GigaCloud Technology Posts 11% Revenue Growth In Q2 - GigaCloud Tech (NASDAQ:GCT)

GigaCloud Technology Inc GCT reported second-quarter FY22 sales growth of 11% year-on-year to $124 million.
The revenue increase was primarily due to an increase in service revenue from GigaCloud 3P and product revenue from GigaCloud 1P, partially offset by the decrease in product revenue from off-platform e-commerce.
The gross profit decreased 41.1% to $17 million and the gross margin contracted by 1,220 basis points to 13.7%.
The operating margin was 6.6%, and the operating income for the quarter fell 50.5% to $8.2 million.
The company held $49.2 million in cash and equivalents as of June 30, 2022.
Net income for the quarter declined 55% to $6.1 million.
Adjusted EBITDA fell 53% Y/Y to $7.8 million.
EPS of $0.15 fell from $0.43 last year.
Outlook: GigaCloud sees Q3 revenue of $122 million - $127 million.
Price Action: GCT shares are trading higher by 1.22% at $11.60 in premarket on the last check Friday.