024 from $48.9 million in Q3 2023, while gross profit for the nine months rose to $220.2 million from $118.8 million. However, the gross margin slightly decreased from 27.4% to 25.5% due to higher fulfillment costs.
Operating income for Q3 2024 was $40.7 million, compared to $31.7 million in Q3 2023, while net income increased to $40.7 million from $24.2 million in the same quarter of the previous year. For the nine-month period, net income rose to $94.8 million from $58.5 million, with net income per ordinary share increasing to $2.30 from $1.43.
The company’s total assets grew to $1,073.3 million as of September 30, 2024, up from $846.9 million at the end of 2023. Total liabilities also increased to $673.0 million from $556.5 million, while total shareholders’ equity rose to $400.4 million from $290.4 million.
Strategically, GigaCloud has been active in expanding its operations, including the acquisition of Noble House and Wondersign, which have contributed positively to its revenue streams. The company has also initiated a share repurchase program, allowing for the purchase of up to $46.0 million of Class A ordinary shares over the next 12 months.
Despite these positive developments, GigaCloud faced challenges, including losses from a fire at a fulfillment center in Japan, which resulted in recognized losses of $2.0 million, partially offset by insurance recoveries. The company anticipates increased transportation costs in Q4 2024 due to seasonal demand, which may impact profitability.
Overall, GigaCloud Technology Inc. has demonstrated robust growth in revenue and profitability, supported by strategic acquisitions and operational expansions, while navigating challenges related to operational disruptions and increased costs.
About GigaCloud Technology Inc
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