GigaCloud boosts share buyback program to $62 million

Published 02/04/2025, 21:18
GigaCloud boosts share buyback program to $62 million

EL MONTE, Calif. - GigaCloud Technology Inc (NASDAQ:GCT), a provider of B2B ecommerce technology solutions with a market capitalization of $590 million, has announced an increase in its share repurchase program. The Board of Directors has approved an additional $16 million allocation, raising the total authorization to $62 million, effective March 28, 2025. This expanded repurchase program is set to continue through August 28, 2025. According to InvestingPro data, the company maintains a healthy financial position with a strong free cash flow yield of 24% and liquid assets exceeding short-term obligations.

The company may repurchase its Class A ordinary shares using various methods, including open market transactions, privately negotiated transactions, and block trades, in accordance with SEC Rules 10b5-1 and 10b-18. The exact number of shares to be repurchased and the timing will be subject to share price, trading volume, market conditions, and other operational considerations.

GigaCloud has stated that it will fund the repurchases from its existing cash balance. The company’s leadership will periodically review the program and retains the right to alter, suspend, or discontinue it at any time.

GigaCloud Technology, which launched its GigaCloud Marketplace in January 2019, specializes in connecting manufacturers, especially in Asia, with resellers across the United States, Asia, and Europe. The platform provides an integrated solution for cross-border transactions, encompassing product discovery, payment processing, and logistics. GigaCloud’s service covers the transportation of goods from the manufacturer to the end customer for a fixed price. Initially focused on the global furniture market, the company has expanded into other categories, including home appliances and fitness equipment. The company’s expansion strategy has yielded impressive results, with revenue growing 65% in the last twelve months. For detailed insights into GigaCloud’s growth potential and comprehensive analysis, check out the full research report available on InvestingPro.

This press release includes forward-looking statements regarding future events, which involve risks and uncertainties. These statements are based on current expectations and projections about future events. GigaCloud cautions that these forward-looking statements are not guarantees of future performance and actual results may differ materially from those anticipated. Investors seeking deeper insights into GigaCloud’s financial health and growth prospects can access additional metrics and analysis through InvestingPro, which offers 13 key investment tips and comprehensive financial data for informed decision-making.

The information in this article is based on a press release statement from GigaCloud Technology Inc.

In other recent news, GigaCloud Technology reported its fourth-quarter 2024 earnings, revealing a slight miss on earnings per share (EPS) with an actual figure of $0.75, compared to the forecasted $0.82. Despite the EPS miss, the company saw a 21% year-over-year revenue growth, reaching $296 million for the quarter. For the full year, GigaCloud’s revenue exceeded $1.1 billion, marking a 65% increase from the previous year. The company also improved its liquidity by 65% to $300 million. However, GigaCloud’s first-quarter 2025 revenue guidance of between $250 million and $265 million fell short of Wall Street expectations, which were closer to $271.4 million. Analysts from firms like Lake Street Capital Markets have shown interest in the company’s future performance, especially concerning the integration of Noble House operations. GigaCloud’s management anticipates temporary softening in the second quarter but remains focused on profitable growth. Additionally, the company is actively looking at potential mergers and acquisitions to strengthen its market position.

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