GigaCloud Technology Inc., a large-parcel merchandise B2B marketplace, has reached a key milestone: continuing profitability.
GigaCloud launched its B2B marketplace in January 2019 by focusing on the global furniture market. It has since expanded into such additional categories as home appliances and fitness equipment. The GigaCloud B2B marketplace debuted as a public company in the U.S. a year ago.
For the second quarter ended June 30, GigaCloud grew revenue to $153.1 million. That’s a 23.5% increase from $124.0 million in the second quarter of 2022. The company also posted its first consecutive quarterly profit. Second-quarter net income was $18.4, up from $6.1 million.
GigaCloud B2B marketplace
The marketplace company operates warehouses in four countries across North America, Europe, and Asia; it operates 21 warehouses worldwide. They total over 4 million square feet of storage space and cover 11 ports of destination, with over 10,000 annual containers.
GigaCloud says it uses artificial intelligence software to generate seller ratings and credit profiles through volume data. The AI software optimizes routing by organizing incoming orders and rebalancing inventory levels within the warehousing network, the company says.
And the GigaCloud B2B marketplace software platform includes flexible trading tools. With them, sellers can set prices based on quantities, delivery dates and fulfillment methods. Buyers have the option to purchase merchandise individually or in bulk, the company says.
“We are seeing our momentum continue to grow at both the 1P and 3P level in our GigaCloud marketplace as we execute on our strategy and further our market leading position as a trusted global B2B ecommerce brand,” says GigaCloud CEO Larry Wu.
GigaCloud earnings and revenue
For the first half ended June 30, GigaCloud Marketplace reported gross merchandise value of $607.5 million for all transactions, up 32.4% from $458.8 million a year earlier.
Total GigaCloud revenue was $280.9 million in the six months ended June 30, an increase of 18.8% from $236.5 million in the six months ended June 30, 2022. The increase was primarily due to greater market demand for large parcel merchandise, leading to increases in our GigaCloud Marketplace GMV, sales volume and number of sellers and buyers, the company says.
Percentage changes may not align exactly with dollar figures due to rounding. Check back for more earnings reports.
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