GigaCloud Technology Inc

ladies and gentlemen thank you for standing by welcome to giga cloud technologies first quarter 2022 earnings conference call during today's call all participants will be in the listen only mode this conference is being recorded today friday march 17 2023 joining us today from giga cloud technology at the company's founder Chairman of the Board of Directors and Chief Executive Officer, Larry Wu, the company's Chief Financial Officer, David Lau, and Dr. Iman Shroff, President of the company. On our call today, Larry will give you an overview of the company's performance, Iman will provide the details of the company's operational results, and David will share the details of the company's financial results. After that, we will conduct a question and answer session to take your questions. Before we continue, I'd like to remind you that some information discussed on this call will contain forelooking statements. These forelooking statements involve known and unknown risks and uncertainties. Although the company believes that the expectations expressed in these forelooking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and the company cautions investors that actual results may differ materially from the anticipated results and encourages investors to review other factors that may affect its future results in the company's registration statement and other filings with the FEC. This call includes discussion of certain non-GAAP financial measures, such as adjusted EBITDA. Please refer to the company's earnings press release for more information on the non-GAAP financial measures. With that, I'll now turn the call over to Larry the company's founder, Chairman of the Board of Directors, and Chief Executive Officer. Larry, please go ahead.

Thank you, operator, and everyone for joining GigaCloud's fourth quarter of the 2022 Earnings Conference call today. First of all, I would like to express how proud of the entire GigaCloud family I am for delivering another outstanding quarter. leading the way in transforming the industry with a pioneering business model and cutting edge technology. Looking back to 2022, we achieved a significant milestone by completing our IPO and becoming a U.S. listed company, while also improving our operational and financial metrics. As a part of our effort to create and ecosystem, we have prioritized enhancing our platform's user experience, optimizing operational efficiency, and technological upgrades. These initiatives are expected to strengthen our long-term market-leading position. We are glad to see our brand has a strong market demand from our loyal global customers on the marketplace. Please allow me to introduce our president, Dr. Iman Chirac. an insightful and innovative leader with intensive domestic and international management experience. As an industry veteran, Iman has proven ability to improve performance and productivity and profitability through effective implementation of process, programs, and policies. I would like to highlight that this is Iman's first time joining our earnings call, and he will be presenting the operational results of the company. Again, thank you for your continuous support to the company. Now, I would like to turn the call to Iman for closer operational view.

Thank you, Larry. Good morning, everyone. As we reflect back on the past year, we acknowledged that 2022 presented us with several challenges. including currency depreciation against US dollars in all the markets that we operate in, and the skyrocketing ocean shipping rates. Despite these difficulties, our team at GigaCloud puts forth significant efforts to navigate through this storm and drive our business forward. Through strategic planning, effective execution, and steadfast commitment, we have successfully overcome obstacles and achieved significant progress. Let's now walk through the operational results of the Giga Cloud. In the 12 months that ended December 31st, 2022, our Giga Cloud Marketplace GMB grew 25.1% year-over-year to $518.2 million. The platform saw a 46.6% year-over-year increase in active 3P sellers to 560. and a 16.5% year-over-year rise in active buyers to 4,156, with spending per active buyer also increasing by 7.4% year-over-year to $124,692, the 12 months that ended December 31st, 2022. Furthermore, three-piece seller Giga Cloud Marketplace, GMB, served 64.3% year-over-year to $257.7 million, representing approximately 50% of the total GigaCloud Marketplace GMV for the 12 months ended December 31st, 2022, serving as a strong indication of the impactful value we provide the industry. For the first time ever since the launch of the Marketplace, our GigaCloud 3P Seller GMV surpassed Giga Cloud's 1P GMB as a percentage of total marketplace GMB in Q4 2022. This underscores the growing dominance of 3P sellers on the marketplace, showcasing our scale and market recognition as a thriving 3P seller-dominated platform. As we look forward to 2023, our focus remains on executing our strategic plan with the goal of expanding our business enhancing profitability, and capitalizing on emerging opportunities. These impressive growth highlights our ongoing success as we remain committed to providing buyers and sellers with a robust and efficient ecosystem to connect and grow their businesses. We strive to keep up with the ever-changing market demands and expectations of our customers while also navigating our global, elevating our global brand recognition. Looking ahead, we are confident in our ability to maintain this upward trajectory. Now, I would like to turn the call over to our Chief Financial Officer, David, for a closer look at our financial results.