Fool.com contributor Parkev Tatevosian presents one of his favorite growth stocks for long-term investors to buy in 2024. *Stock prices used were the afternoon prices of Dec. 25, 2023. The video was published on Dec. 27, 2023. ...

Financial Data and Key Metrics Changes - Total GAAP revenue increased by 5% year-on-year to $3.3 billion, driven by improved monetization in e-commerce and digital financial services [24][52] - Adjusted EBITDA was $35 million, compared to an adjusted EBITDA loss of $358 million in Q3 2022 [49] - Net loss was $144 million in Q3 2023, significantly improved from a net loss of $569 million in Q3 2022 [27] Business Line Data and Key Metrics Changes - E-commerce GAAP revenue was $2.2 billion, with marketplace revenue of $1.9 billion, up 18% year-on-year [49] - Digital entertainment bookings grew to $448 million, with GAAP revenue at $592 million [52] - Digital financial services GAAP revenue increased by 37% year-on-year to $446 million, with adjusted EBITDA at $166 million, compared to an adjusted EBITDA loss of $68 million in Q3 2022 [52] Market Data and Key Metrics Changes - Average monthly active buyers in Shopee grew by 11% quarter-on-quarter, with increased order frequency and improved buyer retention [15] - In Southeast Asia, average daily orders on live streaming reached over 10% of total order volume for October [17] - Contribution margin loss per order in Brazil improved by 91% year-on-year to $0.10, reflecting better monetization and higher efficiency [26] Company Strategy and Development Direction - The company aims to prioritize investing in market share gain and strengthening market leadership, especially in light of increased competition and the rise of live streaming e-commerce [10][11] - The strategy focuses on maximizing long-term profitability through scale and strong market leadership, while being flexible to adapt to changing market conditions [33][35] - The company is committed to maintaining a strong cash position and investing within its means, avoiding reliance on external funding [37][61] Management's Comments on Operating Environment and Future Outlook - Management noted that competition has intensified, but the company has successfully gained market share through investment efficiencies [61][62] - The company sees significant growth potential in e-commerce, particularly in underpenetrated markets like Brazil and Southeast Asia [125] - Management expressed confidence in the sustainability of credit quality and the growth of the credit portfolio, while remaining vigilant about market conditions [95][114] Other Important Information - The company has seen strong user adoption of direct debit services in its banking operations, enhancing the transactional experience on Shopee [23] - The logistics model focuses on building a network of small sorting centers rather than large warehouses, allowing for more efficient capital expenditure [68][70] Q&A Session All Questions and Answers Question: Can you discuss the linearity of GMV growth through the quarter and the impact of FX? - Management indicated that GMV growth momentum has continued into Q4, with better growth observed in constant currency terms despite some depreciation against the U.S. dollar [73][54] Question: What is the long-term expectation for live streaming's contribution to GMV? - Management believes that live streaming could reach 20-25% of total GMV in the future, similar to trends seen in China, with current contributions around 10% in Indonesia [74][11] Question: How does the company view its competitive advantage against new entrants? - Management highlighted scale, localized operations, and a well-developed logistics infrastructure as key competitive advantages that are sustainable in the long term [79][62] Question: What are the investment plans for logistics and their impact on CapEx? - Management clarified that logistics investments are ongoing but not as capital-intensive as perceived, focusing on network improvements and operational efficiencies [80][82] Question: Can you discuss the credit quality of the loan book and its long-term outlook? - Management reported an improving credit quality with a focus on maintaining healthy profit levels while expanding the credit portfolio [95][114]

November 2023 Disclaimer This presentation contains certain financial measures that are not recognized under generally accepted accounting principles in the U.S. ("GAAP"), including "adjusted EBITDA," and "total adjusted EBITDA." The reconciliation of those measures to the most comparable GAAP measures is contained within this presentation. The non-GAAP measures have limitations as an analytical tool and you should not consider them in isolation or as a substitute for an analysis of the Company's results un ...

Financial Data and Key Metrics Changes - Total GAAP revenue increased by 5% year-on-year to $3.1 billion, driven by improved monetization in e-commerce and digital financial services [6][54] - Group total adjusted EBITDA was $510 million, compared to an adjusted EBITDA loss of $506 million in the second quarter of 2022 [6] - Net income was $331 million in the second quarter of 2023, compared to a net loss of $931 million in the second quarter of 2022 [78] Business Line Data and Key Metrics Changes - E-commerce GAAP revenue was $2.1 billion, including GAAP marketplace revenue of $1.9 billion, up 28% year-on-year [77] - Core marketplace revenue was $1.2 billion, up 38% year-on-year and 7% quarter-on-quarter [77] - Digital financial services GAAP revenue increased by 53% year-on-year to $428 million, with adjusted EBITDA of $137 million [7][75] Market Data and Key Metrics Changes - Gross orders in the second quarter grew by more than 10% quarter-on-quarter, driven by growth in active buyers and purchase frequency [3] - Contribution margin loss per order in Brazil improved by 83% year-on-year to reach $0.24 [7] - Non-performing loans past due by more than 90 days remained stable at around 2% of total gross loans receivable [75] Company Strategy and Development Direction - The company plans to reaccelerate investments in growth while maintaining cost leadership and improving user experience [3][56] - Focus on enhancing logistics operations and expanding delivery options to improve user experience and reduce costs [17][19] - Emphasis on leveraging synergies between Shopee and SeaMoney ecosystems to provide better access to financial services [4][5] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of local economies and consumption, indicating new growth opportunities in live streaming and video content [10][48] - The company aims to remain self-sufficient while investing in growth, closely monitoring market conditions [15][42] - Management highlighted the importance of maintaining a competitive moat through cost efficiency and user engagement [15][46] Other Important Information - The Shopee Affiliate Program saw over one million influencers registered, contributing to increased GMV and revenue [1][2] - The company has made significant progress in improving user engagement metrics, particularly through live streaming initiatives [18][19] - The bank app received high ratings, reflecting user satisfaction with the digital financial services offered [5] Q&A Session Summary Question: Comments on GMV take rate and e-commerce strategy - Management noted sequential growth in GMV and an uptick in advertisement spending, impacting core marketplace revenue positively [9] - The impact of shipping subsidies on VAS revenue was acknowledged, affecting overall take rates [9][58] Question: Outlook for e-commerce investments and potential cash burn - Management confirmed a focus on self-sufficiency while ramping up investments, with expectations of growth from these investments [15][42] Question: Insights on e-commerce growth opportunities in Asia and Brazil - Brazil remains a key growth market, with improvements in EBITDA loss per order noted [34] Question: Performance of Undawn and Free Fire - Management indicated positive trends in user engagement for Free Fire, with ongoing monitoring for long-term stabilization [83][85] Question: Strategies for fintech and digital bank initiatives - The fintech business is producing strong cash flow, with a focus on maximizing synergies between Shopee and SeaMoney [63]

And in particular for Free Fire, our largest game and that increase was also broadly across different markets and not specific to any particular single market. This is as we share on the call, quite in line with our efforts and direction of our focus recently to continue to improve and enhance our user experience to retain and re-attract our users to our game. And this has been our focus and priority in the past periods, and we are pleased to see some initial results. I will continue to observe the trends g ...

US$ Billions Note: Financial figures are unaudited. 1. Short-term investments ("STI"). 2. Other treasury investments currently consist of available-for-sale sovereign and corporate bonds excluding those at our banking entities, with maturities over one year, classified as part of long-term investments. E-commerce US$ Billions 1Q 2022 1Q 2023 +46% YoY Core Marketplace Revenue Value-added Services Revenue 1.8 0.7 1.2 +33% YoY +54% YoY 1.3 Sea 1Q 2023 Results | Sea 1Q 2023 Results | 7 Gross Profit 1.4 Note: Fi ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 20-F | (Mark One) | | | --- | --- | | ☐ | REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR 12(g) OF THE SECURITIES EXCHANGE ACT OF 1934 | | OR | | | ☒ | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | | | For the fiscal year ended December 31, 2022. | | OR | | | ☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | | | For the transition period from ...

Sea Limited (NYSE:SE) Q4 2022 Earnings Call Transcript March 7, 2023 7:30 AM ET Company Participants Min Ju Song - Senior Manager, Group Chief Corporate Officer’s Office Forrest Li - Chairman & Group Chief Executive Officer Tony Hou - Group Chief Financial Officer Conference Call Participants Pang Vitt - Goldman Sachs Alicia Yap - Citigroup Piyush Choudhary - HSBC Thomas Chong - Jefferies Jiong Shao - Barclays Varun Ahuja - Credit Suisse Ranjan Sharma - JPMorgan Operator Good morning and good evening. Welco ...

Sea Limited (NYSE:SE) Q3 2022 Earnings Conference Call November 15, 2022 7:00 AM ET Company Participants Min Ju Song - Senior Manager, Group Chief Corporate Officerâs Office Forrest Li - Chairman & Group Chief Executive Officer Tony Hou - Group Chief Financial Officer Yanjun Wang - Group Chief Corporate Officer, Group General Counsel & Company Secretary Conference Call Participants Pang Vitt - Goldman Sachs Alicia Yap - Citigroup Thomas Chong - Jefferies Piyush Choudhary - HSBC Jiong Shao - Barclays Venugop ...

Third Quarter 2022 Results November 2022 connecting the dots Disclaimer This presentation by Sea Limited ("Sea") contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "may," "could," "will," "expect," "anticipate," "aim," "future," "intend," "plan," "believe," "estimate," "likely to," "potential," "confident," "guidance," and simi ...