EL MONTE, Calif. –Large parcel B2B e-commerce software solutions provider GigaCloud posted record gains in the fourth quarter of 2023, closing out a very strong year of growth that included two key acquisitions.
- Fourth quarter revenues totaled 244.7 million, nearly double the 125.6 million reported in 2022.
- Gross profits rose to $69.8 million in Q4 2023, a 161.4% increase from $26.7 million in Q4 2022. The gross margin also improved, reaching 28.5% in Q4 2023, up from 21.2% in Q4 2022.
- Net income for Q4 2023 was $35.6 million, a rise of 184.8% compared with $12.5 million in Q4 2022. The net income margin also increased 14.5% in Q4 2023 from 9.9% in Q4 2022.
- Cash-on-hand at the end of last year was $183.3 million, up from $143.5 million at the end of 2022.
- Adjusted EBITDA for Q4 2023 reached $43.8 million, marking a substantial increase of 188.2% compared with $15.2 million in Q4 2022.
- The company also saw substantial full-year improvement in total revenues, gross profit, net income and adjusted EBITDA.
- Total revenues for the full year of 2023 amounted to $703.8 million, up 43.6% from $490.1 million in the full year of 2022. Yearly net income rose 292.1% year-on-year to total $94.1 million.
The report reflects Gigacloud’s acquisitions late last year of Noble House Home Furnishings for $85 million and Wondersign (a cloud-based digital catalog solutions provider) for $10 million, both of which were funded with cash-on-hand. The Noble House acquisition expanded the company’s operations into Canada and provided it a new sourcing origin in India.
Founder, Chairman and CEO Larry Wu said two expansions were key to the strength of GigaCloud’s model and its future success. “The integration of Noble House and Wondersign marks as a significant step forward in our global expansion,” he said. “This move elevates our presence across diverse geographies, broadens our product portfolio with premium SKUs, integrates innovative technology and expands our business network. Together, these efforts, coupled with our organic growth, propel us towards a new era of industry leadership.”
GigaCloud President Iman Schrock noted that the record revenues solidified the company’s status as a major player in the B2B e-commerce industry.
“Our thriving marketplace validates the success of our supplier fulfilled retailing business model. This model unlocks a win-win situation for both suppliers and retailers: Retailers benefit from an asset-light approach, minimizing storage and operational costs while gaining access to our extensive product selection. This agility allows them to scale their businesses efficiently,” he said.