One of supply chain’s newest publicly traded companies just launched a major expansion.
GigaCloud Technology (NASDAQ: GCT) on Friday announced that it has partnered with an unnamed last-mile and white-glove delivery company to provide services to the entire contiguous U.S. GigaCloud listed on the Nasdaq Stock Exchange last month.
The firm styles itself as a global B2B marketplace platform that specializes in connecting big and bulky product suppliers to retailers. Its logistics network includes 20 warehouses spanning more than 4 million square feet of space in the U.S., Germany, Japan and the U.K.
“We have strategically aligned ourselves with a partner carrier that can flex and adapt with GigaCloud’s needs,” said Aaron Murphy, the company’s newly hired vice president of logistics. “We believe this partnership will fill a void felt by many in the big and bulky environment and create value for our client base.”
As part of the move, GigaCloud will consolidate multiple carriers into one and leverage economical rates on its platform for marketplace users. It will also rely on its own logistics fleet, which services California and the Tri-State Area of New Jersey, New York and Connecticut.
“We strive to continually increase our value proposition to large goods suppliers and resellers globally,” added Iman Schrock, U.S. president of GigaCloud. “There is no doubt that this is a big step for GigaCloud and the big and bulky market as a whole.”
Founded in Hong Kong in 2006, GigaCloud only recently expanded to the U.S. Its primary manufacturing customers are located in Asia, with resellers in the U.S., Asia and Europe.
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The company on Friday also released its financials for the second quarter of 2022. It recorded total revenues of $124 million, up 11% from the previous year. Net income, however, fell from $13.6 million in Q2 2021 to $6.1 million in the most recent quarter.
Adjusted earnings before interest, taxes, depreciation and amortization also declined from $16.6 million in Q2 2021 to $7.8 million in Q2 2022.
“Our Nasdaq listing in August represented a key milestone for our company and years of hard work, commitment and dedication from our shareholders, management team and employees,” said Larry Lei Wu, founder, chairman and CEO of GigaCloud.
“Despite the macroeconomic challenges that we faced, we continued to deliver a solid year-over-year revenue and GMV growth,” he continued. “We are proactively adjusting our operations to adapt to these challenges and continue to focus on our long-term strategy by strengthening our capabilities to create value for our customers.”
Shares of GigaCloud were down around 11% as of Friday afternoon.