Investment Rating - The report maintains a "Buy" rating for Sea (SE.US) and raises the target price to $165 [4][6]. Core Insights - The company's revenue for Q4 2024 reached $4.95 billion, representing a year-on-year growth of 36.9%, exceeding market expectations by 6.1% [2]. - The adjusted EBITDA for Q4 2024 was $590 million, with an adjusted EBITDA margin of 11.9% [2]. - The adjusted net profit for Q4 2024 was $410 million, with an adjusted net profit margin of 8.3% [2]. - The e-commerce segment showed profitability improvement, with a projected GMV growth rate of 20% for 2025 [2][4]. - Digital financial services revenue grew by 55.2% year-on-year in Q4 2024, driven primarily by credit business [3]. - Digital entertainment revenue turned positive with a 1.2% year-on-year increase in Q4 2024, and the company expects double-digit growth in 2025 [3]. Financial Performance Summary - For FY23, the company reported total revenue of $13.064 billion, with projections of $16.820 billion for FY24 and $20.854 billion for FY25 [5]. - The adjusted EBITDA is expected to grow at a compound annual growth rate (CAGR) of 35% from FY24 to FY27E [4]. - The net profit is projected to increase from $151 million in FY23 to $1.450 billion in FY25 [12]. Market Position and Valuation - The current market price is $132.31, with a potential upside of 25% to the target price of $165 [7]. - The company has a total market capitalization of $75.726 billion [7]. - The report indicates that the company’s various business segments are maintaining strong growth trajectories, particularly in e-commerce and digital financial services [4].

Core Insights - Sea Limited reported a revenue of $4.95 billion and earnings per share (EPS) of $0.39, surpassing analysts' expectations of $4.65 billion and $0.30 respectively [1][3] - The company achieved a net income turnaround of $237.6 million in Q4 2024, compared to a loss of $111.6 million in the same quarter last year, marking a significant improvement [2][3] Financial Performance - Revenue increased by 37% year over year, driven by strong performances in e-commerce and digital financial services [6] - Shopee's gross merchandise value (GMV) rose to $28.6 billion, a 23.5% increase [6] - SeaMoney's loan book size reached $5 billion, reflecting a 63.9% surge from the previous year [6] - Adjusted EBITDA for the quarter was $590.9 million, a 366% increase from $126.7 million in Q4 2023 [3] Business Overview - Sea Limited operates in digital entertainment, e-commerce, and digital financial services through its brands Garena, Shopee, and SeaMoney [4] - The company focuses on integrating these services to enhance user experience and support growth across segments [4] Strategic Focus - The company aims to maintain market leadership in Southeast Asia and pursue smart geographic diversification and strategic alliances [5] - Investments in artificial intelligence (AI) and logistics are crucial for addressing competitive pressures and enhancing operational efficiencies [9] Future Outlook - Management projects a 20% GMV growth for Shopee in 2025, with continued expansion in key markets such as Asia and Brazil [10] - SeaMoney's loan book is expected to grow faster than Shopee's, indicating strong demand for financial services [10] - Garena is anticipated to sustain double-digit growth in users and bookings [10]

Exhibit 99.1 Sea Limited Reports Fourth Quarter and Full Year 2024 Results Singapore, March 4, 2025 – Sea Limited (NYSE: SE) ("Sea" or the "Company") today announced its financial results for the fourth quarter and full year ended December 31, 2024. "We delivered a great 2024 with all three businesses going back to strong, double-digit growth, exceeding our original guidance. It was also our second consecutive year of annual positive profit, with all three of our businesses recording positive adjusted EBITD ...

Group 1 - The stock market is currently receding from all-time highs, prompting a review of portfolio positions to ensure their value [1] - Momentum stocks that previously performed well are under scrutiny as investors reassess their worth [1] - Gary Alexander has extensive experience in technology companies and has been a contributor to Seeking Alpha since 2017, providing insights into industry trends [1] Group 2 - The article does not provide specific investment recommendations or advice regarding the suitability of investments for individual investors [2][3] - There is no indication of any stock or derivative positions held by the analyst, ensuring an unbiased perspective [2]

Financial Data and Key Metrics Changes - Total GAAP revenue increased by 37% year-on-year to $5 billion in Q4 2024 and by 29% year-on-year to $16.8 billion for the full year 2024, driven primarily by GMV growth in e-commerce and digital financial services [47] - Total adjusted EBITDA was $591 million in Q4 2024, compared to $127 million in Q4 2023, and $2 billion for the full year 2024, up from $1.2 billion in 2023 [48] - Net income was $238 million in Q4 2024, compared to a net loss of $112 million in Q4 2023, and net income for the full year was $448 million, up from $163 million in 2023 [53] Business Line Data and Key Metrics Changes E-commerce - Shopee's gross orders grew by 20% year-on-year to $3 billion in Q4 2024, with GMV increasing by 23% year-on-year to $28.6 billion [48] - E-commerce adjusted EBITDA was $152 million in Q4 2024, compared to an adjusted EBITDA loss of $225 million in Q4 2023, achieving positive adjusted EBITDA of $156 million for the full year 2024 [49] Digital Financial Services - Digital financial services GAAP revenue increased by 55% year-on-year to $733 million in Q4 2024 and by 35% year-on-year to $2.4 billion for the full year 2024 [50] - The loan book reached $5.1 billion, up 64% year-on-year, with a 90-day NPL ratio of 1.2% [50][28] Digital Entertainment - Digital entertainment bookings were $543 million in Q4 2024, up 19% year-on-year, and $2.1 billion for the full year 2024, also up 19% year-on-year [51] Market Data and Key Metrics Changes - In Southeast Asia, Shopee's live streaming now contributes around 15% of overall order volume for physical goods, with significant growth in unique streamers and viewers [18] - In Brazil, average monthly active buyers increased by over 40% year-on-year in Q4 2024, significantly outpacing the industry average [22] Company Strategy and Development Direction - The company aims to maintain profitability and self-sufficiency across all three business verticals, with a focus on enhancing price competitiveness, improving service quality, and strengthening the content ecosystem [7][12] - The strategy includes leveraging AI to improve service quality and operational efficiency, with a commitment to exploring AI-driven innovations [17][122] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth potential for Shopee, expecting full-year 2025 GMV growth of around 20% with improving profitability [25] - The digital financial services segment is expected to grow loan book size meaningfully faster than Shopee's GMV growth rate in 2025 [34][64] Other Important Information - The company reported a strong performance in Brazil, achieving positive adjusted EBITDA for the second consecutive quarter and seeing significant growth in both e-commerce and fintech [23][90] - The company is open to exploring various uses of cash reserves, including potential dividends and acquisitions, while maintaining a focus on organic growth [111][112] Q&A Session Summary Question: E-commerce GMV growth guidance for 2025 - Management expects 20% GMV growth, assuming stable foreign exchange rates, driven by user growth and purchase frequency [59][60] Question: Drivers behind fintech performance - Growth in loan outstanding is driven by markets like Indonesia and the Philippines, with expectations for newer markets to show faster growth [62][64] Question: Logistics and fulfillment strategy - The company is in early stages of fulfillment in Brazil, aiming to improve buyer experience and delivery times without significant impact on profitability [84][85] Question: Profitability in Brazil - Both Asia and Brazil recorded profitability in Q4, with expectations for continued growth and profitability in 2025 [89][90] Question: AI's impact on cost efficiency and monetization - AI is contributing to both cost savings and improved monetization through enhanced user experience and operational efficiencies [120][122]

Core Insights - Sea Limited reported a revenue of $4.97 billion for the quarter ended December 2024, marking a 39.7% increase year-over-year, with an EPS of $0.62 compared to -$0.01 in the same quarter last year [1] - The revenue exceeded the Zacks Consensus Estimate of $4.84 billion by 2.84%, while the EPS fell short of the consensus estimate of $0.76 by 18.42% [1] Financial Performance Metrics - Quarterly paying users remained stable at 50, matching the average estimate [4] - Quarterly active users reached 618, slightly above the average estimate of 608 [4] - Revenue from Digital Entertainment was $519.06 million, slightly above the average estimate of $513.88 million, reflecting a year-over-year increase of 1.6% [4] - E-Commerce revenue was reported at $3.66 billion, exceeding the average estimate of $3.59 billion, with a year-over-year growth of 41.4% [4] - Digital Financial Services revenue was $733.33 million, surpassing the estimated $640.43 million, representing a significant year-over-year increase of 55.2% [4] - Revenue from Other Services was $35.41 million, above the average estimate of $31.94 million, but showed a year-over-year decline of 16.1% [4] Adjusted EBITDA Analysis - Adjusted EBITDA for Digital Entertainment was $289.73 million, below the average estimate of $299.87 million [4] - E-commerce adjusted EBITDA was reported at $152.21 million, exceeding the average estimate of $110.53 million [4] - Unallocated expenses for adjusted EBITDA were -$56.88 million, significantly worse than the average estimate of -$0.85 million [4] - Other Services adjusted EBITDA was -$5.12 million, better than the average estimate of -$19.06 million [4] - Digital Financial Services adjusted EBITDA was $210.98 million, above the average estimate of $196.90 million [4] Stock Performance - Sea Limited's shares returned +1.3% over the past month, contrasting with the Zacks S&P 500 composite's -2.3% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

Core Viewpoint - Sea Limited is expected to report its fourth-quarter 2024 results on March 04, with earnings estimates showing a decline compared to the previous year, while revenue is projected to grow significantly year-over-year [1][2]. Financial Performance - The Zacks Consensus Estimate for fourth-quarter earnings is 76 cents per share, reflecting a 5% decrease over the past 30 days, compared to a loss of 1 cent in the same quarter last year [2]. - Revenue estimates stand at $4.84 billion, indicating a year-over-year growth of 35.79% [2]. - Sea Limited has missed earnings estimates in the last four quarters, with an average negative surprise of 55.54% [2]. Key Growth Drivers - Sea Limited is anticipated to benefit from strong e-commerce performance, maintaining mid-20% GMV growth guidance, bolstered by the holiday shopping season [4]. - Shopee achieved positive adjusted EBITDA in both Asia and Brazil during Q3 2024, indicating strong financial performance and sustainable growth [5]. - SeaMoney's loan book increased over 70% year-over-year in Q3 2024, driven by strong credit demand in underserved markets, which is expected to positively impact Q4 results [6]. - Garena's total bookings grew 24% year-over-year, supported by high engagement in its flagship game, Free Fire, which has over 100 million daily active users [7]. Competitive Landscape - The e-commerce sector is facing intensifying competition from regional and global players, which is likely to have impacted Sea Limited's performance in the fourth quarter [8]. Earnings Expectations - According to the Zacks model, Sea Limited has an Earnings ESP of -18.78% and a Zacks Rank of 3, indicating lower odds of an earnings beat [9].

Core Viewpoint - Sea Limited is expected to report significant growth in earnings and revenues for the upcoming quarter, with analysts projecting earnings of $0.76 per share and revenues of $4.84 billion, reflecting a year-over-year increase of 7700% and 35.8% respectively [1] Earnings Estimates - The consensus EPS estimate for Sea Limited has remained unchanged over the past 30 days, indicating analysts' reassessment of their projections [1][2] - Changes in earnings estimates are crucial for predicting investor reactions and have a strong correlation with short-term stock performance [2] Revenue Projections - Analysts estimate 'Revenue- Digital Entertainment' to be $513.88 million, a slight increase of 0.6% from the previous year [4] - 'Revenue- E-Commerce' is projected to reach $3.59 billion, representing a significant year-over-year increase of 38.4% [4] - 'Revenue- Digital Financial Services' is expected to be $640.43 million, reflecting a 35.6% increase from the prior year [5] - 'Revenue- Other Services' is forecasted to decline to $31.94 million, indicating a year-over-year decrease of 24.3% [5] User Metrics - Analysts predict 'Quarterly paying users' to increase to 50, up from 40 in the same quarter last year [5] - 'Quarterly active users' are expected to reach 608, compared to 529 in the same quarter last year [6] Adjusted EBITDA - The estimated 'Adjusted EBITDA- Digital Entertainment' is projected at $299.87 million, an increase from $217.41 million reported in the same quarter last year [6] - 'Adjusted EBITDA- Digital Financial Services' is expected to be $196.90 million, up from $148.48 million in the previous year [7] Stock Performance - Sea Limited's shares have returned +5.2% over the past month, contrasting with the Zacks S&P 500 composite's -2.2% change [7]

Core Viewpoint - Sea Limited has undergone a significant transformation, positioning itself for sustainable growth after experiencing a dramatic decline in stock price, with a recent recovery reflected in a 200% rise over the past year [2][10]. Business Model and Operations - Sea Limited operates a diversified three-pronged business model encompassing e-commerce (Shopee), gaming (Garena), and fintech (Sea Money), similar to major Chinese tech firms like Alibaba and Tencent [3][5]. - Shopee is a leading e-commerce platform in Southeast Asia, Taiwan, and Brazil, generating revenue through marketplace commissions, advertising, and transaction fees [4]. - Garena focuses on mobile game development and publishing, notably Free Fire, and collaborates with companies like Tencent for game distribution [5]. - Sea Money provides digital financial services, including mobile wallets and digital banking, leveraging Shopee's user base for growth [13]. Financial Performance and Strategy - Sea Limited's aggressive growth strategy led to significant revenue increases, with Shopee's revenue surging by 160% in 2020 and 136% in 2021 [7]. - The company faced challenges in 2022, necessitating cost rationalization and market exits, which ultimately resulted in a positive adjusted EBITDA of $196 million in Q4 2022 [9]. - As of Q3 2024, Sea reported a revenue growth of 31% to $4.3 billion and a net profit of $153 million, with $9.9 billion in cash and investments [10]. Future Growth Opportunities - Sea is well-positioned for continued growth, particularly in e-commerce, as online penetration increases in Southeast Asia and Brazil, with opportunities to enhance revenue through fees and advertising [12]. - Sea Money is expanding its financial services, having secured banking licenses in countries like Singapore and Indonesia to offer digital banking [13]. - Garena has shown signs of recovery, with bookings growing 24% in Q3 2024, indicating potential for future growth [14].

Group 1 - The analysis focuses on high-quality companies that can outperform the market over the long run due to competitive advantages and high levels of defensibility [1] - The geographical focus is on European and North American companies, without constraints regarding market capitalization, ranging from large cap to small cap [1] - The analyst has an academic background in sociology, holding a Master's Degree in Sociology with an emphasis on organizational and economic sociology [1]