Cover Page
Cover Page - shares | 3 Months Ended | |
Mar. 31, 2024 | Apr. 23, 2024 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2024 | |
Document Transition Report | false | |
Entity File Number | 001-41454 | |
Entity Registrant Name | GIGACLOUD TECHNOLOGY INC | |
Entity Incorporation, State or Country Code | E9 | |
Entity Tax Identification Number | 00-0000000 | |
Entity Address, Address Line One | 4388 Shirley Avenue | |
Entity Address, City or Town | El Monte | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 91731 | |
Entity Address, Country | US | |
City Area Code | 1-626 | |
Local Phone Number | 912-8886 | |
Title of 12(b) Security | Class A ordinary shares, par value $0.05 per share | |
Trading Symbol | GCT | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | false | |
Entity Shell Company | false | |
Entity Central Index Key | 0001857816 | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q1 | |
Current Fiscal Year End Date | --12-31 | |
Amendment Flag | false | |
Common stock | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 40,990,115 | |
Class A ordinary shares | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 32,913,383 | |
Class B ordinary shares | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 8,076,732 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Current assets | ||
Cash | $ 185,214 | $ 183,283 |
Restricted cash | 894 | 885 |
Investments | 10,075 | 0 |
Accounts receivable, net | 59,400 | 58,876 |
Inventories | 186,131 | 132,247 |
Prepayments and other current assets | 18,940 | 17,516 |
Total current assets | 460,654 | 392,807 |
Non-current assets | ||
Operating lease right-of-use assets | 459,033 | 398,922 |
Property and equipment, net | 22,763 | 24,614 |
Intangible assets, net | 7,820 | 8,367 |
Goodwill | 12,586 | 12,586 |
Deferred tax assets | 3,360 | 1,440 |
Other non-current assets | 11,392 | 8,173 |
Total non-current assets | 516,954 | 454,102 |
Total assets | 977,608 | 846,909 |
Current liabilities | ||
Accounts payable (including accounts payable of VIEs without recourse to the Company of $11,563 and nil as of December 31, 2023 and March 31, 2024, respectively) | 86,766 | 69,757 |
Contract liabilities (including contract liabilities of VIEs without recourse to the Company of $736 and nil as of December 31, 2023 and March 31, 2024, respectively) | 7,554 | 5,537 |
Current operating lease liabilities (including current operating lease liabilities of VIEs without recourse to the Company of $1,305 and nil as of December 31, 2023 and March 31, 2024, respectively) | 69,400 | 57,949 |
Income tax payable (including income tax payable of VIEs without recourse to the Company of $3,644 and nil as of December 31, 2023 and March 31, 2024, respectively) | 21,387 | 15,212 |
Accrued expenses and other current liabilities (including accrued expenses and other current liabilities of VIEs without recourse to the Company of $2,774 and nil as of December 31, 2023 and March 31, 2024, respectively) | 66,572 | 57,319 |
Total current liabilities | 251,679 | 205,774 |
Non-current liabilities | ||
Operating lease liabilities, non-current (including operating lease liabilities, non-current of VIEs without recourse to the Company of $553 and nil as of December 31, 2023 and March 31, 2024, respectively) | 400,988 | 343,511 |
Deferred tax liabilities | 3,683 | 3,795 |
Finance lease obligations, non-current | 122 | 111 |
Non-current income tax payable | 3,357 | 3,302 |
Total non-current liabilities | 408,150 | 350,719 |
Total liabilities | 659,829 | 556,493 |
Commitments and contingencies | 0 | 0 |
Shareholders’ equity | ||
Treasury shares, at cost (294,029 and 292,637 shares held as of December 31, 2023 and March 31, 2024, respectively) | (1,594) | (1,594) |
Additional paid-in capital | 112,015 | 111,736 |
Accumulated other comprehensive income | 414 | 526 |
Retained earnings | 204,893 | 177,698 |
Total shareholders’ equity | 317,779 | 290,416 |
Total liabilities and shareholders’ equity | 977,608 | 846,909 |
Class A ordinary shares | ||
Shareholders’ equity | ||
Common stock issued | 1,648 | 1,584 |
Class B ordinary shares | ||
Shareholders’ equity | ||
Common stock issued | $ 403 | $ 466 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Accounts payable (including accounts payable of VIEs without recourse to the Company of $11,563 and nil as of December 31, 2023 and March 31, 2024, respectively) | $ 86,766 | $ 69,757 |
Contract liabilities (including contract liabilities of VIEs without recourse to the Company of $736 and nil as of December 31, 2023 and March 31, 2024, respectively) | 7,554 | 5,537 |
Current operating lease liabilities (including current operating lease liabilities of VIEs without recourse to the Company of $1,305 and nil as of December 31, 2023 and March 31, 2024, respectively) | 69,400 | 57,949 |
Income tax payable (including income tax payable of VIEs without recourse to the Company of $3,644 and nil as of December 31, 2023 and March 31, 2024, respectively) | 21,387 | 15,212 |
Accrued expenses and other current liabilities (including accrued expenses and other current liabilities of VIEs without recourse to the Company of $2,774 and nil as of December 31, 2023 and March 31, 2024, respectively) | 66,572 | 57,319 |
Operating lease liabilities, non-current (including operating lease liabilities, non-current of VIEs without recourse to the Company of $553 and nil as of December 31, 2023 and March 31, 2024, respectively) | $ 400,988 | $ 343,511 |
Treasury stock held (in shares) | 292,637 | 294,029 |
Variable interest entity, primary beneficiary | ||
Accounts payable (including accounts payable of VIEs without recourse to the Company of $11,563 and nil as of December 31, 2023 and March 31, 2024, respectively) | $ 0 | $ 11,563 |
Contract liabilities (including contract liabilities of VIEs without recourse to the Company of $736 and nil as of December 31, 2023 and March 31, 2024, respectively) | 0 | 736 |
Current operating lease liabilities (including current operating lease liabilities of VIEs without recourse to the Company of $1,305 and nil as of December 31, 2023 and March 31, 2024, respectively) | 0 | 1,305 |
Income tax payable (including income tax payable of VIEs without recourse to the Company of $3,644 and nil as of December 31, 2023 and March 31, 2024, respectively) | 0 | 3,644 |
Accrued expenses and other current liabilities (including accrued expenses and other current liabilities of VIEs without recourse to the Company of $2,774 and nil as of December 31, 2023 and March 31, 2024, respectively) | 0 | 2,774 |
Operating lease liabilities, non-current (including operating lease liabilities, non-current of VIEs without recourse to the Company of $553 and nil as of December 31, 2023 and March 31, 2024, respectively) | $ 0 | $ 553 |
Class A ordinary shares | ||
Common stock, par value (in USD per share) | $ 0.05 | $ 0.05 |
Common stock, shares authorized (in shares) | 50,673,268 | 50,673,268 |
Common stock, shares issued (in shares) | 33,003,452 | 31,738,632 |
Common stock, shares outstanding (in shares) | 32,720,692 | 31,455,148 |
Class B ordinary shares | ||
Common stock, par value (in USD per share) | $ 0.05 | $ 0.05 |
Common stock, shares authorized (in shares) | 9,326,732 | 9,326,732 |
Common stock, shares issued (in shares) | 9,326,732 | 9,326,732 |
Common stock, shares outstanding (in shares) | 8,076,732 | 8,076,732 |
Condensed Consolidated Statemen
Condensed Consolidated Statements Of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Revenues | ||
Revenues | $ 251,077 | $ 127,797 |
Cost of revenues | ||
Cost of revenues | 184,529 | 98,223 |
Gross profit | 66,548 | 29,574 |
Operating expenses | ||
Selling and marketing expenses | 14,580 | 6,896 |
General and administrative expenses | 15,389 | 4,150 |
Research and development expenses | 1,756 | 672 |
Losses on disposal of property and equipment | 6 | 0 |
Total operating expenses | 31,731 | 11,718 |
Operating income | 34,817 | 17,856 |
Interest expense | (81) | (113) |
Interest income | 1,609 | 590 |
Foreign currency exchange gains (losses), net | (2,709) | 1,385 |
Government grants | 6 | 0 |
Others, net | (322) | (21) |
Income before income taxes | 33,320 | 19,697 |
Income tax expense | (6,125) | (3,756) |
Net income | 27,195 | 15,941 |
Net income attributable to ordinary shareholders | 27,195 | 15,941 |
Foreign currency translation adjustment, net of nil income taxes | (112) | (194) |
Total other comprehensive income (loss) | (112) | (194) |
Comprehensive Income | $ 27,083 | $ 15,747 |
Net income per ordinary share | ||
Net income per ordinary share, basic (in USD per share) | $ 0.67 | $ 0.39 |
Net income per ordinary share, diluted (in USD per share) | $ 0.66 | $ 0.39 |
Weighted average number of ordinary shares outstanding used in computing net income per ordinary share | ||
Weighted average number of ordinary shares outstanding used in computing net income per ordinary share, basic (in shares) | 40,788,658 | 40,716,501 |
Weighted average number of ordinary shares outstanding used in computing net income per ordinary share, diluted (in shares) | 40,950,170 | 40,716,501 |
Total service revenues | ||
Revenues | ||
Revenues | $ 67,415 | $ 35,096 |
Cost of revenues | ||
Cost of revenues | 54,431 | 28,767 |
Product sales | ||
Revenues | ||
Revenues | 183,662 | 92,701 |
Cost of revenues | ||
Cost of revenues | $ 130,098 | $ 69,456 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements Of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Income Statement [Abstract] | ||
Other comprehensive income (loss), tax | $ 0 | $ 0 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements Of Changes In Shareholders' Equity - USD ($) $ in Thousands | Total | Re-designated ordinary shares from Class B to Class A | Treasury Shares | Subscription receivable from ordinary shares | Additional paid-in capital | Accumulated other comprehensive income | Retained earnings | Class A ordinary shares Common stock | Class A ordinary shares Common stock Re-designated ordinary shares from Class B to Class A | Class B ordinary shares Common stock | Class B ordinary shares Common stock Re-designated ordinary shares from Class B to Class A |
Beginning balance (in shares) at Dec. 31, 2022 | 4,624,039 | 31,357,814 | 9,326,732 | ||||||||
Beginning balance at Dec. 31, 2022 | $ 195,165 | $ (231) | $ (81) | $ 109,049 | $ 804 | $ 83,590 | $ 1,568 | $ 466 | |||
Net income | 15,941 | 15,941 | |||||||||
Share-based compensation, shares issued in period (in shares) | (4,565,467) | 58,612 | |||||||||
Share-based compensation | 252 | $ 229 | (231) | 251 | $ 3 | ||||||
Foreign currency translation adjustment, net of nil income taxes | (194) | (194) | |||||||||
Ending balance (in shares) at Mar. 31, 2023 | 58,572 | 31,416,426 | 9,326,732 | ||||||||
Ending balance at Mar. 31, 2023 | 211,164 | $ (2) | $ (312) | 109,300 | 610 | 99,531 | $ 1,571 | $ 466 | |||
Beginning balance (in shares) at Dec. 31, 2023 | 294,029 | 31,455,148 | 9,326,732 | ||||||||
Beginning balance at Dec. 31, 2023 | 290,416 | $ (1,594) | 111,736 | 526 | 177,698 | $ 1,584 | $ 466 | ||||
Net income | 27,195 | 27,195 | |||||||||
Share-based compensation, shares issued in period (in shares) | (1,392) | 2,172 | |||||||||
Share-based compensation | 280 | 280 | |||||||||
Warrants exercised (in shares) | 13,372 | ||||||||||
Exercise of warrants | 0 | (1) | $ 1 | ||||||||
Foreign currency translation adjustment, net of nil income taxes | (112) | (112) | |||||||||
Conversion of series (in shares) | 1,250,000 | (1,250,000) | |||||||||
Re-designated ordinary shares from Class B to Class A | $ 0 | $ 63 | $ (63) | ||||||||
Ending balance (in shares) at Mar. 31, 2024 | 292,637 | 32,720,692 | 8,076,732 | ||||||||
Ending balance at Mar. 31, 2024 | $ 317,779 | $ (1,594) | $ 112,015 | $ 414 | $ 204,893 | $ 1,648 | $ 403 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements Of Changes In Shareholders' Equity (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Statement of Stockholders' Equity [Abstract] | ||
Other comprehensive income (loss), tax | $ 0 | $ 0 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Cash flows from operating activities: | ||
Net income | $ 27,195 | $ 15,941 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Allowance for doubtful accounts | 63 | 55 |
Inventory write-down | 304 | 242 |
Deferred tax | (2,034) | (145) |
Share-based compensation | 275 | 247 |
Depreciation and amortization | 2,081 | 380 |
Loss from disposal of property and equipment | 6 | 0 |
Operating lease | 8,806 | 450 |
Interest income | 75 | 0 |
Unrealized foreign currency exchange gains | (686) | (419) |
Others | 1,859 | 0 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (632) | (2,705) |
Inventories | (56,047) | (2,344) |
Prepayments and other assets | (2,289) | (2,266) |
Accounts payable | 16,881 | 1,738 |
Contract liabilities | 2,045 | 125 |
Income tax payable | 6,552 | 3,697 |
Accrued expenses and other current liabilities | 11,005 | 5,350 |
Net cash provided by operating activities | 15,309 | 20,346 |
Cash flows from investing activities: | ||
Cash paid for purchase of property and equipment | (3,993) | (137) |
Cash received from disposal of property and equipment | 1,525 | 0 |
Purchases of investments | (10,000) | 0 |
Net cash used in investing activities | (12,468) | (137) |
Cash flows from financing activities: | ||
Repayment of finance lease obligations | (595) | (840) |
Repayment of bank loans | 0 | (76) |
Net cash used in financing activities | (595) | (916) |
Effect of foreign currency exchange rate changes on cash and restricted cash | (306) | (159) |
Net increase in cash and restricted cash | 1,940 | 19,134 |
Cash and restricted cash at the beginning of the period | 184,168 | 145,076 |
Cash and restricted cash at the end of the period | 186,108 | 164,210 |
Supplemental disclosure of cash flow information | ||
Cash paid for interest expense | 81 | 113 |
Cash paid for income taxes | $ 1,596 | $ 204 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2024 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Business GigaCloud Technology Inc (the “Company”), a limited liability company based in the Cayman Islands, with its subsidiaries (collectively referred to as the “Group”, “we” or “our”) are principally engaged in large parcel merchandise sales and the provision of ecommerce solutions for small cross-border business owners utilizing the Group’s online platform (“GigaCloud Marketplace”) and fulfillment centers primarily located in the United States, Japan and Europe. Organization The consolidated financial statements as of December 31, 2023 in the 2023 Form 10-K included the financial statements of the Company, its subsidiaries and consolidated VIEs. In January 2024, the Company terminated the Account Control Agreements with four of its consolidated VIEs, B.T.M TRAVEL AND TRADING LTD, COMHARBOR LIMITED, BRIHOME LIMITED which are located in United Kingdom (the “U.K.”), and Decobus Handel GmbH which is located in Germany. Concurrently with the termination, the Company acquired 100% equity interest of the four entities from its nominal shareholder with nominal consideration through capital contribution. As of March 31, 2024, the Group had no consolidated VIEs. The accompanying unaudited condensed consolidated financial statements as of March 31, 2024 included the financial statements of the Company and its subsidiaries. Basis of Presentation The accompanying unaudited condensed consolidated financial statements of the Group have been prepared in accordance with the instructions to Form 10-Q and do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Results of operations for interim periods are not necessarily indicative of results for the entire year. As a result, these unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the 2023 Form 10-K. There were no significant changes to our significant accounting policies as disclosed in the 2023 Form 10-K. Restricted Cash Cash that is restricted for withdrawal or use is reported separately on the unaudited condensed consolidated balance sheets. The Group’s restricted cash represents security deposits held in designated bank accounts for issuance of letters of guarantee. As of December 31, 2023 and March 31, 2024, the restricted cash, held by the Group at the United States financial institutions and denominated in U.S. Dollars, amounted to $885 thousand and $894 thousand, respectively. A reconciliation of cash and restricted cash in the unaudited condensed consolidated balance sheets to the amounts in the unaudited condensed consolidated statements of cash flows is as follows: December 31, 2023 March 31, 2024 (In thousands) Cash $ 183,283 $ 185,214 Restricted cash 885 894 Total cash and restricted cash in the unaudited condensed consolidated statements of cash flows $ 184,168 $ 186,108 Concentration and Risk Concentration of customers and suppliers No customers individually represented greater than 10.0% of total revenues of the Group for the three months ended March 31, 2023 and 2024. One customer individually represented greater than 10.0% of total accounts receivable balance of the Group as of December 31, 2023 and two customers individually represented greater than 10.0% of total accounts receivable balance as of March 31, 2024. December 31, 2023 March 31, 2024 proportion of total accounts proportion of total accounts Customer A 30.2 % 20.5 % Customer B * 13.0 % * Less than 10.0% of total accounts receivable balance as of the period end. During the three months ended March 31, 2024, one service provider individually represented 17.7% of total purchase, and no other vendor accounted for 10% or more of total purchases. Concentration of credit risk Financial instruments that potentially expose the Group to concentrations of credit risk consist principally of cash, restricted cash, investments, accounts receivable, and amounts due from third-party payment platforms. The Group’s investment policy requires cash, restricted cash and investments to be placed with high quality financial institutions and to limit the amount of credit risk from any one institution. The Group regularly evaluates the credit standing of the counterparties or financial institutions. Accounts receivable (Note 2), derived from product sales and provision of services on the Group’s GigaCloud Marketplace, as well as amounts due from third-party payment platforms derived from payment from individual customers collected by third-party payment platforms on behalf of the Group, are exposed to credit risk. The assessment of the counter parties’ creditworthiness is primarily based on past history of making payments when due and current ability to pay, taking into account information specific to the counter parties as well as pertaining to the economic environment in which the counter parties operate. Based on this analysis, the Group determines what credit terms, if any, to offer to each counter party individually. If the assessment indicates a likelihood of collection risk, the Group will not deliver the services or sell the products to or through the counter parties or require the counter parties to pay cash in time to secure payment. Segment Reporting The Group’s chief operating decision maker has been identified as the chief executive officer, who reviews consolidated results when making decisions about allocating resources and assessing performance of the Group. For the purpose of internal reporting and management’s operation review, the Group’s chief executive officer and management personnel do not segregate the Group’s business by revenue stream or geography. Management has determined that the Group has one operating segment. Long-lived assets consist of property and equipment and operating lease right-of-use assets. The geographic information for long-lived assets as of December 31, 2023 and March 31, 2024 was as follows: December 31, 2023 March 31, 2024 (In thousands) The United States $ 400,554 $ 457,527 Others 22,982 24,269 Total long-lived assets $ 423,536 $ 481,796 Revenues reported are attributed to geographic areas based on locations of the Company’s fulfillment centers, except for platform commission revenues which are attributed to Hong Kong, where the server of the GigaCloud Marketplace is located. Revenues by geographic regions for the three months ended March 31, 2023 and 2024 were as follows: Three Months Ended March 31, 2023 2024 Revenues by geographic regions: (In thousands) Service revenues $ 35,096 $ 67,415 Platform commission 2,302 3,598 Hong Kong 2,302 3,598 Ocean transportation service 2,771 9,801 United States 2,763 9,741 Others (1) 8 60 Warehousing service 5,657 9,327 United States 5,420 9,090 Others (1) 237 237 Last-mile delivery service 18,608 30,755 United States 18,009 28,488 Others (1) 599 2,267 Packaging service 2,868 6,279 United States 2,692 5,753 Others (1) 176 526 Others 2,890 7,655 United States 2,801 7,568 Others (1) 89 87 Product revenues 92,701 183,662 United States 70,505 140,321 Japan 10,191 9,941 Germany 9,340 29,273 Others (1) 2,665 4,127 Total revenues $ 127,797 $ 251,077 _____________________ Fair Value of Financial Instruments The fair values of cash, restricted cash, investments, receivables, payables approximated their carrying values because of the short-term nature of these instruments. As of March 31, 2024, our investments consisted of time deposit instruments that would be classified as Level 2 in the fair value hierarchy if they were measured at fair value in the financial statements. Recent Accounting Pronouncements In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, to update reportable segment disclosure requirements. The amendment is effective for fiscal years beginning after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted. The amendment should be applied retrospectively to all prior periods presented in the financial statements. ASU 2023-07 is effective for our annual periods beginning January 1, 2024, and for interim periods beginning January 1, 2025, with early adoption permitted. We are currently evaluating the potential effect that the updated standard will have on our consolidated financial statement disclosures. In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, amending existing income tax disclosure guidance, primarily requiring more detailed disclosure for income taxes paid and the effective tax rate reconciliation. For public business entities, the amendments in this ASU are effective for annual periods beginning after December 15, 2024. For entities other than public business entities, the amendments are effective for annual periods beginning after December 15, 2025. Early adoption permitted and can be applied on either a prospective or retroactive basis. The Group is currently evaluating the impact that the adoption of this standard will have on its consolidated financial statements and related disclosures. |
Accounts Receivables, Net
Accounts Receivables, Net | 3 Months Ended |
Mar. 31, 2024 | |
Accounts Receivable, after Allowance for Credit Loss [Abstract] | |
Accounts Receivables, Net | ACCOUNTS RECEIVABLE, NET Accounts receivable, net, consisted of the following: December 31, 2023 March 31, 2024 (In thousands) Accounts receivable $ 59,376 $ 59,963 Less: allowance for doubtful accounts (500) (563) Accounts receivable, net $ 58,876 $ 59,400 The movement of the allowance for doubtful accounts is as follows: Three Months Ended March 31, 2023 2024 (In thousands) Balance as of the beginning of the period $ (237) $ (500) Additions charged to bad debt expense (55) (63) Balance as of the end of the period $ (292) $ (563) |
Inventories
Inventories | 3 Months Ended |
Mar. 31, 2024 | |
Inventory Disclosure [Abstract] | |
Inventories | INVENTORIES Inventories consisted of the following: December 31, 2023 March 31, 2024 (In thousands) Products available for sale $ 92,059 $ 120,091 Goods in transit 40,188 66,040 Inventories $ 132,247 $ 186,131 |
Leases
Leases | 3 Months Ended |
Mar. 31, 2024 | |
Leases [Abstract] | |
Leases | LEASES The Group leases its office space, fulfillment centers and other facilities under non-cancelable operating leases with various expiration dates. The Group also has equipment that is leased under non-cancelable finance leases. The Group considers various factors such as market conditions and the terms of any renewal options that may exist to determine whether it will renew or replace the lease. In the event the Group is reasonably certain to exercise the option to extend a lease, the Group will include the extended terms in the operating lease right-of-use asset and operating lease liability. Certain fulfillment center storage shelves are leased under finance leases, which have a fixed lease term of three years from the lease commencement dates. Leases with an initial term of 12 months or less are not recorded on the balance sheet; the Group recognizes lease expense for these leases on a straight-line basis over the lease term. The gross amounts of assets and liabilities related to both operating and finance leases were as follows: December 31, 2023 March 31, 2024 Balance Sheet Caption (In thousands) Assets: Operating lease right-of-use assets Operating lease right-of-use assets $ 398,922 $ 459,033 Finance lease right-of-use assets Property and equipment, net 8,616 5,963 Total right-of-use assets $ 407,538 $ 464,996 December 31, 2023 March 31, 2024 Balance Sheet Caption (In thousands) Liabilities: Current: Operating lease liabilities Current operating lease liabilities $ (57,949) $ (69,400) Finance lease liabilities Accrued expenses and other current liabilities (1,666) (1,097) Non-current: Operating lease liabilities Operating lease liabilities, non-current (343,511) (400,988) Finance lease liabilities Finance lease obligations, non-current (111) (122) Total lease liabilities $ (403,237) $ (471,607) The components of lease cost were as follows: Three Months Ended 2023 2024 (In thousands) Operating lease cost $ 8,249 $ 21,948 Finance lease cost Amortization of right-of-use assets 167 131 Interest on lease liabilities 95 61 Short-term lease costs 64 118 Total $ 8,575 $ 22,258 Lease terms and discount rates are as follows: December 31, 2023 March 31, 2024 Weighted average remaining lease term (years): Operating leases 6.45 6.12 Finance leases 0.84 0.80 Weighted average discount rate: Operating leases 3.23 % 3.48 % Finance leases 18.18 % 17.52 % Future minimum lease payments as of March 31, 2024, including rental payments for lease renewal options the Group was reasonably certain to exercise, were as follows: Operating leases Finance leases (In thousands) Maturity of Lease Liabilities Nine months ended December 31, 2024 $ 60,571 $ 1,133 2025 93,661 76 2026 91,490 54 2027 86,637 9 2028 76,938 9 Thereafter 120,393 — Total lease payments 529,690 1,281 Less: imputed interest (59,302) (62) Present value of lease liabilities $ 470,388 $ 1,219 |
Ordinary Shares
Ordinary Shares | 3 Months Ended |
Mar. 31, 2024 | |
Equity [Abstract] | |
Ordinary Shares | ORDINARY SHARES On July 1, 2022, the Group entered into an agreement with Aegis Capital Corp. (the “Underwriter”), pursuant to which, the Group agreed to issue warrants to the Underwriter upon the completion of its IPO as additional compensation for the Underwriter’s services, which entitles the Underwriter to purchase up to 1.0% of Class A ordinary shares sold in the IPO in the par value of $0.05 per share, at the exercise price of 150% of the public offering price of $12.25 per share. In February 2024, the Underwriter exercised 29,400 of its warrants under cashless exercise for the Company to issue 13,372 Class A ordinary shares in aggregate. The shares were issued on February 16, 2024, February 23, 2024 and February 28, 2024. All warrants of the Underwriter have been exercised as of March 31, 2024. |
Share-Based Compensation
Share-Based Compensation | 3 Months Ended |
Mar. 31, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Share-based compensation | SHARE-BASED COMPENSATION Restricted shares (the “RS”) A summary of the Company’s restricted shares for the three months ended March 31, 2024 was presented below: Number of shares Weighted Outstanding as of January 1, 2024 10,545 $ 0.0015 Vested (668) 0.0015 Outstanding as of March 31, 2024 9,877 0.0015 Expect to be vested at March 31, 2024 9,877 $ 0.0015 As of March 31, 2024, unrecognized compensation expenses with trivial amount relating to the remaining 9,877 unvested restricted shares would cliff and cumulatively vested upon the satisfaction of the service condition. Restricted share units (the “RSU”) There were no RSU activities for the three months ended March 31, 2024. As of March 31, 2024, unrecognized compensation expenses of $67 thousand relating to the 159,773 unvested RSUs would be recognized in next twelve months. |
Income Tax
Income Tax | 3 Months Ended |
Mar. 31, 2024 | |
Income Tax Disclosure [Abstract] | |
Income Tax | INCOME TAX The Company’s provision for income taxes for the three months ended March 31, 2023 and 2024 was $3,756 thousand, and $6,125 thousand respectively, representing effective income tax rates of 19.1% and 18.4%, respectively. The difference between the PRC income tax rate of 25.0% and GigaCloud Technology’s overall income tax rate was primarily due to an income tax benefit on a favorable foreign rate differential and GigaCloud Suzhou’s certificate for Advanced Technology Service Enterprise (“ATSE”) qualification, which entitles the company to the preferential tax rate of 15%. |
Net Income Per Ordinary Share
Net Income Per Ordinary Share | 3 Months Ended |
Mar. 31, 2024 | |
Earnings Per Share [Abstract] | |
Net income per ordinary share | NET INCOME PER ORDINARY SHARE The following table sets forth the basic and diluted net income per ordinary share computation and provides a reconciliation of the numerator and denominator for the periods presented: Three Months Ended 2023 2024 (In thousands) Numerator: Net income $ 15,941 $ 27,195 Denominator: Weighted average number of ordinary shares outstanding - Basic 40,716,501 40,788,658 - Diluted 40,716,501 40,950,170 Net income per ordinary share attributable to ordinary shareholders - Basic $ 0.39 $ 0.67 - Diluted $ 0.39 $ 0.66 For the three months ended March 31, 2023, 58,572 unvested restricted shares with the exercise price of US$7.48 per share are not included in the calculation of dilutive net income per ordinary share under the treasury stock method, as their exercise prices are higher than the fair market value of the Company’s ordinary shares as of March 31, 2023, representing out-of-the-money impact from the holder’s perspective. For the three months ended March 31, 2024, the potential dilutive securities that have been included in the calculation of diluted net income per ordinary share are presented as follow: Three Months Ended 2023 2024 RSU — 153,902 RS — 7,610 |
Revenues
Revenues | 3 Months Ended |
Mar. 31, 2024 | |
Revenue from Contract with Customer [Abstract] | |
Revenues | REVENUES The Group’s revenues are disaggregated by major products/service lines and timing of revenue recognition. Detailed information is specified as follows: Three Months Ended March 31, Major products/services lines 2023 2024 (In thousands) Service revenues Platform commission $ 2,302 $ 3,598 Ocean transportation service 2,771 9,801 Warehousing service 5,657 9,327 Last-mile delivery service 18,608 30,755 Packaging service 2,868 6,279 Others 2,890 7,655 Total service revenues 35,096 67,415 Product revenues Product sales to B 12,801 51,434 Product sales to C 18,463 41,912 Off-platform ecommerce 31,264 93,346 GigaCloud 1P 61,437 90,159 Others — 157 Total product revenues 92,701 183,662 Revenues $ 127,797 $ 251,077 Three Months Ended March 31, Timing of revenue recognition 2023 2024 (In thousands) Revenue from goods or services transferred to customers over time $ 28,397 $ 54,615 Revenue from goods or services transferred to customers at a point in time 99,400 196,462 Revenues $ 127,797 $ 251,077 Contract Liabilities Changes in the contract liabilities balances for the three months ended March 31, 2023 and 2024 were as follows: Three Months Ended March 31, 2023 2024 (In thousands) Balance as of beginning of the period $ 2,001 $ 5,537 Revenue recognized from opening balance of contract liabilities (2,001) (5,537) Increase due to cash received 84,158 129,585 Revenue recognized from cash received during the period (82,035) (122,003) Foreign exchange effect 3 (28) Balance as of end of the period $ 2,126 $ 7,554 Contract liabilities relate to considerations received in advance for merchandise sales and services provided on GigaCloud Marketplace for which control of the services occur at a later point in time. The contract liabilities will be recognized as revenue when the Group fulfills its performance obligations to transfer the promised products or services to customers, which is expected to occur within one year. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and contingencies | COMMITMENTS AND CONTINGENCIES The Group leases offices and fulfillment centers under non-cancelable operating lease agreements. Future minimum lease payments under these noncancelable lease agreements with initial terms longer than three months are disclosed as maturity of lease liabilities in Note 4. On March 9, 2024, one of our fulfillment centers in Japan experienced a fire. The fire destroyed our inventories located within the fulfillment center. The Group recognized losses of $1.8 million as a result of the fire. Based on the provisions of our insurance policies, the gross losses have been reduced by the estimated insurance proceeds expected to be received from our insurance carrier. The Group has determined that partial recovery of the incurred losses is probable and therefore recorded an insurance receivable and insurance recovery of $1.5 million for the three-month period ended March 31, 2024. The Group is obligated to dispose of debris resulting from inventory damaged during the fire at the fulfillment center; we anticipate incurring costs associated with the disposal process. As of the date the unaudited condensed financial statements were issued, the Group is unable to reasonably estimate the extent of these costs. Consequently, we have not accrued a specific amount related to the disposal expenses associated with damaged inventory. We will continue to assess the situation and evaluate any developments that may impact the estimation of these costs in subsequent reporting periods. The Group may incur certain costs in connection with the reconstruction efforts of the leased fulfillment center following the fire. Notably, our insurance coverage extends to damages incurred by third parties. As of the date the unaudited condensed financial statements were issued, the Group is unable to reasonably estimate the extent of these costs. Consequently, no specific provision has been accrued in our financial statements related to the reconstruction efforts of the leased fulfillment center. We remain committed to monitoring the situation closely and will adjust our estimates accordingly as more information becomes available in subsequent reporting periods. As of March 31, 2024, the Group did not expect liabilities arising from reconstruction efforts, net of insurance recoveries, to materially adversely affect the Group’s unaudited condensed consolidated results of operations or its financial condition. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2024 | |
Subsequent Events [Abstract] | |
Subsequent Events | SUBSEQUENT EVENTS The Group evaluated subsequent events and transactions that occurred up to the date the unaudited condensed financial statements were issued. Based upon this review, the Group did not identify any subsequent events that would have required adjustment or disclosure in the unaudited condensed financial statements. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Pay vs Performance Disclosure | ||
Net Income (Loss) | $ 27,195 | $ 15,941 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Mar. 31, 2024 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2024 | |
Accounting Policies [Abstract] | |
Business and organization | Business GigaCloud Technology Inc (the “Company”), a limited liability company based in the Cayman Islands, with its subsidiaries (collectively referred to as the “Group”, “we” or “our”) are principally engaged in large parcel merchandise sales and the provision of ecommerce solutions for small cross-border business owners utilizing the Group’s online platform (“GigaCloud Marketplace”) and fulfillment centers primarily located in the United States, Japan and Europe. Organization The consolidated financial statements as of December 31, 2023 in the 2023 Form 10-K included the financial statements of the Company, its subsidiaries and consolidated VIEs. |
Basis of presentation | Basis of Presentation The accompanying unaudited condensed consolidated financial statements of the Group have been prepared in accordance with the instructions to Form 10-Q and do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Results of operations for interim periods are not necessarily indicative of results for the entire year. As a result, these unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the 2023 Form 10-K. There were no significant changes to our significant accounting policies as disclosed in the 2023 Form 10-K. |
Restricted cash | Restricted Cash Cash that is restricted for withdrawal or use is reported separately on the unaudited condensed consolidated balance sheets. The Group’s restricted cash represents security deposits held in designated bank accounts for issuance of letters of guarantee. As of December 31, 2023 and March 31, 2024, the restricted cash, held by the Group at the United States financial institutions and denominated in U.S. Dollars, amounted to $885 thousand and $894 thousand, respectively. A reconciliation of cash and restricted cash in the unaudited condensed consolidated balance sheets to the amounts in the unaudited condensed consolidated statements of cash flows is as follows: December 31, 2023 March 31, 2024 (In thousands) Cash $ 183,283 $ 185,214 Restricted cash 885 894 Total cash and restricted cash in the unaudited condensed consolidated statements of cash flows $ 184,168 $ 186,108 |
Concentration and risk | Concentration and Risk Concentration of customers and suppliers No customers individually represented greater than 10.0% of total revenues of the Group for the three months ended March 31, 2023 and 2024. One customer individually represented greater than 10.0% of total accounts receivable balance of the Group as of December 31, 2023 and two customers individually represented greater than 10.0% of total accounts receivable balance as of March 31, 2024. December 31, 2023 March 31, 2024 proportion of total accounts proportion of total accounts Customer A 30.2 % 20.5 % Customer B * 13.0 % * Less than 10.0% of total accounts receivable balance as of the period end. During the three months ended March 31, 2024, one service provider individually represented 17.7% of total purchase, and no other vendor accounted for 10% or more of total purchases. Concentration of credit risk Financial instruments that potentially expose the Group to concentrations of credit risk consist principally of cash, restricted cash, investments, accounts receivable, and amounts due from third-party payment platforms. The Group’s investment policy requires cash, restricted cash and investments to be placed with high quality financial institutions and to limit the amount of credit risk from any one institution. The Group regularly evaluates the credit standing of the counterparties or financial institutions. |
Segment reporting | Segment Reporting The Group’s chief operating decision maker has been identified as the chief executive officer, who reviews consolidated results when making decisions about allocating resources and assessing performance of the Group. For the purpose of internal reporting and management’s operation review, the Group’s chief executive officer and management personnel do not segregate the Group’s business by revenue stream or geography. Management has determined that the Group has one operating segment. Long-lived assets consist of property and equipment and operating lease right-of-use assets. The geographic information for long-lived assets as of December 31, 2023 and March 31, 2024 was as follows: December 31, 2023 March 31, 2024 (In thousands) The United States $ 400,554 $ 457,527 Others 22,982 24,269 Total long-lived assets $ 423,536 $ 481,796 Revenues reported are attributed to geographic areas based on locations of the Company’s fulfillment centers, except for platform commission revenues which are attributed to Hong Kong, where the server of the GigaCloud Marketplace is located. Revenues by geographic regions for the three months ended March 31, 2023 and 2024 were as follows: Three Months Ended March 31, 2023 2024 Revenues by geographic regions: (In thousands) Service revenues $ 35,096 $ 67,415 Platform commission 2,302 3,598 Hong Kong 2,302 3,598 Ocean transportation service 2,771 9,801 United States 2,763 9,741 Others (1) 8 60 Warehousing service 5,657 9,327 United States 5,420 9,090 Others (1) 237 237 Last-mile delivery service 18,608 30,755 United States 18,009 28,488 Others (1) 599 2,267 Packaging service 2,868 6,279 United States 2,692 5,753 Others (1) 176 526 Others 2,890 7,655 United States 2,801 7,568 Others (1) 89 87 Product revenues 92,701 183,662 United States 70,505 140,321 Japan 10,191 9,941 Germany 9,340 29,273 Others (1) 2,665 4,127 Total revenues $ 127,797 $ 251,077 |
Fair value of financial instruments | Fair Value of Financial Instruments The fair values of cash, restricted cash, investments, receivables, payables approximated their carrying values because of the short-term nature of these instruments. As of March 31, 2024, our investments consisted of time deposit instruments that would be classified as Level 2 in the fair value hierarchy if they were measured at fair value in the financial statements. |
Recent accounting pronouncements | Recent Accounting Pronouncements In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, to update reportable segment disclosure requirements. The amendment is effective for fiscal years beginning after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted. The amendment should be applied retrospectively to all prior periods presented in the financial statements. ASU 2023-07 is effective for our annual periods beginning January 1, 2024, and for interim periods beginning January 1, 2025, with early adoption permitted. We are currently evaluating the potential effect that the updated standard will have on our consolidated financial statement disclosures. In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, amending existing income tax disclosure guidance, primarily requiring more detailed disclosure for income taxes paid and the effective tax rate reconciliation. For public business entities, the amendments in this ASU are effective for annual periods beginning after December 15, 2024. For entities other than public business entities, the amendments are effective for annual periods beginning after December 15, 2025. Early adoption permitted and can be applied on either a prospective or retroactive basis. The Group is currently evaluating the impact that the adoption of this standard will have on its consolidated financial statements and related disclosures. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Accounting Policies [Abstract] | |
Summary of Reconciliation of Cash And Restricted Cash | A reconciliation of cash and restricted cash in the unaudited condensed consolidated balance sheets to the amounts in the unaudited condensed consolidated statements of cash flows is as follows: December 31, 2023 March 31, 2024 (In thousands) Cash $ 183,283 $ 185,214 Restricted cash 885 894 Total cash and restricted cash in the unaudited condensed consolidated statements of cash flows $ 184,168 $ 186,108 |
Summary of Accounts Receivable Balance | December 31, 2023 March 31, 2024 proportion of total accounts proportion of total accounts Customer A 30.2 % 20.5 % Customer B * 13.0 % * Less than 10.0% of total accounts receivable balance as of the period end. |
Schedule of Long-Lived Assets by Geographic Areas | The geographic information for long-lived assets as of December 31, 2023 and March 31, 2024 was as follows: December 31, 2023 March 31, 2024 (In thousands) The United States $ 400,554 $ 457,527 Others 22,982 24,269 Total long-lived assets $ 423,536 $ 481,796 |
Schedule of Revenue from External Customers by Geographic Areas | Revenues reported are attributed to geographic areas based on locations of the Company’s fulfillment centers, except for platform commission revenues which are attributed to Hong Kong, where the server of the GigaCloud Marketplace is located. Revenues by geographic regions for the three months ended March 31, 2023 and 2024 were as follows: Three Months Ended March 31, 2023 2024 Revenues by geographic regions: (In thousands) Service revenues $ 35,096 $ 67,415 Platform commission 2,302 3,598 Hong Kong 2,302 3,598 Ocean transportation service 2,771 9,801 United States 2,763 9,741 Others (1) 8 60 Warehousing service 5,657 9,327 United States 5,420 9,090 Others (1) 237 237 Last-mile delivery service 18,608 30,755 United States 18,009 28,488 Others (1) 599 2,267 Packaging service 2,868 6,279 United States 2,692 5,753 Others (1) 176 526 Others 2,890 7,655 United States 2,801 7,568 Others (1) 89 87 Product revenues 92,701 183,662 United States 70,505 140,321 Japan 10,191 9,941 Germany 9,340 29,273 Others (1) 2,665 4,127 Total revenues $ 127,797 $ 251,077 _____________________ |
Accounts Receivables, Net (Tabl
Accounts Receivables, Net (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Accounts Receivable, after Allowance for Credit Loss [Abstract] | |
Schedule of Accounts Receivable Net | Accounts receivable, net, consisted of the following: December 31, 2023 March 31, 2024 (In thousands) Accounts receivable $ 59,376 $ 59,963 Less: allowance for doubtful accounts (500) (563) Accounts receivable, net $ 58,876 $ 59,400 |
Schedule of Movement of the Allowance for Doubtful Accounts | The movement of the allowance for doubtful accounts is as follows: Three Months Ended March 31, 2023 2024 (In thousands) Balance as of the beginning of the period $ (237) $ (500) Additions charged to bad debt expense (55) (63) Balance as of the end of the period $ (292) $ (563) |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory | Inventories consisted of the following: December 31, 2023 March 31, 2024 (In thousands) Products available for sale $ 92,059 $ 120,091 Goods in transit 40,188 66,040 Inventories $ 132,247 $ 186,131 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Leases [Abstract] | |
Schedule of Assets and Liabilities Related to both Operating and Finance Leases | The gross amounts of assets and liabilities related to both operating and finance leases were as follows: December 31, 2023 March 31, 2024 Balance Sheet Caption (In thousands) Assets: Operating lease right-of-use assets Operating lease right-of-use assets $ 398,922 $ 459,033 Finance lease right-of-use assets Property and equipment, net 8,616 5,963 Total right-of-use assets $ 407,538 $ 464,996 December 31, 2023 March 31, 2024 Balance Sheet Caption (In thousands) Liabilities: Current: Operating lease liabilities Current operating lease liabilities $ (57,949) $ (69,400) Finance lease liabilities Accrued expenses and other current liabilities (1,666) (1,097) Non-current: Operating lease liabilities Operating lease liabilities, non-current (343,511) (400,988) Finance lease liabilities Finance lease obligations, non-current (111) (122) Total lease liabilities $ (403,237) $ (471,607) |
Schedule of Lease Cost | The components of lease cost were as follows: Three Months Ended 2023 2024 (In thousands) Operating lease cost $ 8,249 $ 21,948 Finance lease cost Amortization of right-of-use assets 167 131 Interest on lease liabilities 95 61 Short-term lease costs 64 118 Total $ 8,575 $ 22,258 |
Schedule of Lease Terms and Discount Rates | Lease terms and discount rates are as follows: December 31, 2023 March 31, 2024 Weighted average remaining lease term (years): Operating leases 6.45 6.12 Finance leases 0.84 0.80 Weighted average discount rate: Operating leases 3.23 % 3.48 % Finance leases 18.18 % 17.52 % |
Schedule of Future Minimum Lease Payments | Future minimum lease payments as of March 31, 2024, including rental payments for lease renewal options the Group was reasonably certain to exercise, were as follows: Operating leases Finance leases (In thousands) Maturity of Lease Liabilities Nine months ended December 31, 2024 $ 60,571 $ 1,133 2025 93,661 76 2026 91,490 54 2027 86,637 9 2028 76,938 9 Thereafter 120,393 — Total lease payments 529,690 1,281 Less: imputed interest (59,302) (62) Present value of lease liabilities $ 470,388 $ 1,219 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of the restricted shares | A summary of the Company’s restricted shares for the three months ended March 31, 2024 was presented below: Number of shares Weighted Outstanding as of January 1, 2024 10,545 $ 0.0015 Vested (668) 0.0015 Outstanding as of March 31, 2024 9,877 0.0015 Expect to be vested at March 31, 2024 9,877 $ 0.0015 |
Net Income per Ordinary Share (
Net Income per Ordinary Share (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Earnings Per Share [Abstract] | |
Schedule of basic and diluted net income per ordinary share | The following table sets forth the basic and diluted net income per ordinary share computation and provides a reconciliation of the numerator and denominator for the periods presented: Three Months Ended 2023 2024 (In thousands) Numerator: Net income $ 15,941 $ 27,195 Denominator: Weighted average number of ordinary shares outstanding - Basic 40,716,501 40,788,658 - Diluted 40,716,501 40,950,170 Net income per ordinary share attributable to ordinary shareholders - Basic $ 0.39 $ 0.67 - Diluted $ 0.39 $ 0.66 |
Schedule of Earnings Per Share, Diluted, by Common Class, Including Two Class Method | For the three months ended March 31, 2024, the potential dilutive securities that have been included in the calculation of diluted net income per ordinary share are presented as follow: Three Months Ended 2023 2024 RSU — 153,902 RS — 7,610 |
Revenues (Tables)
Revenues (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of revenues are disaggregated by major products and service lines and timing of revenue recognition | The Group’s revenues are disaggregated by major products/service lines and timing of revenue recognition. Detailed information is specified as follows: Three Months Ended March 31, Major products/services lines 2023 2024 (In thousands) Service revenues Platform commission $ 2,302 $ 3,598 Ocean transportation service 2,771 9,801 Warehousing service 5,657 9,327 Last-mile delivery service 18,608 30,755 Packaging service 2,868 6,279 Others 2,890 7,655 Total service revenues 35,096 67,415 Product revenues Product sales to B 12,801 51,434 Product sales to C 18,463 41,912 Off-platform ecommerce 31,264 93,346 GigaCloud 1P 61,437 90,159 Others — 157 Total product revenues 92,701 183,662 Revenues $ 127,797 $ 251,077 Three Months Ended March 31, Timing of revenue recognition 2023 2024 (In thousands) Revenue from goods or services transferred to customers over time $ 28,397 $ 54,615 Revenue from goods or services transferred to customers at a point in time 99,400 196,462 Revenues $ 127,797 $ 251,077 |
Schedule of changes in the contract liabilities | Changes in the contract liabilities balances for the three months ended March 31, 2023 and 2024 were as follows: Three Months Ended March 31, 2023 2024 (In thousands) Balance as of beginning of the period $ 2,001 $ 5,537 Revenue recognized from opening balance of contract liabilities (2,001) (5,537) Increase due to cash received 84,158 129,585 Revenue recognized from cash received during the period (82,035) (122,003) Foreign exchange effect 3 (28) Balance as of end of the period $ 2,126 $ 7,554 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Additional Information (Detail) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2024 USD ($) Segment company | Mar. 31, 2023 | Dec. 31, 2023 USD ($) | Jan. 31, 2024 company vIE | |
Accounting Policies [Line Items] | ||||
Number of account control agreements terminated | vIE | 4 | |||
Number of wholly-owned subsidiaries acquired | company | 4 | |||
Number of consolidated VIEs | company | 0 | |||
Restricted cash | $ | $ 894 | $ 885 | ||
Number of operating segments | Segment | 1 | |||
USD | The United States | ||||
Accounting Policies [Line Items] | ||||
Restricted cash | $ | $ 894 | $ 885 | ||
B.T.M Travel and Trading Ltd, Comharbor Limited, Brihome Limited and Decobus Handel GMBH | ||||
Accounting Policies [Line Items] | ||||
Business acquisition, percentage of voting interests acquired (in percent) | 100% | |||
Minimum | Purchases | Supplier concentration risk | One supplier | ||||
Accounting Policies [Line Items] | ||||
Concentration risk percentage | 17.70% | |||
Minimum | Purchases | Supplier concentration risk | No supplier | ||||
Accounting Policies [Line Items] | ||||
Concentration risk percentage | 10% | |||
No customer | Minimum | Revenue benchmark | Customer concentration risk | ||||
Accounting Policies [Line Items] | ||||
Concentration risk percentage | 10% | 10% | ||
One customer | Minimum | Accounts receivable | Customer concentration risk | ||||
Accounting Policies [Line Items] | ||||
Concentration risk percentage | 10% | |||
Two customer | Minimum | Accounts receivable | Customer concentration risk | ||||
Accounting Policies [Line Items] | ||||
Concentration risk percentage | 10% |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Summary of Reconciliation of Cash and Restricted Cash (Detail) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 | Mar. 31, 2023 | Dec. 31, 2022 |
Accounting Policies [Abstract] | ||||
Cash | $ 185,214 | $ 183,283 | ||
Restricted cash | 894 | 885 | ||
Total cash and restricted cash in the unaudited condensed consolidated statements of cash flows | $ 186,108 | $ 184,168 | $ 164,210 | $ 145,076 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Summary of Accounts Receivable Balance (Detail) - Revenue benchmark - Customer concentration risk | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Customer A | ||
Concentration risk percentage | 20.50% | 30.20% |
Customer B | ||
Concentration risk percentage | 13% |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Summary of Long-lived Assets by Segment (Detail) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Property, Plant and Equipment [Line Items] | ||
Total long-lived assets | $ 481,796 | $ 423,536 |
The United States | ||
Property, Plant and Equipment [Line Items] | ||
Total long-lived assets | 457,527 | 400,554 |
Others | ||
Property, Plant and Equipment [Line Items] | ||
Total long-lived assets | $ 24,269 | $ 22,982 |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies - Summary of Geographic information of Revenue by Segment (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Disaggregation of Revenue [Line Items] | ||
Revenues | $ 251,077 | $ 127,797 |
No region | Minimum | Revenue benchmark | Customer concentration risk | ||
Disaggregation of Revenue [Line Items] | ||
Concentration risk percentage | 10% | 10% |
Platform commission | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer, excluding assessed tax | $ 3,598 | $ 2,302 |
Platform commission | Hong Kong | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer, excluding assessed tax | 3,598 | 2,302 |
Ocean transportation service | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer, excluding assessed tax | 9,801 | 2,771 |
Ocean transportation service | The United States | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer, excluding assessed tax | 9,741 | 2,763 |
Ocean transportation service | Others | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer, excluding assessed tax | 60 | 8 |
Warehousing service | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer, excluding assessed tax | 9,327 | 5,657 |
Warehousing service | The United States | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer, excluding assessed tax | 9,090 | 5,420 |
Warehousing service | Others | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer, excluding assessed tax | 237 | 237 |
Last-mile delivery service | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer, excluding assessed tax | 30,755 | 18,608 |
Last-mile delivery service | The United States | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer, excluding assessed tax | 28,488 | 18,009 |
Last-mile delivery service | Others | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer, excluding assessed tax | 2,267 | 599 |
Packaging service | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer, excluding assessed tax | 6,279 | 2,868 |
Packaging service | The United States | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer, excluding assessed tax | 5,753 | 2,692 |
Packaging service | Others | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer, excluding assessed tax | 526 | 176 |
Others | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer, excluding assessed tax | 7,655 | 2,890 |
Others | The United States | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer, excluding assessed tax | 7,568 | 2,801 |
Others | Others | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer, excluding assessed tax | 87 | 89 |
Product sales | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer, excluding assessed tax | 183,662 | 92,701 |
Revenues | 183,662 | 92,701 |
Product sales | The United States | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer, excluding assessed tax | 140,321 | 70,505 |
Product sales | Japan | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer, excluding assessed tax | 9,941 | 10,191 |
Product sales | Germany | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer, excluding assessed tax | 29,273 | 9,340 |
Product sales | Others | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer, excluding assessed tax | 4,127 | 2,665 |
Total service revenues | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer, excluding assessed tax | 67,415 | 35,096 |
Revenues | $ 67,415 | $ 35,096 |
Accounts Receivables, Net - Sch
Accounts Receivables, Net - Schedule of Accounts Receivable Net (Detail) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 | Mar. 31, 2023 | Dec. 31, 2022 |
Accounts Receivable, after Allowance for Credit Loss [Abstract] | ||||
Accounts receivable | $ 59,963 | $ 59,376 | ||
Less: allowance for doubtful accounts | (563) | (500) | $ (292) | $ (237) |
Accounts receivable, net | $ 59,400 | $ 58,876 |
Accounts Receivables, Net - S_2
Accounts Receivables, Net - Schedule of Movement of the Allowance for Doubtful Accounts (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Accounts Receivable, after Allowance for Credit Loss [Abstract] | ||
Balance as of the beginning of the period | $ (500) | $ (237) |
Additions charged to bad debt expense | (63) | (55) |
Balance as of the end of the period | $ (563) | $ (292) |
Inventories - Schedule of Inven
Inventories - Schedule of Inventory (Detail) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Inventory Disclosure [Abstract] | ||
Products available for sale | $ 120,091 | $ 92,059 |
Goods in transit | 66,040 | 40,188 |
Inventories | $ 186,131 | $ 132,247 |
Leases - Additional information
Leases - Additional information (Details) | Mar. 31, 2024 |
Leases [Abstract] | |
Finance lease, term of contract | 3 years |
Leases - Schedule of Assets and
Leases - Schedule of Assets and Liabilities Related to both Operating and Finance Leases (Detail) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
ASSETS | ||
Operating lease right-of-use assets | $ 459,033 | $ 398,922 |
Finance lease right-of-use assets | 5,963 | 8,616 |
Total right-of-use assets | $ 464,996 | $ 407,538 |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Property and equipment, net | Property and equipment, net |
Current liabilities | ||
Operating Lease, Liability, Current | $ (69,400) | $ (57,949) |
Finance lease liabilities | $ (1,097) | $ (1,666) |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Accrued expenses and other current liabilities (including accrued expenses and other current liabilities of VIEs without recourse to the Company of $2,774 and nil as of December 31, 2023 and March 31, 2024, respectively) | Accrued expenses and other current liabilities (including accrued expenses and other current liabilities of VIEs without recourse to the Company of $2,774 and nil as of December 31, 2023 and March 31, 2024, respectively) |
Non-current liabilities | ||
Operating Lease, Liability, Noncurrent | $ (400,988) | $ (343,511) |
Finance lease liabilities | (122) | (111) |
Total lease liabilities | $ (471,607) | $ (403,237) |
Leases - Schedule of Lease Cost
Leases - Schedule of Lease Cost (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Operating lease cost | ||
Operating lease cost | $ 21,948 | $ 8,249 |
Finance lease cost | ||
Amortization of right-of-use assets | 131 | 167 |
Interest on lease liabilities | 61 | 95 |
Short-term lease costs | 118 | 64 |
Total | $ 22,258 | $ 8,575 |
Leases - Schedule of Lease Term
Leases - Schedule of Lease Terms and Discount Rates (Detail) | Mar. 31, 2024 | Dec. 31, 2023 |
Weighted average remaining lease term (years): | ||
Operating leases | 6 years 1 month 13 days | 6 years 5 months 12 days |
Finance leases | 9 months 18 days | 10 months 2 days |
Weighted average discount rate: | ||
Operating leases | 3.48% | 3.23% |
Finance leases | 17.52% | 18.18% |
Leases - Schedule of Future Min
Leases - Schedule of Future Minimum Lease Payments (Detail) $ in Thousands | Mar. 31, 2024 USD ($) |
Operating leases | |
Nine months ended December 31, 2024 | $ 60,571 |
2025 | 93,661 |
2026 | 91,490 |
2027 | 86,637 |
2028 | 76,938 |
Thereafter | 120,393 |
Total lease payments | 529,690 |
Less: imputed interest | (59,302) |
Present value of lease liabilities | 470,388 |
Finance leases | |
Nine months ended December 31, 2024 | 1,133 |
2025 | 76 |
2026 | 54 |
2027 | 9 |
2028 | 9 |
Thereafter | 0 |
Total lease payments | 1,281 |
Less: imputed interest | (62) |
Present value of lease liabilities | $ 1,219 |
Ordinary Shares - Additional In
Ordinary Shares - Additional Information (Detail) - $ / shares | 1 Months Ended | |||
Feb. 29, 2024 | Mar. 31, 2024 | Dec. 31, 2023 | Jul. 01, 2022 | |
Aegis Capital Corp, underwriter | ||||
Number of securities called by warrants or rights (in shares) | 29,400 | |||
Class A ordinary shares | ||||
Common stock, par value (in USD per share) | $ 0.05 | $ 0.05 | ||
Conversion to Class A shares issued (in shares) | 1,250,000 | |||
Class A ordinary shares | Aegis Capital Corp, underwriter | ||||
Percentage of exercise price to public offering price | 150% | |||
Issuance of Class A ordinary shares upon the IPO (in shares) | 13,372 | |||
Class A ordinary shares | Aegis Capital Corp, underwriter | IPO | ||||
Percentage of securities called by warrants or rights | 1% | |||
Common stock, par value (in USD per share) | $ 0.05 | |||
Public offering price (in USD per share) | $ 12.25 | |||
Class B ordinary shares | ||||
Common stock, par value (in USD per share) | $ 0.05 | $ 0.05 | ||
Conversion of Class B ordinary shares (in shares) | 1,250,000 |
Share-Based Compensation - Sche
Share-Based Compensation - Schedule of the restricted shares (Detail) - RS | 3 Months Ended |
Mar. 31, 2024 $ / shares shares | |
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |
Outstanding at January 1 (in shares) | shares | 10,545 |
Number of restricted shares vested during the year (in shares) | shares | (668) |
Outstanding at December 31 (in shares) | shares | 9,877 |
Number of restricted shares expected to be vest at December 31, 2023 (in shares) | shares | 9,877 |
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |
Outstanding, weighted average grant date fair value at January 1 (in USD per share) | $ / shares | $ 0.0015 |
Weighted average grant date fair value for restricted shares vested during the period (in USD per share) | $ / shares | 0.0015 |
Outstanding, weighted average grant date fair value at December 31 (in USD per share) | $ / shares | 0.0015 |
Weighted average grant date fair value for restricted shares expected to be vest at December 31, 2023 (in USD per share) | $ / shares | $ 0.0015 |
Share-Based Compensation - Addi
Share-Based Compensation - Additional information (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Dec. 31, 2023 | |
RS | ||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||
Number of restricted shares to be exercised (in shares) | 9,877 | 10,545 |
RSU | ||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||
Non-vested award, excluding option, cost not yet recognized | $ 67 | |
Restricted share units not exercisable (in shares) | 159,773 | |
Cost not yet recognized, period for recognition | 12 months |
Income Tax - Additional Informa
Income Tax - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Income Tax Disclosure [Abstract] | ||
Current income tax expense (benefit) | $ 6,125 | $ 3,756 |
Effective income tax rate, percentage | 18.40% | 19.10% |
Net Income per Ordinary Share -
Net Income per Ordinary Share - Schedule of the Basic and Diluted Net Income per Ordinary Share (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Numerator: | ||
Net income | $ 27,195 | $ 15,941 |
Denominator: | ||
Weighted average number of ordinary shares outstanding - basic (in shares) | 40,788,658 | 40,716,501 |
Weighted average number of ordinary shares outstanding - diluted (in shares) | 40,950,170 | 40,716,501 |
Net income per ordinary share attributable to ordinary shareholders - basic (in USD per share) | $ 0.67 | $ 0.39 |
Net income per ordinary share attributable to ordinary shareholders - diluted (in USD per share) | $ 0.66 | $ 0.39 |
Net Income per Ordinary Share_2
Net Income per Ordinary Share - Additional Information (Detail) - RS | 3 Months Ended |
Mar. 31, 2023 $ / shares shares | |
Conversion of Stock [Line Items] | |
Antidilutive securities excluded from the computation of earnings per share (in shares) | shares | 58,572 |
Exercise price of unvested restricted shares (in USD per share) | $ / shares | $ 7.48 |
Net Income per Ordinary Share_3
Net Income per Ordinary Share - Schedule of Dilutive Securities on Net Income Per Share (Details) - shares | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
RSU | ||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ||
Dilutive securities, effect on basic earnings per share (in shares) | 153,902,000 | 0 |
RS | ||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ||
Dilutive securities, effect on basic earnings per share (in shares) | 7,610,000 | 0 |
Revenues - Schedule of revenues
Revenues - Schedule of revenues are disaggregated by major products and service lines and timing of revenue recognition (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Disaggregation of Revenue [Line Items] | ||
Revenues | $ 251,077 | $ 127,797 |
Revenue from goods or services transferred to customers over time | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer, excluding assessed tax | 54,615 | 28,397 |
Revenue from goods or services transferred to customers at a point in time | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer, excluding assessed tax | 196,462 | 99,400 |
Off-platform ecommerce | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer, excluding assessed tax | 93,346 | 31,264 |
GigaCloud 1P | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer, excluding assessed tax | 90,159 | 61,437 |
Others | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer, excluding assessed tax | 157 | 0 |
Product sales to B | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer, excluding assessed tax | 51,434 | 12,801 |
Product sales to C | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer, excluding assessed tax | 41,912 | 18,463 |
Platform commission | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer, excluding assessed tax | 3,598 | 2,302 |
Ocean transportation service | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer, excluding assessed tax | 9,801 | 2,771 |
Warehousing service | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer, excluding assessed tax | 9,327 | 5,657 |
Last-mile delivery service | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer, excluding assessed tax | 30,755 | 18,608 |
Packaging service | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer, excluding assessed tax | 6,279 | 2,868 |
Others | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer, excluding assessed tax | 7,655 | 2,890 |
Total service revenues | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer, excluding assessed tax | 67,415 | 35,096 |
Revenues | 67,415 | 35,096 |
Total product revenues | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer, excluding assessed tax | 183,662 | 92,701 |
Revenues | $ 183,662 | $ 92,701 |
Revenues - Schedule of Changes
Revenues - Schedule of Changes in the Contract Liabilities (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | ||
Balance as of beginning of the period | $ 5,537 | $ 2,001 |
Revenue recognized from opening balance of contract liabilities | 5,537 | 2,001 |
Increase due to cash received | 129,585 | 84,158 |
Revenue recognized from cash received during the period | (122,003) | (82,035) |
Foreign exchange effect | (28) | 3 |
Balance as of end of the period | $ 7,554 | $ 2,126 |
Revenues - Additional Informati
Revenues - Additional Information (Detail) | 3 Months Ended |
Mar. 31, 2024 | |
Revenue from Contract with Customer [Abstract] | |
Contract with customer, timing of satisfaction of performance obligation and payment | one year |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 09, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | ||
Loss contingency, estimate of possible loss | $ 1.8 | |
Insurance recoveries | $ 1.5 |