EL MONTE, Calif. – Large parcel B2B e-commerce software provider GigaCloud Technology reported revenue of $178.2 million for the third quarter, a 39.2% increase from last year and a $28 million increase from last quarter.
Gross profit more than doubled, rising 117% from last year to $48.9 million. Gross margin increased to 27.4% in the third quarter of 2023 from 17.6% in the third quarter of 2022. Cash on-hand rose to $214 million from $143.5 million last year. Adjusted EBITDA climbed 150% to $29.8 million.
GigaCloud also posted a strong second quarter, with revenue rising 23.5%. “Our third quarter results continue to impress, with a 39.2% year-over-year increase in revenue and our third consecutive quarter of record profitability,” said Larry Wu, CEO.
In September, GigaCloud became the stalking horse bidder to acquire furniture manufacturer and retailer Noble House Home Furnishings, which filed for bankruptcy Sept. 11. According to reports from Bankrupt Company News, the retailer had $74 million in funded debt and $65 million in trade debt. On Oct. 31, the purchase was completed for $85 million in cash.
In November, GigaCloud acquired Florida-based Wondersign, a provider of electronic product catalog systems for retailers, for $10 million in cash.
Neither of these acquisitions are reflected in third quarter earnings and will instead show up in the fourth quarter. Next quarter, the company expects revenue to be between $217 million and $223 million.
“The closing of the Noble House and Wondersign acquisitions highlights not only our strong profitability and cash position, but affirm our dedication to GigaCloud’s mission of delivering a seamless end-to-end shopping experience for our marketplace participants,” Wu continued. “The two acquisitions provide additional scale and momentum beyond our organic growth and present customers with a diverse, wider range of ways to connect and transact through cutting-edge technology solutions, aiming to elevate the reach and enhance customer stickiness within our marketplace ecosystem.”
“We take pride in our Q3 achievements, supported by our advanced technology and the success of our supplier fulfilled retailing business model,” said Iman Schrock, president. “The 40.8% yoy increase in Marketplace GMV underscore the expanding influence of the platform and the enduring loyalty of our customers. We’re confident that our unwavering commitment to innovation and excellence will continue to drive our success, deliver unparalleled value and growth to our customers.”