Updated : March 20, 2024, 09:52AM IST
- GigaCloud Technology Inc (GCT) shares drop by 13.71% after a recent surge.
- Fourth-quarter earnings beat expectations with revenue of $244.74 million and earnings per share of 87 cents.
- GigaCloud’s Marketplace GMV and active third-party sellers show substantial growth, contributing to the company’s positive performance.
Shares of GigaCloud Technology Inc (GCT) are witnessing a significant decline, plummeting by 13.71% following a surge triggered by robust fourth-quarter earnings. The stock’s retreat comes after it reported better-than-expected financial results, propelling it to new heights in the market.
GigaCloud’s fourth-quarter earnings report exceeded analysts’ estimates, with the company recording a revenue of $244.74 million, surpassing the consensus estimate of $224.15 million. Additionally, GigaCloud reported quarterly earnings of 87 cents per share, outperforming expectations of 58 cents per share.
The company’s Marketplace Gross Merchandise Volume (GMV) saw a remarkable increase of 53.3%, reflecting strong demand for its services. Moreover, active third-party sellers and buyers experienced significant growth rates of 45.5% and 20.5%, respectively. The surge in spend per active buyer, up by 27.2%, further contributed to GigaCloud’s positive performance during the quarter.
Larry Wu, founder, chairman, and CEO of GigaCloud, expressed satisfaction with the company’s performance, stating, “The fourth quarter saw our highest quarterly revenue in the company’s history, up almost 95% year-over-year, representing an inflection point in the size and scale of GigaCloud.” He attributed this success to the integration of Noble House and Wondersign, marking significant milestones in the company’s global expansion efforts.
Despite the positive earnings report, GigaCloud’s stock faced a notable decline of 18.2% at $35.35 at the time of publication. Investors are closely monitoring the stock’s movement amidst market fluctuations and sector dynamics.
As investors navigate the volatility in GCT stock, attention is focused on the company’s future earnings performance and its ability to sustain growth momentum in a competitive market landscape.
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