GigaCloud Technology Inc

Thank you all for standing by. Welcome to Giga Cloud Technology's second quarter 2024 earnings conference call. During today's call, all participants will be in listen-only mode. Joining us today from Giga Cloud Technology are the company's founder, chairman, and CEO, Larry Wu, its president, Dr. Iman Shrock, and its chief financial officer, David Lau. Iman will give a performance and operational overview, and David will share the financial results. After that, there will be a question and answer session. As a reminder, this conference call contains statements about future events and expectations that are forward-looking in nature and actual results may differ materially. Additionally, 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 direct comparable financial measures calculated and presented in accordance with GAAP, can be found in today's press release as well as on the company's website. With that, I would like to turn the call over to Larry for opening remarks. Please go ahead.

Thank you, operator, and welcome, everyone, to today's call. This quarter marked a significant milestone for our company as we achieved record revenue growth for the sixth consecutive quarter. Additionally, despite the industry-wide challenge, including 7% year-over-year decline in retail furniture sales in the first half of 2004 in the United States, and the elevated ocean shipping cost, our adjusted EBITDA increased substantially. These results underscore the strong demand for our marketplace and its ability to streamline the efficiency of the wholesale global supply chain. and while we connect the buyer and sellers of large non-standard items seamlessly around the globe. Our acquisition with Noble House and Wondersign and the launch of our first industry first, BaaS, or Branding as a Service, are already contributing to our success. In the second quarter, we successfully introduced Noble House related SKUs to our marketplace with the contributed approximately $57 million in GMV. The first half of this year has been extremely productive and we are driving continued progress, sustainable and profitable growth as a leader and the disruptor of the e-commerce technology solution. We were honored to be added to the Russell 2000 Index through their recent reconstitution. Now I will turn the call over to Iman to provide more color and our operational highlights.

Thanks, Larry. I'd like to add my welcome to those joining us today. We are happy to share that for the first time in our history, our Giga Cloud Marketplace GMB reached and surpassed $1 billion in the 12 months ended June 30th. Let's dig into that. For the trailing 12 months as of June 30, Giga Cloud Marketplace GMV increased by over 80%, eclipsing our first quarter growth by approximately 17 percentage points. This momentum was driven by a remarkable increase in our buyer and seller base. We welcomed 265 new sellers and 2,906 new buyers on a net basis, expanding our 3P seller community by nearly 40% to a total of 930, and our buyer base by a record-breaking 67% year over year to 7,257 at the end of the second quarter. Furthermore, average buyer spending climbed 8.3% to more than $151,000, demonstrating the increasing engagement our marketplace participants and the additional value our platform provides. By all metrics, our marketplace is thriving and we see many opportunities to continue this trajectory. Our average buyer spend as a whole decreased slightly over compared to Q1 due to the uptick in recent growth as we have observed a significant influx of over 900 buyers to our marketplace in the last quarter, whom we typically expect to start at lower initial trading volume. Average spend per buyer for participants that joined us prior to Q2 have continued to increase on a sequential basis. GMV in our 3P marketplace grew 76% from a year ago, and totaled approximately $572 million for the trailing 12 months and the June 30, 2024. 3P sellers accounted for 52.1% of our total Marketplace GMV for the same period. Combined with our one-piece strategy, we have the pieces in place to continue growing the Giga Cloud Marketplace while further improving efficiency and value for all participants. As I mentioned last quarter, our growth resulted from GigaCloud's highly robust technology suite that transforms and facilitates the way suppliers and retailers of large parcel and non-standard items connect and transact. Now, I'd like to give you a progress update on our BaaS off-rank, which was officially launched in the second quarter with our ecosystem brand, Christopher Knight Home. We built this unique solution to provide furniture suppliers with a streamlined and efficient way to build their brands, which has been a long-standing challenge throughout the industry. We have observed significant enthusiasm and interest in our BASC program since we announced it. We have successfully launched the initial pilot phase with a carefully selected group of eight marketplace sellers. the overall level of additional strong interest from both existing and new sellers has far exceeded our expectations. This early momentum reinforces our belief that BaaS will be a powerful tool in strengthening and expanding our service offerings, empowering marketplace participants with a diverse toolbox to drive growth and success. Last quarter, we discussed addressing accelerating demand through the expansion of our fulfillment footprint. Our global fulfillment network has 42 prime locations in five countries, comprising of more than 10 million square feet of fulfillment space. We are driving efficiencies and transactions among marketplace participants, and our established fulfillment centers across the U.S. are averaging over 90% utilization rate. And we are actively seeking additional space to accommodate continued rapid growth. Our integrations of Noble House and Wonder Sign are moving forward nicely and as planned. In the second quarter, we introduced Noble House-related SKUs to our marketplace, which contributed approximately $57 million of GMV in the three months ended June 30, 2024. Currently, only 5% of the SKUs are accessible to our external buyers, with the majority remaining with the original Noble House channels. Moving forward, we plan on gradually opening up these SKUs to external participants. As communicated previously, we expect to achieve break-even with Noble House later this year with anticipated profitability in the first half of 2025. We are extremely bullish on our marketplace and the opportunities ahead. Giga Cloud disrupted the B2B online marketplace with a unique business model that connects buyers and sellers of large parcel merchandise to efficiently grow their own businesses in a cost-effective way. Now, I will turn the call over to David for a more detailed review of our financial results. David?