Core Insights - Sea's FY25Q2 earnings call highlighted a 25% year-over-year growth in GMV for the first half of 2025, with Q2 showing record highs in total order volume, GMV, and revenue [1] - The company anticipates that the growth momentum will continue into Q3, maintaining similar growth rates as the first half of the year [2] Group 1: Financial Performance - The primary driver of revenue growth this quarter was advertising, with the number of sellers using ads increasing by 20% and average ad spending per paid seller rising over 40% [1] - Active buyer numbers and purchase frequency are on the rise, with the Brazilian market showing exceptional performance, achieving over 30% year-over-year growth in monthly active buyers and becoming a market leader in order volume [1] Group 2: Market Strategy - The company adjusted seller commissions without significant seller loss, indicating a stable response from the ecosystem [1][10] - In Brazil, high-ticket items contribute approximately 10% of revenue in the Mall business, suggesting substantial growth potential compared to Asia [1][9] Group 3: Competitive Landscape - Despite competitors lowering shipping thresholds, Sea's growth remains unaffected due to superior logistics cost structure and competitive pricing [3] - New entrants like Temu and TikTok have not significantly altered the competitive landscape in Brazil, as their market presence is still limited [8] Group 4: Future Outlook - The company is optimistic about the long-term improvement of EBITDA margins, despite potential short-term fluctuations due to seasonal factors [6] - The advertising monetization rate is currently around 2%, with significant room for growth compared to regional peers [15] Group 5: Technological Integration - AI is being utilized to enhance existing business operations, improve advertising efficiency, and optimize internal processes [16] - The company is exploring AI applications in gaming to enhance player engagement and retention, indicating a forward-looking approach to technology integration [18]

财报显示，截至6月的三个月内，Sea营收同比增长38%至创纪录的52.6亿美元，远超分析师平均预估的 50亿美元。净利润从上年同期的7990万美元跃升至4.142亿美元，不过略低于分析师预测的4.44亿美元。 智通财经APP获悉，在公布了超预期的业绩后，高盛给予Sea(SE.US)"买入"评级，目标价193美元。 虽然高盛承认由于电商竞争格局的有限可见性，短期内波动性增加的风险，但给予"买入"评级。 高盛认为，Sea是亚洲不断增长的游戏、电商和数字金融市场的领导者，鉴于其早期的先发优势、坚实 的业绩记录和品牌认知度，以及其在电商领域的日益增加的货币化和盈利能力。该行还看到其成功进入 拉美市场带来的进一步上升潜力。 ...

Group 1 - Sea's soaring sales are positioning it to reclaim the title of Southeast Asia's most valuable company, with a market valuation nearing $103 billion, just behind DBS Group's $113 billion [1] - The company's recent performance alleviated market concerns regarding its core e-commerce business, Shopee, as Southeast Asian consumers increasingly shift to online shopping [1][2] - Sea's revenue for the quarter ending June grew by 38% to a record $5.26 billion, surpassing analyst expectations of $5 billion, marking the largest stock price increase in over two years [2] Group 2 - Sea's logistics network, SPX Express, has significantly improved customer experience, contributing to nearly 30% growth in total e-commerce orders and gross merchandise value [2] - The company has raised merchant commission rates by approximately one-third in core markets since early last year, indicating confidence in attracting and retaining merchants due to its large user base and mature logistics services [2][3] - Sea's financial services segment, Monee, saw a 70% increase in sales to $882.8 million, while its gaming division, Garena, experienced a 23% revenue growth [3] Group 3 - Analysts expect that the growth across Sea's three main business segments will lead to a quadrupling of net profit by 2025, driven by strong momentum in the first half of the year and continued growth in the third quarter [3] - Improvements in advertising technology are anticipated to increase merchant spending and the number of advertisements, further enhancing monetization rates [3] - The scale effects, particularly in Brazil, are expected to lower average costs and enhance overall e-commerce profitability, with self-operated logistics remaining a key competitive advantage [3]

Summary of Sea Ltd. (SE) Earnings Call Company Overview - **Company**: Sea Ltd. (SE) - **Market Cap**: $92.8 billion - **Enterprise Value**: $87.9 billion - **Industry**: E-commerce, Gaming, Fintech Key Highlights E-commerce (Shopee) - **Strong Performance**: Shopee's growth in 2Q25 exceeded expectations, with a 25% year-over-year GMV growth in 1H25 expected to continue into 3Q25, suggesting potential upside to the existing 20% guidance for FY25 [1][16] - **Service Quality Initiatives**: Management emphasized a focus on service quality, including VIP subscriptions and faster deliveries, which are expected to enhance customer loyalty and market leadership [1][17] - **Logistics Improvement**: Logistics costs in Brazil decreased by 16% year-over-year, with average delivery times reduced by over 2 days [16] - **Competitive Positioning**: Despite increased competition, Shopee's growth in Brazil remains robust, with management confident in maintaining market share [16][18] Gaming - **Revenue Growth**: Management raised FY guidance for gaming bookings to grow over 30% year-over-year in 2025, driven by successful IP collaborations [2][22] - **Strong User Engagement**: Positive reception of collaborations, such as with Netflix's Squid Game and Naruto, indicates strong user engagement and potential for further growth [22] Fintech - **Loanbook Expansion**: The fintech segment's loanbook grew from $5.8 billion in 1Q25 to $6.9 billion, with significant growth in consumer and SME loans [2][27] - **Market Penetration**: On-Shopee BNPL penetration is in the mid-teens, with Malaysia surpassing $1 billion in loans, indicating strong market presence [27] Financial Performance - **Revenue Estimates**: Revenue projections for 2025 increased from $21.1 billion to $22.0 billion, reflecting a 4% increase [28] - **EBITDA Growth**: Adjusted EBITDA for 2025 is projected at $3.8 billion, up from previous estimates, indicating improved profitability across segments [28] - **Earnings Per Share (EPS)**: EPS estimates for 2025 increased to $2.70, reflecting strong earnings growth [28] Valuation and Price Target - **Target Price**: The 12-month target price is raised from $193 to $206, reflecting a positive outlook based on strong performance and growth potential [3][26] - **Valuation Methodology**: The target price is based on a sum-of-the-parts (SOTP) analysis, incorporating DCF and EV/Sales metrics [32] Risks and Considerations - **Competitive Landscape**: Risks include heightened competition, macroeconomic factors, and execution challenges in new markets like Brazil [33] - **Market Dynamics**: The company acknowledges potential volatility due to the evolving e-commerce competitive landscape [31] Conclusion - **Investment Thesis**: Sea Ltd. is positioned as a market leader in gaming, e-commerce, and fintech in Southeast Asia and Brazil, with strong growth prospects and a focus on service quality and customer loyalty [30]

Core Insights - Southeast Asian internet giant Sea reported strong performance in its Q2 financial results, with overall revenue increasing by 38% year-on-year, surpassing market expectations, primarily driven by robust e-commerce and financial services [1] E-commerce Performance - The core e-commerce segment, Shopee, saw its GMV (Gross Merchandise Volume) grow by 28% year-on-year, with a noticeable acceleration compared to the previous quarter, driven mainly by an increase in order volume, indicating a healthy growth momentum [1] - Shopee's revenue increased by 34% year-on-year, significantly exceeding market expectations [1] Financial Services Growth - The financial services segment, Monee, experienced a revenue increase of 79% year-on-year, with a net increase in loan balances of $1 billion [1] Gaming Sector Update - The gaming segment, Garena, reported a year-on-year revenue increase of 23%, although this represented a slight slowdown compared to the previous quarter, it still marginally exceeded conservative market expectations [1]

Core Viewpoint - Sea Limited reported strong financial performance in Q2 2025, with revenue of $5.259 billion, a year-on-year increase of 38.2%, exceeding market expectations by $300 million [1][15] - The company achieved a net profit of $414 million, marking a significant year-on-year growth of 418.3% [1] - The e-commerce platform Shopee saw a 25% year-on-year increase in gross merchandise value (GMV) in the first half of 2025, leading in order volume in the Brazilian market [1][3] Financial Performance - In Q2 2025, Sea Group's total revenue reached $4.973 billion, a 32% year-on-year increase and a 2.7% quarter-on-quarter increase, surpassing market expectations [3] - E-commerce contributed $3.62 billion (72.8% of total revenue), digital financial services (Monee) generated $810 million (16.3%), and digital entertainment (Garena) brought in $520 million (10.4%) [3] - Adjusted EBITDA was $760 million, a 71% year-on-year increase, with an EBITDA margin of 15.3%, a historical high [3] - Net profit reached $480 million, compared to a loss of $23 million in the same period last year, marking the first time the company achieved profitability for two consecutive quarters [3] Growth Drivers - E-commerce: GMV reached $35.2 billion, a 23% year-on-year increase, with order volume exceeding 3.8 billion, a 21% increase [3] - Digital Financial Services: Loan principal reached $6.8 billion, a 75% year-on-year increase, with total revenue growing by 58% [3][5] - Digital Entertainment: Game revenue grew by 18%, with "Free Fire" maintaining a strong user base and new game "Delta Force" performing well in Southeast Asia and the Middle East [6] Market Position and Highlights - In Southeast Asia, Shopee maintained its leading position despite competition from TikTok Shop, with GMV growth rates of 25% and 22% in Indonesia and Thailand, respectively [4] - In Brazil, GMV grew by 40%, achieving profitability for the first time in a single quarter, aided by effective localization strategies [4] - Content ecosystem upgrades included a rise in live/short video orders to 22%, with over 500,000 YouTube videos embedding Shopee product links [4] Digital Financial Services Synergy - Monee wallet had 120 million monthly active users, with over 60% of payments on Shopee coming from it [5] - Supply chain financing for sellers reached $1.2 billion, with interest rates 2-3% lower than traditional banks, enhancing seller loyalty [5] Gaming Business and Globalization - "Free Fire" saw a 120% year-on-year increase in daily active users in Africa, with in-game virtual goods revenue rising to 45% [6] - New game "Free City" launched in Argentina and the Philippines, generating over $50 million in its first month [6] Future Outlook and Strategic Focus - E-commerce efficiency improvements include plans to build 10 automated sorting centers in Southeast Asia by the end of 2025, aiming to increase 2-day delivery orders from 45% to 60% [7] - Digital financial services will extend cross-border payments and introduce innovative insurance products [7] - The gaming business will focus on building an IP ecosystem, with plans to launch a "Harry Potter" mobile game in Q1 2026, expected to generate over $300 million in its first year [7] Growth Certainty and Valuation - Sea's Q2 2025 results demonstrate resilience as a Southeast Asian tech giant, with a profitable e-commerce model and a growing digital financial services segment [8] - Despite short-term pressures from TikTok Shop and currency fluctuations, long-term growth potential remains strong, with e-commerce penetration in Southeast Asia at only 6.5% [8] - Current stock price has risen 750% from the IPO price of $17, reflecting optimistic market expectations for long-term potential [8]

Core Insights - Sea Limited reported revenue of $5.36 billion for the quarter ended June 2025, reflecting a year-over-year increase of 37.2% and a surprise of +4.67% over the Zacks Consensus Estimate of $5.12 billion [1] - The company's EPS was $0.85, up from $0.46 in the same quarter last year, although it fell short of the consensus estimate of $0.99 by -14.14% [1] Financial Performance Metrics - Gross GMV for E-commerce reached $29.8 million, exceeding the average estimate of $28.6 million [4] - Quarterly active users totaled 665, slightly above the average estimate of 664 [4] - Gross Orders in E-commerce were 3.3 billion, surpassing the average estimate of 3.03 billion [4] - Bookings for Digital Entertainment amounted to $661.3 million, compared to the estimated $635.72 million [4] - Quarterly paying users were 62, exceeding the average estimate of 60 [4] - Revenue from Digital Entertainment was $559.12 million, above the average estimate of $520.42 million [4] - Revenue from E-Commerce reached $3.77 billion, compared to the average estimate of $3.62 billion, marking a +33.7% year-over-year change [4] - Revenue from Digital Financial Services was $882.81 million, exceeding the average estimate of $799.75 million, with a +70% year-over-year increase [4] - Revenue from Other Services was $46.48 million, surpassing the average estimate of $36.66 million, reflecting a +51.4% year-over-year change [4] - Adjusted EBITDA for Digital Entertainment was $368.19 million, slightly above the average estimate of $357.85 million [4] - Adjusted EBITDA for E-commerce was $227.69 million, below the average estimate of $248.63 million [4] - Unallocated expenses showed an adjusted EBITDA of -$8.14 million, better than the average estimate of -$20.22 million [4] Stock Performance - Sea Limited's shares have returned -3.2% over the past month, contrasting with the Zacks S&P 500 composite's +2% change [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance relative to the broader market in the near term [3]

Exhibit 99.1 Sea Limited Reports Second Quarter 2025 Results Singapore, August 12, 2025 – Sea Limited (NYSE: SE) ("Sea" or the "Company") today announced its financial results for the second quarter ended June 30, 2025. "The momentum from our strong start to 2025 has continued into the second quarter. All three of our businesses have delivered robust, healthy growth, giving us greater confidence of delivering another great year," said Forrest Li, Sea's Chairman and Chief Executive Officer. "Given the high p ...

Core Insights - Sea Limited has shown significant growth, with shares increasing by 20.5% following strong revenue results despite missing earnings expectations [1][2] - The company reported a 38.2% increase in revenue to $5.3 billion in Q2, while earnings per share were $0.65, missing estimates by $0.04 [2][4] Revenue Growth by Segment - E-commerce revenue grew by 33.7%, driven by a 28.2% increase in gross market value (GMV), with segment EBITDA turning from a loss of $9.2 million to a profit of $227.7 million [3] - Digital financial services saw a remarkable 70% revenue growth, with adjusted EBITDA rising 55% to $255.5 million [3] - Digital entertainment, including mobile games, experienced a 23.2% increase in bookings year-over-year, with adjusted EBITDA up 21.6% to $368.2 million [3] Profitability and Milestones - The overall growth resulted in a 364% increase in earnings per share, indicating a significant improvement in profitability from a near-breakeven level a year ago [4] - Sea celebrated the eighth anniversary of its game Free Fire, which continues to show double-digit growth in bookings [6] - The company marked its fifth anniversary in Brazil, claiming to be the e-commerce leader in the country by order volume [7] Expansion and Adoption - Sea's digital finance segment is gaining traction outside the Shopee platform, with a 40% quarter-over-quarter growth in off-Shopee SPayLater loans, now comprising over 20% of the portfolio in Malaysia [8] - The company anticipates 30% bookings growth in the digital entertainment sector for the year, reflecting a recovery from the pandemic's impact [6] Valuation Perspective - Sea is trading at 46 times this year's earnings estimates and 31 times 2026's estimates, which is considered reasonable given its strong growth across multiple high-growth businesses [9]

Core Insights - Sea Ltd reported second-quarter earnings of $0.65 per share on revenue of $5.26 billion, exceeding estimates, driven by growth from subsidiaries like Shopee and its gaming division [1] - The stock surged 19.4% to $174.62, reaching a three-year high of $176.36, and is up 62.4% year-to-date, marking its seventh consecutive post-earnings win [2] - Of the 21 firms covering the stock, 16 rated it a "buy" or better, while short interest represents 5.2% of the stock's available float, indicating potential buying power [3] Stock Performance - The stock is experiencing its best session since March 2023, following a rally that began in May after rebounding from April lows [2] - Options trading volume is significantly high, operating at 13 times the intraday average, with a notable interest in the October 180 call [3]