Key Takeaways A 40% jump in sales for Singapore's Shopee helped its parent Sea Limited post strong earnings. CEO Forrest Li said Shopee will become adjusted EBITDA-positive starting in the third quarter. Sea's gaming and financial services businesses also saw double-digit growth. The company's U.S.-traded shares jumped 12% on Tuesday, boosting its year-to-date gain to 85%. Shares of Sea Limited (SE), the Singapore tech conglomerate that runs online shopping website Shopee, soared Tuesday after the company r ...

Exhibit 99.1 1 ○ Total GAAP revenue was US$3.7 billion, up 22.8% year-on-year. ○ Total gross profit was US$1.6 billion, up 9.7% year-on-year. ○ Total net loss was US$23.0 million, as compared to total net income of US$87.3 million for the first quarter of 2023. ○ Total adjusted EBITDA1 was US$401.1 million, as compared to US$507.2 million for the first quarter of 2023. ○ As of March 31, 2024, cash, cash equivalents, short-term investments, and other treasury investments 2 were US$8.6 billion, representing a ...

Earnings showed growth and increasing profitability across all three of the company's segments. Shares of Sea Limited (SE 11.66%) were rallying on Tuesday, up 11.5% as of 2:35 p.m. ET. The Southeast Asian e-commerce, fintech, and gaming company reported earnings today that were somewhat mixed relative to analyst estimates, but it showed continued improvement across all three of its segments. Sea's comeback is underway Sea Limited was one of the darlings of the pandemic era, reaching a high of $372 per share ...

Financial Data and Key Metrics - Total GAAP revenue increased 23% YoY to $3.8 billion in Q2 2024, driven by e-commerce GMV growth and Digital Financial Services (DFS) business growth [15] - Adjusted EBITDA was $448 million in Q2 2024, compared to $510 million in Q2 2023 [15] - E-commerce adjusted EBITDA improved QoQ, with losses narrowing to $9 million in Q2 2024 from $22 million in Q1 2024 [15] - DFS GAAP revenue grew 21% YoY to $519 million, with adjusted EBITDA up 20% YoY to $165 million [17] - Digital Entertainment bookings grew 21% YoY to $537 million, with adjusted EBITDA of $303 million [17] Business Line Performance E-commerce (Shopee) - Shopee's gross orders grew 40% YoY, and GMV increased 29% YoY [15] - Core marketplace revenue (transaction-based fees and advertising) grew 41% YoY to $1.8 billion [15] - Value-added services revenue (logistics) grew 16% YoY to $0.7 billion [16] - Shopee's ad take rate is lower than the industry average, but the number of sellers paying for ads increased by over 20% YoY [6] - Live Ads launched in Asian markets, with 25% of active streamers in Indonesia paying for Live Ads in June [7] - SPX Express improved delivery speed, with over 70% of orders delivered within three days, and cost per order declined 8% YoY [8] Digital Financial Services (SeaMoney) - Consumer and SME credit business remains the primary driver of SeaMoney's revenue and profit growth [9] - Loan book size reached $3.5 billion at the end of June, up almost 40% YoY [11] - Non-performing loans (NPL) metric improved slightly to 1.3% at the end of Q2 [17] - Over 4 million first-time borrowers registered in Q2, more than double compared to a year ago [10] Digital Entertainment (Garena) - Free Fire contributed to over 20% YoY growth in bookings, with more than 100 million daily active players in Q2 [12] - Free Fire was the most downloaded mobile game globally in Q2, according to Sensor Tower [12] - Need for Speed: Mobile to be launched in Taiwan, Hong Kong, and Macau later in 2024 [13] Market Performance - In Asia, e-commerce adjusted EBITDA was $4 million in Q2 2024, compared to $204 million in Q2 2023 [16] - In Brazil, unit economics improved, with a positive contribution margin per order of $0.09 in Q2 2024, compared to a loss of $0.24 in Q2 2023 [16] Strategic Direction and Industry Competition - Shopee's operational priorities include enhancing price competitiveness, improving service quality, and strengthening the content ecosystem [5] - The company expects Shopee to become adjusted EBITDA positive from Q3 2024 and revised full-year GMV growth guidance to mid-20s [5] - The company sees a more stable competitive environment in Southeast Asia, with industry-wide take rate increases [19] - The company is focused on deepening credit product penetration both on and off Shopee, with new use cases like SPayLater loans for mobile phone sales in Indonesia [10] Management Commentary on Operating Environment and Future Outlook - Retail and consumer spending trends in Southeast Asia remain healthy, supporting e-commerce growth [4] - The company is optimistic about the potential for further ad take rate improvements and expects to see benefits in the coming quarters [22] - Free Fire is seen as an evergreen franchise, with strong momentum expected to continue in H2 2024 [34] - The company is cautious about competition from cross-border e-commerce players like Temu but believes its pricing advantage and domestic seller base provide a strong competitive edge [37] Other Important Information - Two new Independent Directors joined the Board: Dr. Silvio Savarese (AI expert) and Ms. Jessica Tan (financial services leader) [14] - Tony Hou will step down from the Board but continue as CFO [14] Q&A Session Summary Question 1: Competitive Landscape and Margin Expectations for Shopee [19] - The company sees a more stable competitive environment and expects Shopee to achieve 2-3% EBITDA margin in the long term [19] - Near-term focus is on profitability and market growth, with medium-term expectations for further industry rationalization [19] Question 2: Ad Take Rate and Live Streaming Unit Economics [21] - Opportunities exist to further increase ad take rates, particularly through improved ad products and algorithms [22] - Live streaming unit economics are improving, with some markets already profitable [22] Question 3: Brazil Market and EBITDA Guidance [24] - Brazil's contribution margin turned positive, driven by reduced shipping costs and improved user experience [25] - Adjusted EBITDA positive guidance refers to Q3 standalone EBITDA [25] Question 4: DFS Growth and Logistics Optimization [27] - DFS is expanding both online and offline credit use cases, with partnerships in Indonesia for SPayLater loans [28] - SPX Express is optimizing operations through scale, automation, and technology improvements [28] Question 5: Ad Take Rate Timeline and Gaming Momentum [31] - Ad take rate improvements are expected in the coming quarters, not years [32] - Free Fire's momentum is strong, with double-digit growth expected for 2024 [34] Question 6: Competition in Taiwan and Indonesia [40] - In Taiwan, the company is focusing on delivery speed and seller efficiency to maintain competitiveness [42] - In Indonesia, the company is less concerned about short-term subsidy fluctuations and focuses on medium-term trends [42] Question 7: DFS Margin Trends and Revenue Mix [43] - DFS margins are stable, with newer markets showing faster growth [44] - Long-term revenue mix may see a higher contribution from DFS due to GAAP revenue treatment for gaming [45] Question 8: Commission Take Rate and Free Fire Booking Growth [46] - Commission take rates are expected to remain below global peers, but ad take rates will drive overall improvements [47] - Free Fire booking growth remains strong, but the company is cautious about updating guidance [48]

Sea Limited (NYSE:SE), a Singapore-based company that owns the Shopee e-commerce site, is seeing its stock surge over 10% this morning after reporting earnings. Sea reported net income of $331 million, 54 cents per share fully diluted, on revenue of $3.1 billion for the three months ending in June. Shares were trading this morning at about $74, with a market capitalization of over $42.6 billion. So far in 2024, SE stock is up 92%. Shopee Wee! Analysts disagreed on the meaning of the numbers, but traders bid ...

Sea Limited's (SE) shares have surged 65.3% compared with the Zacks Internet - Software industry's growth of 9.7%. The rise in stock price reflects investors' confidence in SE's portfolio strength and cost management initiatives. Sea Limited is also focusing on enhancing its profits by raising commissions on merchants. According to a report by Bloomberg, it has increased approximately one-third in the commissions it charges merchants in several key markets since the beginning of the year. This will allow Se ...

Sea Limited Sponsored ADR (SE) reported $3.91 billion in revenue for the quarter ended June 2024, representing a year-over-year increase of 29.9%. EPS of $0.46 for the same period compares to $0.83 a year ago. The reported revenue compares to the Zacks Consensus Estimate of $3.73 billion, representing a surprise of +4.73%. The company delivered an EPS surprise of -22.03%, with the consensus EPS estimate being $0.59. While investors closely watch year-over-year changes in headline numbers -- revenue and earn ...

Revenue Growth - Total GAAP revenue increased by 23.0% year-on-year to $3.8 billion in Q2 2024[2] - E-commerce GMV grew by 29.1% year-on-year to $23.3 billion in Q2 2024[3] - Digital Entertainment bookings increased by 21.1% year-on-year to $536.8 million in Q2 2024[5] - Digital Financial Services revenue rose by 21.4% year-on-year to $519.3 million in Q2 2024[4] - E-commerce gross orders increased by 40.3% year-on-year to 2.5 billion in Q2 2024[3] - Total revenue for the six months ended June 30, 2024, was $7.54 billion, up from $6.14 billion in the same period of 2023[36] - E-commerce revenue grew from $2,110,551 thousand in Q2 2023 to $2,821,269 thousand in Q2 2024, while digital financial services revenue increased from $427,940 thousand to $519,338 thousand[45][46] Profitability and Margins - Digital Entertainment adjusted EBITDA margin improved to 56.4% in Q2 2024 from 54.0% in Q2 2023[5] - E-commerce adjusted EBITDA turned negative at $(9.2) million in Q2 2024 compared to $150.3 million in Q2 2023[3] - Net income for Q2 2024 was $79.9 million, a significant decrease from $331.0 million in Q2 2023[22] - Basic earnings per share for Q2 2024 was $0.14, down from $0.57 in Q2 2023[24] - Diluted earnings per share for Q2 2024 was $0.14, compared to $0.54 in Q2 2023[24] - Gross profit for the six months ended June 30, 2024, was $3.14 billion, compared to $2.87 billion in 2023[36] - Operating income for the six months ended June 30, 2024, was $153.99 million, down from $409.04 million in 2023[36] - Net income attributable to Sea Limited's ordinary shareholders for the six months ended June 30, 2024, was $58.20 million, compared to $409.68 million in 2023[36] - Adjusted EBITDA for the e-commerce segment in Q2 2024 was $150.34 million, up from $(9.18) million in Q2 2023[33][34] - Adjusted EBITDA for the digital financial services segment in Q2 2024 was $136.96 million, down from $164.68 million in Q2 2023[33][34] - Adjusted EBITDA for the digital entertainment segment in Q2 2024 was $239.46 million, down from $302.80 million in Q2 2023[33][34] - Operating income for digital financial services improved from $120,966 thousand in Q2 2023 to $151,261 thousand in Q2 2024[45][46] User Engagement and Growth - Free Fire achieved over 100 million daily active players every day in Q2 2024[1] - Consumer and SME loans principal outstanding grew by 39.5% year-on-year to $3.5 billion as of June 30, 2024[4] Financial Position and Cash Flow - Total cash and investments increased by $364.7 million to $9.0 billion as of June 30, 2024[2] - Total assets increased from $18,883,232 thousand as of December 31, 2023, to $19,570,020 thousand as of June 30, 2024, reflecting growth in current and non-current assets[38] - Cash and cash equivalents decreased from $2,811,056 thousand to $2,646,488 thousand, while short-term investments increased from $2,547,644 thousand to $3,387,461 thousand[38] - Loans receivable (net) increased from $2,464,662 thousand to $2,809,987 thousand, indicating growth in the credit business[38] - Net cash used in investing activities amounted to $1,563,708 thousand, primarily due to an increase in loans receivable of $873,000 thousand and net placement of $575,000 thousand in securities[43] - Net cash generated from financing activities was $426,438 thousand, driven by an increase in bank deposits of $674,000 thousand, offset by repurchase of convertible notes of $176,000 thousand[43] - Total liabilities increased from $12,185,647 thousand to $12,603,743 thousand, with current liabilities rising from $8,168,941 thousand to $8,617,171 thousand[39] - Shareholders' equity increased from $6,697,585 thousand to $6,966,277 thousand, driven by growth in additional paid-in capital from $15,283,870 thousand to $15,640,134 thousand[41] Segment Performance - Digital entertainment revenue decreased from $529,397 thousand in Q2 2023 to $435,559 thousand in Q2 2024[45][46]

In its upcoming report, Sea Limited Sponsored ADR (SE) is predicted by Wall Street analysts to post quarterly earnings of $0.59 per share, reflecting a decline of 28.9% compared to the same period last year. Revenues are forecasted to be $3.73 billion, representing a year-over-year increase of 24%. The current level reflects a downward revision of 2.6% in the consensus EPS estimate for the quarter over the past 30 days. This demonstrates how the analysts covering the stock have collectively reappraised thei ...

Edwin Tan/E+ via Getty Images Investment Thesis Sea Limited (NYSE:SE) is trading 80% higher year to date, deteriorating its risk-reward ratio of last year's business inflexion and limiting its upside for the rest of the year. The blockbuster first quarter fully justified the stock price rally, after having been beaten down in 2022 in the post-covid correction. The stock will likely benefit for the rest of the year from the base effect of last year, when revenue grew only 4.9%, making it likely for the stock ...