GigaCloud Technology stock falls on earnings miss, weak guidance

Published 03/03/2025, 22:32
GigaCloud Technology stock falls on earnings miss, weak guidance

EL MONTE, Calif. - GigaCloud Technology Inc (NASDAQ:GCT) saw its shares tumble 8% after the B2B ecommerce solutions provider missed fourth quarter earnings and revenue estimates and issued disappointing guidance.

The company reported adjusted earnings per share of $0.75 for Q4, falling short of analyst expectations of $0.82. Revenue came in at $295.8 million, below the consensus estimate of $299.97 million, though it still represented a 20.9% increase YoY.

For the first quarter of 2025, GigaCloud projects revenue between $250 million and $265 million, significantly below analyst forecasts of $281 million.

Despite the earnings miss, GigaCloud achieved a milestone by surpassing $1 billion in total annual revenues for the first time in 2024. Full-year revenue jumped 65% to $1.16 billion, while net income rose 33.7% to $125.8 million.

"2024 was a landmark year for GigaCloud as we surpassed $1 billion in total revenues for the first time, a milestone that underscores the strength and resilience of our B2B Marketplace amid a challenging macroeconomic environment," said CEO Larry Wu.

The company’s gross margin contracted to 22% in Q4 from 28.5% a year earlier. Net income declined 12.9% to $31 million.

GigaCloud ended the year with $303.1 million in cash and investments, up 64.5% YoY. The company has repurchased approximately $29 million in shares under its $46 million buyback program announced in September.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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