One of the supply chain’s newest publicly traded companies just announced a significant expansion.
GigaCloud Technology (NASDAQ: GCT) stated on Friday that it has partnered with an undisclosed last-mile and white-glove delivery firm to provide services throughout the continental United States. GigaCloud was listed on the Nasdaq Stock Exchange last month.
The company bills itself as a global B2B marketplace platform that connects large and bulky product suppliers to retailers. Its logistics network includes 20 warehouses totaling more than 4 million square feet across the United States, Germany, Japan, and the United Kingdom.
“We have deliberately placed ourselves with a partner carrier that can flex and adapt to the needs of GigaCloud,” said Aaron Murphy, the company’s newly appointed vice president of logistics. “We feel that this collaboration will fill a vacuum felt by many in the large and bulky environment while also adding value to our client base.”
As part of the transition, GigaCloud would combine many carriers into one and offer competitive pricing on its platform to marketplace users. It will also use its own logistics fleet, which now serves California and the Tri-State Area of New Jersey, New York, and Connecticut.
“We try to continuously expand our value proposition to large goods suppliers and resellers internationally,” said Iman Schrock, GigaCloud’s U.S. president. “There is no doubt this is a significant step forward for GigaCloud and the entire large and bulky market.”
GigaCloud, founded in Hong Kong in 2006, has only recently extended to the United States. Its principal manufacturing customers are in Asia, with resellers in the United States, Asia, and Europe.
On Friday, the corporation also revealed its financial results for the second quarter of 2022. Its overall sales were $124 million, an 11% increase over the previous year. However, net income dropped from $13.6 million in Q2 2021 to $6.1 million in the most recent quarter.
Adjusted earnings before interest, taxes, depreciation, and amortization fell from $16.6 million in the second quarter of 2021 to $7.8 million in the second quarter of 2022.
“Our Nasdaq listing in August signified a significant milestone for our firm and years of hard work, passion, and dedication from our shareholders, management team, and employees,” said Larry Lei Wu, GigaCloud’s founder, chairman, and CEO.
“Despite the macroeconomic hurdles we faced,” he continued, “we continued to generate solid year-over-year sales and GMV growth.” “We are proactively adapting our operations to meet these difficulties while remaining focused on our long-term objective of enhancing our skills to provide value for our clients.”
On Friday, 30 September afternoon, GigaCloud’s stock was down almost 11%.
