GigaCloud Technology Inc

Ladies and gentlemen, thank you for standing by. Welcome to the GigaKide Technologies first quarter 2023 earnings conference call. During today's call, all participants will be in a listen-only mode. Joining us today from GigaKide Technology are the company's founder, chairman of the board, and chief executive officer, Larry Wu, the company's chief financial officer, David Lau, and the company's president, Dr. Iman Shrock. On today's call, Larry will give an overview of the company's performance, Iran will provide details of the company's operational results, and David will share the company's financial results. After that, we will conduct a question and answer session. As a reminder, this conference call contains statements about future events and expectations which are forward looking in nature. Statements on this call may be deemed as forward looking and actual results may differ materially. Today's call and webcast will include non-GAAP financial measures within the meaning of SEC Regulation G. When required, reconciliation of all non-GAAP financial measures to the most directly comparable financial measures calculated and presented in accordance with GAP can be found in today's press release, as well as the company website. With that, I will now turn the call over to Larry, the company's founder, chairman of the board, and chief executive officer. Larry, please go ahead.

Thank you, operator, and thanks to everyone for joining GigaCloud's first quarter of 2023 earnings conference call today. First and foremost, I want to express my pride in the entire Giga Club family for another remarkable quarter where we continued to revolutionize the industry with our innovative business model and state of art technology. We achieved our most profitable quarter ever with $15.9 million in net income, a 27.8% quarter over quarter increase and an impressive 236% increase year over year. And the $19.8 million in adjusted EBITDA, which represent a 30.7 quarter over quarter increase above our fourth quarter result last year. We also witnessed encouraging revenue growth that exceeded upper end of our projected outlook, which came in at the $127.8 million for Q1. versus an outlook range of $123 to $127 million for the quarter. We're confident of outcomes from our ongoing improvements further strengthening our position as a market leader. I would like to thank the entire Google Cloud team for their tireless work, as well as the stakeholders for their continued support for the company. Now I would like to turn the call over to Iman to go over some of the operational highlights from this quarter.

Thank you, Larry, and good morning, everyone. As Larry mentioned, we are pleased with our start to the year, including our record quarterly profit, which was driven largely by a widespread decline in ocean shipping rates and a corresponding increase in gross profits. Our gross margin was 23.1% for the first quarter, up a full 54% year over year. We believe that this moderation in ocean shipping rates should remain in place for at least the foreseeable future and expect our second quarter results to also benefit from this tailwind. Now, let's walk through some of the operational results. In the first quarter ended March 31st, Our Giga Cloud Marketplace GMB grew 26.3% year-over-year to $553.5 million. The platform saw a 46.8% year-over-year increase in active 3P sellers, ending the quarter at 602%. And as Larry just mentioned, we saw a 12.5% year-over-year rise in active buyers to end the quarter at $4,255, with spend per active buyer also increasing by 12.3% year-over-year to $130,083 in the 12 months ended March 31, 2023. Further, three-piece seller GigaCloud Marketplace GMB Group 62.2% year-over-year to $285.2 million, representing 51.5% of the total GigaCloud Marketplace GMV for the 12 months ended March 31st. As I mentioned on our last call, in the fourth quarter, our GigaCloud 3P seller GMV surpassed our 1P GMV as a percentage of total marketplace GMV. And that trend continued into the first quarter. While our 1P approach remains an integral part of our business strategy, ultimately, we believe that the growth of our 3P GMV will be very important to the scaling of our business. And we see positive momentum in our 3P growth rate continuing to drive a larger and more productive marketplace. We remain focused on building the best B2B marketplace in the world for buyers and sellers to come together and grow their respective businesses by improving our effectiveness and increasing the efficiency of our ecosystem. The success of our customers is ultimately the success of our own business. And we believe that we are well positioned to capitalize on this growing opportunity going forward. Our first quarter results are very encouraging and evidence that our ongoing investments into the platform should continue to provide positive, profitable results from our balanced growth strategy. Now, I would like to turn the call over to our CFO, David, for a closer look at our financial results.