Q2 2024 GigaCloud Technology Inc Earnings Call Transcript
Key Points
- GigaCloud Technology Inc (GCT) achieved record revenue growth for the sixth consecutive quarter.
- Adjusted EBITDA increased substantially despite industry-wide challenges.
- The acquisition of Noble House and Wondersign contributed approximately $57 million in GMV.
- GigaCloud Marketplace GMV surpassed $1 billion for the first time in the 12 months ended June 30.
- The company was added to the Russell 2000 Index through recent reconstitution.
- Average buyer spend decreased slightly compared to Q1 due to an influx of new buyers with lower initial trading volumes.
- Gross margin percentage contracted slightly due to increased delivery costs and temporary spikes in ocean freight rates.
- Total operating expenses increased significantly to $49 million from $17 million, driven by higher staffing costs and infrastructure development.
- Selling and marketing expenses rose to $19 million from $10 million, driven by higher staffing-related costs and advertising expenses.
- General and administrative expenses increased to $26 million from $7 million, primarily due to share-based awards and higher professional service fees.
Thank you all for standing by. Welcome to GigaCloud Technologies second quarter 2024 Earnings Conference Call. (Operator Instructions) Joining us today from GigaCloud Technology are the company's Founder, Chairman and CEO, Larry Wu; its President, Dr. Iman Schrock; and its Chief Financial Officer, David Lau.
Iman will give performance and operational overview, and David will share the financial results. After that, there will be a question-and-answer session.
As a reminder, this conference call contains statements about future events and expectations that are forward-looking in nature, and actual results may differ materially.
Additionally, today's call and webcast will include non-GAAP financial measures within the meaning of SEC Regulation G. When required, reconciliation of all non-GAAP financial measures to the most direct comparable financial measures calculated and presented in accordance with GAAP can be found in today's press release as well as on the company's website. With that, I would like to turn the call over to Larry for opening remarks. Please go ahead.
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