GigaCloud Technology Inc (GCT) 2025 Q1 法說會逐字稿

Welcome to GigaCloud Technology's first-quarter 2025 earnings conference call. Joining us today from GigaCloud are the company's Founder, Chairman and CEO, Larry Wu; its President, Dr. Iman Schrock; and its Chief Financial Officer, Erica Wei. Larry will start with a brief introduction, Iman will provide an update on the company's operations, and Erica will discuss financial results for the quarter. After that, there will be a question-and-answer session.

歡迎參加 GigaCloud Technology 2025 年第一季財報電話會議。今天與我們一起參加 GigaCloud 活動的有該公司的創始人、董事長兼首席執行官 Larry Wu；其主席 Iman Schrock 博士；以及首席財務官 Erica Wei。Larry 將首先進行簡短的介紹，Iman 將介紹公司營運的最新情況，Erica 將討論本季的財務表現。之後，將會有一個問答環節。

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 will include non-GAAP measures within the meaning of SEC Regulation G. When required, a reconciliation of all non-GAAP financial measures to the most directly comparable financial measures calculated and presented in accordance with GAAP can be found in the press release issued today by GigaCloud as well as on the company's website.

提醒一下，本次電話會議包含有關未來事件和預期的前瞻性陳述，實際結果可能會有重大差異。此外，今天的電話會議將包括美國證券交易委員會 G 條例所定義的非公認會計準則 (non-GAAP) 指標。如有需要，所有非公認會計準則 (non-GAAP) 財務指標與按照公認會計準則 (GAAP) 計算和呈現的最直接可比財務指標的對帳可在 GigaCloud 今天發布的新聞稿以及公司網站上找到。

I would now like to turn the call over to Larry for his opening remarks. Please go ahead, sir.

現在我想把電話交給拉里來發表開場白。先生，請繼續。

Thank you, operator, and welcome, everyone, to our first earnings call of 2025. We started the year on solid footing with the year-over-year top-line growth of 8%, supported by disciplined operations and execution across the business despite a challenging industry environment.

謝謝接線員，歡迎大家參加我們 2025 年的第一次財報電話會議。儘管行業環境充滿挑戰，但我們在整個業務的嚴謹運營和執行的支持下，以穩健的基礎開啟了新的一年，營業額同比增長 8%。

Our B2B marketplace continued to expand with a 56% year-over-year GMV growth on a trailing 12-month basis as participants derived significant value from many efficiencies we bring to the supply chain for large parcel merchandise. While short-term headwinds persist, long-term fundamentals remain intact. Our marketplace and supplier fulfilled retailing model streamlines cross-border trade and positions us to capture the growing demand for efficient technology-enabled commerce, and we remain focused on growing GigaCloud in a disciplined and sustainable manner.

我們的 B2B 市場持續擴張，過去 12 個月 GMV 年成長 56%，參與者從我們為大包裹商品供應鏈帶來的諸多效率中獲得了巨大價值。儘管短期逆風持續存在，但長期基本面仍完好。我們的市場和供應商履行零售模式簡化了跨境貿易，使我們能夠滿足對高效技術支援商務日益增長的需求，並且我們將繼續專注於以規範和可持續的方式發展 GigaCloud。

A few things we have been focused on lately. We continue to execute our integration plan for Noble House. We have started the process of introducing new SKUs with simultaneously optimizing procurement costs through our large network of vendors. While we are still in the early stage of this effort, initial feedback we're seeing has been very encouraging. We are excited for the future as we gradually continue to introduce new, more profitable SKUs, while simultaneously retiring less profitable merchandise as we go.

我們最近關注的一些事情。我們將繼續執行 Noble House 的整合計畫。我們已經開始引進新的 SKU，同時透過我們龐大的供應商網路優化採購成本。雖然我們仍處於這項工作的早期階段，但我們看到的初步回饋非常令人鼓舞。我們對未來充滿期待，因為我們將逐步推出新的、利潤更高的 SKU，同時淘汰利潤較低的商品。

We remain focused on growing our marketplace outside of the US/Europe performance continues to be strong with a close to 80% year-over-year growth. We're also receiving increased interest from our 3P sellers for international markets, such as the EU, UK, and Japan.

我們仍專注於擴大美國/歐洲以外的市場，業績持續保持強勁，較去年同期成長近 80%。我們的第三方賣家對歐盟、英國和日本等國際市場的興趣也日益濃厚。

The launch of our Wonder app has been positively received with a promising traction, and we have welcomed a great new partner to our BaaS program as well. We are excited by the long-term potential of these initiatives and remain focused on disciplined execution.

我們的 Wonder 應用程式的推出獲得了積極的反響和良好的發展前景，同時我們也歡迎一位優秀的新合作夥伴加入我們的 BaaS 計劃。我們對這些舉措的長期潛力感到興奮，並將繼續專注於嚴格執行。

With that said, we recognize the recent tariff developments have introduced new complexities into global trade and the high level of uncertainty has caused disruptions to the supply chain. I want to take a moment to discuss this. Obviously, we cannot see into the future, and we do not know when and how things will play out exactly. With where tariffs currently are and the level of uncertainty, there's no doubt it poses a challenge for many, including us. But we are confident in our ability to manage the challenges to come.

話雖如此，我們認識到最近的關稅發展為全球貿易帶來了新的複雜性，高度的不確定性導致供應鏈中斷。我想花點時間來討論一下這個問題。顯然，我們無法預見未來，也不知道事情何時會如何發展。考慮到目前的關稅水平和不確定性程度，毫無疑問這對包括我們在內的許多人來說都是一個挑戰。但我們對自己應對未來挑戰的能力充滿信心。

I am a firm believer that the best time to prepare for a challenge is before it occurs, and we have been preparing for a long time by always being laser-focused on efficiency and agility. We designed the GigaCloud marketplace to be an open-ended, channel-agnostic and dynamic ecosystem that supports adaptation as quickly as the market changes.

我堅信，應對挑戰的最佳時機是在挑戰發生之前，我們已經準備了很長時間，始終專注於效率和敏捷性。我們將 GigaCloud 市場設計為一個開放式、與通路無關且充滿活力的生態系統，以支援隨著市場變化而快速適應。

For GigaCloud and our clients, this means the ability to pivot quickly in terms of both product sourcing and sales channels. The just-in-time approach towards inventory procurement brought by our SFR model also proved to be particularly valuable during times of uncertainty and rapid change.

對於 GigaCloud 和我們的客戶來說，這意味著能夠在產品採購和銷售管道方面快速轉變。我們的 SFR 模型所帶來的即時庫存採購方法在充滿不確定性和快速變化的時期也被證明特別有價值。

We expect the near-term disruptions for these macro and industry headwinds, but we are confident that the platform we have built positions us to capture outsized opportunities over the long run. As I have said before, periods of uncertainty reveal true strength. GigaCloud is resilient, adaptable, and experienced. The efficiency baked into our marketplace is precisely what help us and our partners navigate whatever comes next.

我們預計這些宏觀和產業逆風會在短期內造成乾擾，但我們相信，我們所建構的平台將使我們能夠在長期內抓住巨大的機會。正如我之前所說，不確定的時期會顯露出真正的力量。GigaCloud 具有彈性、適應性強且經驗豐富。我們市場中蘊含的效率正是幫助我們和我們的合作夥伴應對未來一切挑戰的關鍵。

Now, I will give the microphone to Iman to provide operational updates.

現在，我將把麥克風交給伊曼，讓他報告一下最新行動情況。

Thank you, Larry. I am pleased to share that our marketplace continues to grow even as we work through current headwinds. For the trailing 12 months ended March 31, 2025, GigaCloud marketplace GMV grew more than 56% to $1.4 billion as buyers and sellers of large parcel merchandise took advantage of the flexibility and efficiencies offered by our SFR business model. Our active 3P seller base grew more than 33% to 1,154, while GMV from this space increased 50% year over year to $734 million on a trailing 12-month basis. 3P sellers currently account for about 52% of our total marketplace GMV.

謝謝你，拉里。我很高興地告訴大家，儘管我們面臨當前的困難，但我們的市場仍在持續成長。截至 2025 年 3 月 31 日的過去 12 個月，由於大包裹商品的買家和賣家利用了我們的 SFR 業務模式提供的靈活性和效率，GigaCloud 市場 GMV 增長了 56% 以上，達到 14 億美元。我們的活躍 3P 賣家群體成長了 33% 以上，達到 1,154 人，而該領域的 GMV 在過去 12 個月內同比增長了 50%，達到 7.34 億美元。第三方賣家目前占我們整個市場 GMV 的 52% 左右。

Our buyer base is nearing 10,000 for the first time, growing more than 81% year over year. We again saw a small reduction in average buyer spend as we continue to onboard a large number of buyers who, as you are aware, generally start on our platform, trading with lower volumes and learning and testing.

我們的買家群體首次接近10,000人，較去年同期成長超過81％。我們再次看到平均買家支出略有減少，因為我們繼續吸收大量買家，正如您所知，這些買家通常從我們的平台開始，以較低的交易量進行學習和測試。

As Larry mentioned, we're driving ongoing momentum in Europe as a result of our focus on diversifying our business. GMV in this region grew over 80% for the first quarter. Looking ahead, we're doubling down on Europe. The fulfillment center we opened earlier this year in Bremen, Germany has strengthened our regional fulfillment footprint that supports our growth initiatives across continental markets. At the same time, the evolving tariff landscape is encouraging many buyers and sellers to diversify their sourcing and sales channels, and we're well-positioned to meet the demand.

正如拉里所提到的，由於我們專注於業務多元化，我們在歐洲的發展勢頭持續良好。該地區第一季的商品交易總額 (GMV) 增加了 80% 以上。展望未來，我們將加倍重視歐洲。我們今年稍早在德國不來梅開設的履行中心加強了我們的區域履行足跡，支持了我們在整個大陸市場的成長計劃。同時，不斷變化的關稅格局正在鼓勵許多買家和賣家實現採購和銷售管道多元化，我們已準備好滿足這一需求。

We're continuing to make progress on the Noble House integration. As a reminder, last quarter, we began Phase 3, which is all about refreshing the catalog to retire the underperforming SKUs and replace them with successful new ones.

我們在 Noble House 整合方面正在繼續取得進展。提醒一下，上個季度，我們開始了第三階段，該階段主要是刷新目錄，淘汰表現不佳的 SKU，並用成功的新 SKU 取而代之。

In the first quarter, we phased out over 400 legacy SKUs and launched more than 300 new ones, helping us keep the assortment fresh while improving inventory efficiency. Looking ahead, we have approximately 600 new SKUs currently in development with rollouts planned over the next two quarters.

在第一季度，我們淘汰了超過 400 個舊 SKU，並推出了超過 300 個新 SKU，幫助我們保持產品種類的新鮮度，同時提高庫存效率。展望未來，我們目前正在開發約 600 個新的 SKU，計劃在未來兩個季度推出。

This constant cycle of product development is critical to the long-term business health. The new SKUs we introduced this quarter are encouraged by the initial feedback from our partners. That said, given how early we are in the process, sales volume from these SKUs are still relatively low and will take time to scale.

這種持續的產品開發週期對於企業的長期健康至關重要。我們本季推出的新 SKU 受到合作夥伴初步回饋的鼓舞。話雖如此，考慮到我們處於早期階段，這些 SKU 的銷售量仍然相對較低，需要時間來擴大規模。

In general, three to six months are needed for each SKU to ramp up to healthy sales levels. As the catalog continues to evolve and adoption builds, we aim to begin Phase 4 of the integration towards the end of this year, which will focus on driving margin expansion across the channels.

一般來說，每個 SKU 需要三到六個月才能達到健康的銷售水準。隨著目錄的不斷發展和採用的不斷增加，我們計劃在今年年底開始整合的第四階段，重點是推動整個通路的利潤擴張。

Since rebranding and launching our Wonder app, we've been focused on refining the experience through a closed beta phase. While it's still early, we're encouraged by the initial traction. As we continue collecting user insights and advancing development, we look forward to broadening access and sharing further updates in the coming quarters ahead.

自從重新命名並推出 Wonder 應用程式以來，我們一直專注於透過封閉測試階段來完善體驗。雖然現在還為時過早，但最初的進展令我們感到鼓舞。隨著我們繼續收集用戶見解並推進開發，我們期待在未來幾季擴大存取權限並分享進一步的更新。

Importantly, not only is this app ideal for retail stores that are seeking a more efficient method to manage their sales teams, but it also provides suppliers a direct line into retail sales activity, enabling better engagement and outcomes at the point of sale.

重要的是，這款應用程式不僅適用於尋求更有效方法來管理銷售團隊的零售商店，而且還為供應商提供了直接參與零售銷售活動的管道，從而可以在銷售點實現更好的參與度和成果。

The app is another example of our innovation as we continue to bring added transparency and efficiency into the supply chain. On the BaaS front, we're excited to welcome Scott Living, the well-recognized and beloved home brand from Jonathan and Drew Scott, better known as the Scott Brothers, and widely recognized from their hit television series, Property Brothers. Their trusted brand presence and strong consumer following brings significant value to our platform and aligns well with our growth strategy.

這款應用程式是我們創新的另一個例子，我們將繼續為供應鏈帶來更高的透明度和效率。在 BaaS 方面，我們很高興歡迎 Scott Living，這是由喬納森和德魯·斯科特（更廣為人知的名字是斯科特兄弟）創立的知名且深受喜愛的家居品牌，因其熱門電視劇《房產兄弟》而廣為人知。他們值得信賴的品牌影響力和強大的消費者追隨者為我們的平台帶來了巨大的價值，並且與我們的成長策略非常契合。

As a reminder, under the BaaS program, marketplace sellers are able to sell and distribute select Christopher Knight Home and Scott Living branded products via a per SKU approval process. GigaCloud oversees product development, quality control, brand management, fulfillment, and promotional support, ensuring that all branded products meet and exceed industry standards.

提醒一下，在 BaaS 計劃下，市場賣家可以透過每個 SKU 審批流程銷售和分銷精選的 Christopher Knight Home 和 Scott Living 品牌產品。GigaCloud 負責監督產品開發、品質控制、品牌管理、履行和促銷支持，確保所有品牌產品都符合並超越行業標準。

Thank you again for joining us today. I'll turn things over to Erica for the discussion of our financials in the first quarter.

再次感謝您今天加入我們。我將把第一季的財務狀況交給 Erica 討論。

Thank you, Iman, and good afternoon, everyone. Before I jump into our results, please note that all figures I'll be discussing today have been rounded and comparisons are made against the prior-year period unless otherwise stated.

謝謝你，伊曼，大家下午好。在介紹我們的業績之前，請注意，我今天討論的所有數字均已四捨五入，並且與去年同期進行比較，除非另有說明。

Let's dive into this quarter's results. Total revenues grew 8% to $272 million, mainly due to increased market recognition and the growth of our GigaCloud marketplace.

讓我們深入了解本季的業績。總收入成長 8% 至 2.72 億美元，主要得益於市場認可度的提高和 GigaCloud 市場的成長。

Let's take a deeper look, starting with service sales. Service revenue grew by approximately 23% year-over-year to $94 million in Q1 2025, driven by continued growing demand from our existing and new customers. Service gross margins was 15.9%, a 3.5% decrease sequentially, primarily due to lowered ocean freight rates and lower last-mile delivery pricing.

讓我們深入了解一下，從服務銷售開始。受現有客戶和新客戶需求持續成長的推動，2025 年第一季服務營收年增約 23%，達到 9,400 萬美元。服務毛利率為 15.9%，比上一季下降 3.5%，主要原因是海運費下降和最後一英里交付價格下降。

As we discussed in the last earnings call, our fixed rate ocean contracts gives us an advantage during times of high ocean freight. As prices continue to come down and normalize during the first quarter of 2025, we stop seeing this kind of arbitrage margin. Compared to prior year, we have also begun pricing more competitively on the last-mile delivery front starting Q1 2025 as we position for long-term growth.

正如我們在上次收益電話會議上所討論的那樣，我們的固定費率海運合約使我們在海運費高漲時具有優勢。隨著 2025 年第一季價格持續下降並恢復正常，我們將不再看到這種套利幅度。與去年相比，從 2025 年第一季開始，我們也開始在最後一哩交付方面提供更具競爭力的定價，為長期成長做好準備。

Moving on to product sales. Global product revenue grew by approximately 2% year over year to $178 million for the quarter. We saw robust growth in key international markets led by Europe, which grew by over 70% year over year. Product revenue growth in our international markets was partially offset by the expected year-over-year decrease in our domestic US markets.

繼續進行產品銷售。本季全球產品營收年增約 2%，達到 1.78 億美元。我們看到以歐洲為首的主要國際市場實現了強勁成長，年成長超過 70%。我們國際市場的產品收入成長被美國國內市場預期的年減部分抵銷。

We saw a 17% year-over-year domestic decrease, which was a result of the controlled contraction associated with refreshing the Noble House product catalog, persistent industry headwinds in the US, and softness seen in some of our downstream partner channels. We expect to see this trend carry forward into the next quarter as we continue to deepen our presence in the European markets and execute on Phase 3 of the Noble House integration plan in the domestic US market. Product margin improved by 4% sequentially to 27.4%. The improvement is attributable to improved costing of goods sold during the first quarter.

國內銷售額較去年同期下降 17%，這是由於更新 Noble House 產品目錄帶來的可控收縮、美國持續的行業逆風以及部分下游合作夥伴管道的疲軟所致。隨著我們繼續深化在歐洲市場的影響力並在美國國內市場實施 Noble House 整合計劃的第三階段，我們預計這一趨勢將延續到下個季度。產品利潤率較上季提高 4%，達到 27.4%。這一改善歸因於第一季銷售商品成本的改善。

As we discussed during our last call, high capitalized cost goods procured during the peak of high ocean freight in 2024 had compressed our Q4 product margins. As we had less of these goods left to move through during Q1 of 2025, product margins have correspondingly seen recovery. In addition, as we move away from the holiday season surcharges, ground delivery fees have also decreased, resulting in improved margins. Overall, our gross margin was 23.4% for Q1 2025, a sequential improvement of 1.4% from the fourth quarter of 2024. Total operating expenses was 13% of total revenue, largely in line with last quarter and last year quarter.

正如我們在上次電話會議中所討論的那樣，2024 年海運費高峰期採購的高資本成本商品壓縮了我們第四季度的產品利潤率。由於 2025 年第一季剩餘待售商品減少，產品利潤率也相應回升。此外，隨著我們取消假日附加費，地面運輸費用也隨之降低，從而提高了利潤率。整體而言，2025 年第一季我們的毛利率為 23.4%，較 2024 年第四季較上季提高 1.4%。總營運費用佔總收入的 13%，與上一季和去年同期基本持平。

Breaking that down, we saw slightly higher selling and marketing expenses at 6.8% of total revenue compared to 6.1% and 5.8% in prior quarter and prior year quarter, respectively, as we saw higher off-platform to see sales as a percentage of total revenue this quarter. G&A expenses fell to 5.3% of total revenue from 6% as we continue to focus on gaining efficiency as we grow.

具體來說，我們發現銷售和行銷費用略有上升，佔總收入的 6.8%，而上一季和去年同期分別為 6.1% 和 5.8%，因為我們發現本季平台外銷售額佔總收入的百分比更高。由於我們在發展過程中持續專注於提高效率，一般及行政費用佔總收入的比例從 6% 降至 5.3%。

Net income for the first quarter was $27 million, at 10% compared to 10.8% in the prior year period. We ended the quarter with liquidity of approximately $288 million, which is inclusive of cash, cash equivalents, restricted cash, and short-term investments, which is down slightly from $303 million at the end of last year, mainly due to the repurchase of our stock.

第一季淨收入為 2,700 萬美元，較去年同期成長 10%，而去年同期則為 10.8%。本季末，我們的流動資金約為 2.88 億美元，其中包括現金、現金等價物、受限現金和短期投資，較去年年底的 3.03 億美元略有下降，主要原因是我們回購了股票。

Back in September 2024, our Board authorized a program of $46 million, which was subsequently increased to $62 million this past March. We've been active under this program. And to date, we have repurchased approximately 3.7 million shares for approximately $61.8 million. We plan on retiring all shares repurchased. Turning to our outlook for the second quarter. We expect total revenue to be between $275 million and $305 million.

早在 2024 年 9 月，我們的董事會就批准了一項 4,600 萬美元的計劃，今年 3 月增加到 6,200 萬美元。我們一直積極參與該計劃。到目前為止，我們已回購約 370 萬股，價值約 6,180 萬美元。我們計劃回購所有股票。談談我們對第二季的展望。我們預計總收入將在 2.75 億美元至 3.05 億美元之間。

Thank you again for your continued support and for joining us today. Operator, we're now ready to take questions from the line.

再次感謝您一直以來的支持以及今天的加入我們。接線員，我們現在可以回答線上提問了。

(Operator Instructions) Ryan Meyers, Lake Street.

（操作員指示）Ryan Meyers，Lake Street。

First one for me. I just kind of want to unpack the quarter results a little bit more. Results obviously came in a little bit ahead of what your expectations were back when you gave guidance on the fourth quarter call. So just wondering what you saw that ended up driving the results ahead of expectations?

對我來說是第一個。我只是想進一步解釋一下本季的業績。顯然，結果比您在第四季度電話會議上給出指導時的預期要高出一點。所以想知道您看到了什麼，最終導致結果超出預期？

Thanks, Ryan. I think it was a combination of things. Mostly, I think we saw very strong growth on the -- on our service side and also Europe. Those are kind of our two big kind of shining points for the first quarter.

謝謝，瑞安。我認為這是多種因素共同作用的結果。主要是，我認為我們在服務方面以及歐洲都看到了非常強勁的成長。這些是我們第一季的兩大亮點。

Okay, got it. And then, if we think about the sequential gross margin improvement that you saw from the fourth quarter into the first quarter, maybe how should we think about that here in the second quarter? What you guys are seeing already as you've rolled out some of those underprofitable SKUs? Could we expect to see a gross margin expansion, or will the biggest hit on that kind of SKU rationalization come here in the second quarter?

好的，明白了。然後，如果我們考慮到從第四季到第一季看到的連續毛利率改善，那麼我們應該如何看待第二季的毛利率改善？當你們推出一些利潤低的 SKU 時，你們已經看到了什麼？我們是否可以預期毛利率會擴大，或者這種 SKU 合理化帶來的最大衝擊會在第二季出現嗎？

Great question. Unfortunately, I don't think we're able to say for sure what will happen for Q2. As you know, the environment has been very interesting with all the changes, and this has kind of caused a wide range of different reactions from different players in the entire supply chain. So I don't think at this point we have enough clarity.

好問題。不幸的是，我認為我們無法確定第二季度會發生什麼。如您所知，環境發生了許多變化，非常有趣，這引起了整個供應鏈中不同參與者的各種不同反應。所以我認為目前我們還沒有足夠的清晰度。

And specifically, on the point you made regarding Noble House, so I do want to throw in a reminder here. Yes, we are seeing very good feedback during this initial rollout of the new SKUs. But usually, it takes us a bit of time for new SKUs to develop kind of a higher level or a healthier level of sales. The typical time requires three to six months. What I'm trying to say is, for us to see meaningful margin impact, that would typically be the amount of time needed.

具體來說，關於您提到的貴族之家，我確實想在這裡提醒一下。是的，我們在新 SKU 首次推出時看到了非常好的回饋。但通常情況下，我們需要一些時間來讓新的 SKU 達到更高水平或更健康的銷售水平。通常需要三到六個月的時間。我想說的是，為了讓我們看到有意義的利潤影響，這通常需要一定的時間。

Tom Forte, Maxim Group.

湯姆福特 (Tom Forte)，馬克西姆集團 (Maxim Group)。

So first off, Larry, Iman, Erica, congrats on the quarter. I have four. I'll go one at a time. You touched on this in your prepared remarks, but I was hoping you can give a little bit of a longer answer. How should we think about the ability of your marketplace to empower buyers and sellers to sell in markets outside the US such as Europe?

首先，拉里、伊曼、艾莉卡，恭喜本季取得佳績。我有四個。我會一個一個去。您在準備好的發言中提到了這一點，但我希望您能給出更長的答案。我們應該如何看待您的市場讓買家和賣家有能力在美國以外的市場（例如歐洲）進行銷售的能力？

Hey, Tom, thanks for the question. So I think the marketplace can be helpful in a few ways. First off, we offer flexibility and reach, right? So let's say, a seller who didn't traditionally operate in Europe is looking to -- to grow into that market, they would need a lot of support in terms of, for example, logistics. And those are obviously, if you were to do it on your own, quite a bit of a capital investment, right?

嘿，湯姆，謝謝你的提問。所以我認為市場可以在幾個方面提供幫助。首先，我們提供靈活性和影響力，對嗎？假設一個傳統上不在歐洲經營的賣家想要進入該市場，他們需要很多方面的支持，例如物流。顯然，如果您要自己做的話，這需要相當大的資本投資，對嗎？

The GigaCloud model offers reach and a lot of flexibility, meaning it's a pay-as-you-go, use-as-you-go kind of model. So this changes with -- or the seller could use this with a lot of flexibility based on how the market is responding to their products, how they're doing, et cetera.

GigaCloud 模式提供了廣泛的覆蓋範圍和很大的靈活性，這意味著它是一種按需付費、按需使用的模式。因此，這會發生變化——或者賣家可以根據市場對其產品的反應、他們的表現等靈活地使用它。

And then, Erica, my next question. Can you explain how tariffs may translate into higher prices? I think there's a common misconception that 100% tariff, for example, results in 100% price increase. And in fact, there's a lot of costs that are not impacted by tariffs?

然後，艾莉卡，我的下一個問題是。您能解釋一下關稅如何導致價格上漲嗎？我認為人們普遍存在一種誤解，認為 100% 的關稅會導致 100% 的價格上漲。事實上，有很多成本並不受關稅影響？

Correct. So I don't think 100% tariff would translate dollar for dollar or into a direct 100% increase for the end consumer, right? Because tariffs are only applied on the value of the goods, not the -- all of the cost of the seller, which includes a wide variety of things such as warehousing, ground shipping, picking, and packing. Does that answer your question?

正確的。所以我不認為 100% 的關稅會轉化為一美元對一美元的關稅，或是導致最終消費者的價格直接上漲 100%，對嗎？因為關稅只針對貨物的價值，而不是賣方的所有成本，其中包括倉儲、地面運輸、揀貨和包裝等各種各樣的費用。這回答了你的問題嗎？

And then for my next one -- yes. So can you talk about your interest in entering new categories? I think there was a point in time when you were considering expanding in auto parts as an example?

那麼我的下一個問題--是的。那麼，您能談談您對進入新類別的興趣嗎？我想您曾經考慮過擴大汽車零件業務，例如？

So we do already have auto parts on our marketplace. So our marketplace, I know most folks when they think of us, they think furniture, but really, the marketplace is designed for products that are big and bulky and non-standardized. Those are kind of the two keywords the entire system and SFR model is built around. So, as of today, furniture is definitely our biggest category, but we do have a lot of sellers that are working with a wide range of different products. So auto parts, like you said just now, is one of them.

因此我們的市場上已經有汽車零件了。所以我們的市場，我知道大多數人想到我們時，都會想到家具，但實際上，這個市場是為大而笨重且非標準化的產品而設計的。這兩個關鍵字是整個系統和 SFR 模型的核心。因此，截至今天，家具絕對是我們最大的類別，但我們確實有許多賣家正在經營各種不同的產品。正如您剛才所說，汽車零件就是其中之一。

There's also fitness equipment, larger toys, certain gardening tools, think your bigger ones like lawnmowers and such, and different pet supplies, cat trees, larger dog houses, et cetera, and various other materials such as bath tubs, there's a wide range of them.

還有健身器材、大型玩具、某些園藝工具（如割草機等大型工具），以及不同的寵物用品、貓樹、大型狗屋等等，以及各種其他材料（如浴缸），種類繁多。

And then my last question. Can you give your current thoughts on strategic M&A and the types of assets you're considering?

這是我的最後一個問題。您能否談談您目前對策略併購的看法以及您正在考慮的資產類型？

Yeah. So I think we've talked about this before, but this is definitely a category -- an area we're very interested in, and right now is a very interesting time that might prove to have some very attractive opportunities for us. And they mostly surround -- are around a few topics.

是的。所以我想我們之前已經討論過這個問題，但這絕對是一個我們非常感興趣的類別——一個領域，現在是一個非常有趣的時刻，可能會為我們帶來一些非常有吸引力的機會。它們主要圍繞著幾個主題。

So the first one is obviously Europe. We're growing very quickly here. And with everything that's been going on, we're getting even more interest from our customer base in -- expanding into Europe, if they're not already there. And we would like our infrastructure to be growing at a pace that's sufficient to support that effectively. So anything that fits that bill, we're interested.

因此第一個顯然是歐洲。我們在這裡發展非常快。隨著這一切的發生，我們的客戶群對擴展到歐洲的興趣越來越濃厚，如果他們還沒有進入歐洲的話。我們希望我們的基礎設施能夠以足夠的速度成長，以有效地支援這一點。因此，任何符合這項要求的東西，我們都感興趣。

The other one is kind of our long-term -- aligns with our long-term strategy in terms of better servicing the brick-and-mortar space that could come in a different way. For example, technology that helps us better understand and serve that customer base, Wondersign is a good example here, or other sort of channels or connections would also be appealing.

另一個是我們的長期目標——與我們的長期策略一致，即以不同的方式更好地服務實體店。例如，幫助我們更了解和服務客戶群的技術，Wondersign 就是一個很好的例子，或者其他類型的管道或聯繫也會很有吸引力。

(Operator Instructions) Matt Koranda, Roth.

（操作員指示）馬特·科蘭達，羅斯。

Just wanted to make sure I understood. Did you guys reclassify some product revenues from last year into service revenue? I just wanted to make sure I understand what's happening with the segment comparisons on a year-over-year basis that you gave?

只是想確保我理解了。你們是否將去年的一些產品收入重新歸類為服務收入？我只是想確保我理解您提供的同比細分比較情況是怎樣的？

Hey, Matt. Yeah, that's right. Yeah, we did. So if you go into our footnote, we have kind of a detailed discussion there, but we can go over that again as well.

嘿，馬特。是的，沒錯。是的，我們做到了。因此，如果你看一下我們的腳註，你會發現我們在那裡進行了詳細的討論，但我們也可以再討論一遍。

So we used to -- when we sell a product as part of our 1P operations, the customer has the option of selecting if they want to use their own delivery services, aka will call, or having GigaCloud deliver it to the designated location as required by customer. So historically, we have made the election to report the two parts as one under product revenue, under US GAAP.

因此，當我們作為 1P 營運的一部分銷售產品時，客戶可以選擇是否使用自己的送貨服務（即打電話），或讓 GigaCloud 根據客戶要求將其送到指定地點。因此，從歷史上看，我們選擇根據美國公認會計準則將這兩部分作為產品收入的一部分進行報告。

So as of late, or as of Q1 2025, we are now reporting the two separately. And we have accordingly retrospectively adjusted 2024 financials to make the comparables still relevant. So we think this is a better method because it provides more transparency and breaks down the different components with more detail.

因此，截至最近，或截至 2025 年第一季度，我們現在將分別報告這兩項數據。因此，我們對 2024 年的財務狀況進行了追溯調整，以確保可比較數據仍然具有相關性。因此我們認為這是一種更好的方法，因為它提供了更高的透明度，並更詳細地分解了不同的組件。

And also, this is related to a recent platform upgrade that gives the customer or the buyer a little more flexibility. They don't have to decide which type of -- whose delivery service to use on the spot. It's a decision they can make and change after the fact whenever they like.

此外，這與最近的平台升級有關，它為客戶或買家提供了更多的靈活性。他們不必當場決定使用哪種類型的送貨服務。他們可以隨時做出決定並進行更改。

Okay. Got it. All right, I'll take a look in more detail. And then, just want to make sure I understand sort of the trend that we're implying in the guidance. So the first quarter there was some growth on a year-over-year basis, but we're guiding at least at the midpoint for the second quarter to a sequential deceleration in revenue and it looks like maybe negative on a year-over-year basis, if I just use the midpoint of the range. What is the -- I guess, what's the missing piece here in terms of what causes that deceleration in year-over-year growth in the second quarter?

好的。知道了。好的，我會詳細看看。然後，只是想確保我理解我們在指導中暗示的趨勢。因此，第一季的營收與去年同期相比有所成長，但我們預計第二季的營收至少在中點會出現連續減速，如果我只使用範圍的中點，那麼與去年同期相比，營收可能會出現負成長。我想，就導致第二季年增率放緩的原因而言，這裡缺少什麼？

You mean -- so Q2 this year compared to Q2 last year, the main difference is going to be Noble House, right? So we had a really good quarter last year because summer has traditionally always been Noble House's strongest quarter. It has a kind of very strong edge in outdoors products.

你的意思是──那麼今年第二季與去年第二季相比，主要的差別在於 Noble House，對嗎？因此，去年我們的季度表現非常好，因為夏季傳統上一直是 Noble House 最強勁的季度。它在戶外產品方面具有非常強的優勢。

So this year, because we're in Phase 3 of the integration plan and we're switching out a lot of the old SKUs, even though the new SKUs are showing good results so far, we do need more time to ramp up volume. That's kind of the biggest delta we have there. There are also certain channels that we're seeing a little more softness in the US that are historically strong Noble House partners. So there's a bit of an impact from that as well.

因此，今年，由於我們正處於整合計劃的第三階段，我們正在更換許多舊的 SKU，儘管到目前為止新的 SKU 表現良好，但我們確實需要更多時間來提高銷售量。這是我們在那裡發現的最大的三角洲。我們也發現，美國某些通路的業務略顯疲軟，而這些通路一直以來都是 Noble House 的強大合作夥伴。所以這也會產生一些影響。

Okay, all right. Got it. Maybe just wanted to make sure I understand what is reflected in the second quarter guidance because it's just -- a lot of the sort of macro news is so fresh these days. But does the second-quarter outlook, I assume, takes into account the pause between the US and China in terms of reciprocal tariffs?

好的，好的。知道了。也許只是想確保我理解第二季指引中反映的內容，因為最近很多宏觀新聞都很新鮮。但我認為，第二季的前景是否考慮到了美國和中國在互惠關稅方面的暫停？

Great question. Thank you for asking that. So I do want to clarify. I think the impact from the pause is going to be limited in Q2 financials. So if you consider the amount of time it takes to ship something over and the natural kind of turn cycle or days in warehouse for the furniture inventory, we actually expect to see most of that impact in Q3, not Q2.

好問題。謝謝你問這個問題。所以我確實想澄清一下。我認為暫停對第二季財務的影響將是有限的。因此，如果考慮到運送貨物所需的時間以及家具庫存的自然週轉週期或倉庫存放天數，我們實際上預計大部分影響將出現在第三季度，而不是第二季度。

Thank you. That does conclude our question-and-answer session and our conference for today. We thank you for participating, and you may now disconnect.

謝謝。今天的問答環節和會議到此結束。感謝您的參與，您現在可以斷開連接了。