Amazon stock has soared fivefold since 2016, but if you missed out on those gains, Sea Limited might offer another chance. Amazon (AMZN 0.58%) was founded in 1994 to sell products using the Internet. Since then, it has become the dominant player in the e-commerce industry. However, the company has also expanded into other areas, such as cloud computing, streaming, and digital advertising. Shares of Amazon have climbed more than fivefold since 2016, and while e-commerce remains the company's largest source o ...

Sea Limited has returned to double-digit revenue growth on an overall basis. Sea Limited (SE 3.25%) may finally benefit from its role as the premier e-commerce conglomerate in Southeast Asia. Much like Amazon in the U.S. and MercadoLibre in Latin America, it is the leading e-commerce company in its respective region. That helped the stock peak above $372 at the height of the 2021 bull market. Unfortunately, missteps such as expanding Shopee's e-commerce operations outside of Southeast Asia and the reduced p ...

There have been multiple catalysts for MercadoLibre in recent years, but one can't overlook how much more compelling the e-commerce platform is today compared to years past. In Q1 2019, less than half of the items on the company's platform could be delivered in 48 hours or less. Now it even offers same-day shipping in certain cases with 52% of Q1 2024 shipments arriving on the same day or next day. Reducing delivery times can help drive adoption. For those who have been holding shares of Latin American e-co ...

Despite Sea Limited's soaring cash flow, its shares are trading at a reasonable price. A solid first-quarter report recently boosted shares of Sea Limited (SE 3.98%). The company also convinced several Wall Street analysts that its business is worth more than its market valuation. Benchmark analyst Fawne Jiang recently raised her price target for the e-commerce, entertainment, and finance conglomerate to $87 per share. The new target implies a gain of about 31% from recent prices. Some good reasons to be bu ...

Sea Limited's growth story might be back on track. In this video, I will go over Sea Limited's (SE 4.01%) earnings report, explain why the stock is up 66% this year, and make some predictions for investors. *Stock prices used were from the trading day of May 14, 2024. The video was published on May 15, 2024. ...

Sea Limited (SE) reported earnings of 21 cents per share in first-quarter 2024, missing the Zacks Consensus Estimate of 41.67%. The company posted earnings of 61 cents per share in the year-ago quarter. The company's shares have gained 63.6% year to date compared with the Zacks Computer & Technology sector's rise of 12.5%. Top-Line Details Digital entertainment revenues totaled $458 million, missing the Zacks Consensus Estimate by 15.31% and declining 15% year over year. In the first quarter, Garena experie ...

[Executive Summary & Highlights](index=1&type=section&id=Executive%20Summary%20%26%20Highlights) Sea Limited reported a strong start to 2024 with robust growth across all three businesses, despite a shift to net loss and a decrease in adjusted EBITDA, driven by e-commerce investments [CEO Statement](index=1&type=section&id=CEO%20Statement) Sea Limited's CEO, Forrest Li, reported a strong start to 2024 with all three businesses (Shopee, SeaMoney, Garena) achieving robust growth and improved profit profiles - All three businesses (Shopee, SeaMoney, Garena) delivered **strong growth** with an improved profit profile, making the company leaner, fitter, and savvier[3](index=3&type=chunk) - Shopee achieved its **highest ever quarterly orders, GMV, and revenue**, with integrated logistics (SPX Express) enhancing customer experience[3](index=3&type=chunk) - SeaMoney continued **strong growth and profitability** while maintaining prudent risk management, with anticipated further growth in digital financial services[3](index=3&type=chunk) - Garena returned to **positive growth**, driven by Free Fire's strong performance, aiming to build it into an evergreen franchise[3](index=3&type=chunk) [Group Highlights](index=1&type=section&id=Group%20Highlights) Sea Limited reported a **22.8% year-on-year increase in total GAAP revenue** to US$3.7 billion, with gross profit up 9.7%, but recorded a net loss of US$23.0 million and adjusted EBITDA decreased by 20.9% Group Financial Highlights (Q1 2024 vs Q1 2023) | Metric | Q1 2024 (US$ million) | Q1 2023 (US$ million) | YoY Change (%) | | :-------------------- | :-------------------- | :-------------------- | :------------- | | Total GAAP Revenue | 3,700.0 | 3,013.0 | 22.8% | | Total Gross Profit | 1,600.0 | 1,459.0 | 9.7% | | Total Net Loss (Income) | (23.0) | 87.3 | (126.3)% | | Total Adjusted EBITDA | 401.1 | 507.2 | (20.9)% | | Cash, Cash Equivalents, Short-term Investments, and Other Treasury Investments (as of March 31, 2024) | 8,600.0 | N/A | N/A | [E-commerce Highlights](index=2&type=section&id=E-commerce%20Highlights) The E-commerce segment demonstrated strong growth, with gross orders increasing by **56.8%** and GMV by **36.3%** year-on-year, but adjusted EBITDA turned negative due to decreased performance in Asia markets E-commerce Key Metrics (Q1 2024 vs Q1 2023) | Metric | Q1 2024 | Q1 2023 | YoY Change (%) | | :-------------------------------- | :------ | :------ | :------------- | | Gross Orders (billion) | 2.6 | 1.65 | 56.8% | | GMV (US$ billion) | 23.6 | 17.3 | 36.3% | | GAAP Revenue (US$ billion) | 2.7 | 2.03 | 32.9% | | Core Marketplace Revenue (US$ billion) | 1.7 | 1.16 | 47.0% | | Value-added Services Revenue (US$ million) | 722.5 | 669.6 | 7.9% | | Adjusted EBITDA (US$ million) | (21.7) | 207.7 | (110.4)% | | Asia Markets Adjusted EBITDA (US$ million) | 11.5 | 275.8 | (95.8)% | | Other Markets Adjusted EBITDA (US$ million) | (33.2) | (68.1) | 51.2% | | Brazil Contribution Margin Loss per Order (US$) | (0.04) | (0.33) | 87.9% improvement | [Digital Financial Services Highlights](index=2&type=section&id=Digital%20Financial%20Services%20Highlights) The Digital Financial Services segment continued its strong performance, with GAAP revenue increasing by **21.0%** and adjusted EBITDA by **50.3%** year-on-year, while maintaining a stable non-performing loans ratio Digital Financial Services Key Metrics (Q1 2024 vs Q1 2023) | Metric | Q1 2024 (US$ million) | Q1 2023 (US$ million) | YoY Change (%) | | :-------------------------------- | :-------------------- | :-------------------- | :------------- | | GAAP Revenue | 499.4 | 412.8 | 21.0% | | Adjusted EBITDA | 148.7 | 98.9 | 50.3% | | Consumer and SME Loans Principal Outstanding (as of March 31, 2024, US$ billion) | 3.3 | 2.56 | 28.7% | | Non-performing Loans Past Due by >90 Days (% of principal outstanding) | 1.4% | 1.4% (Q4 2023) | Stable QoQ | [Digital Entertainment Highlights](index=2&type=section&id=Digital%20Entertainment%20Highlights) Digital Entertainment saw a **10.8% increase in bookings** and a **27.0% rise in adjusted EBITDA**, with improved user engagement metrics, despite a 15.1% decrease in GAAP revenue Digital Entertainment Key Metrics (Q1 2024 vs Q1 2023) | Metric | Q1 2024 | Q1 2023 | YoY Change (%) | | :-------------------------------- | :------ | :------ | :------------- | | Bookings (US$ million) | 512.1 | 462.2 | 10.8% | | GAAP Revenue (US$ million) | 458.1 | 539.7 | (15.1)% | | Adjusted EBITDA (US$ million) | 292.2 | 230.1 | 27.0% | | Adjusted EBITDA as % of Bookings | 57.1% | 49.8% | 7.3 pp increase | | Quarterly Active Users (million) | 594.7 | 491.5 | 21.0% | | Quarterly Paying Users (million) | 48.9 | 37.7 | 29.8% | | Paying User Ratio | 8.2% | 7.7% | 0.5 pp increase | | Average Bookings per User (US$) | 0.86 | 0.94 | (8.5)% | [Unaudited Summary of Financial Results (Overview)](index=4&type=section&id=Unaudited%20Summary%20of%20Financial%20Results%20(Overview)) Sea Limited's Q1 2024 consolidated results show increased revenue and gross profit, but a net loss and decreased total adjusted EBITDA, primarily due to higher sales and marketing expenses and e-commerce segment performance [Consolidated Financial Performance](index=4&type=section&id=Consolidated%20Financial%20Performance) Sea Limited's consolidated financial results for Q1 2024 show a **22.8% increase in total revenue**, reaching US$3.73 billion, and a **9.7% rise in gross profit** to US$1.55 billion, but reported a net loss of US$23.0 million Unaudited Summary of Financial Results (Q1 2024 vs Q1 2023) | For the Three Months ended March 31, | 2023 (US$ thousands) | 2024 (US$ thousands) | YoY% | | :----------------------------------- | :------------------- | :------------------- | :--- | | Revenue | 3,041,104 | 3,734,329 | 22.8% | | Cost of revenue | (1,624,414) | (2,180,579) | 34.2% | | Gross profit | 1,416,690 | 1,553,750 | 9.7% | | Other operating income | 57,880 | 43,977 | (24.0)% | | Sales and marketing expenses | (400,143) | (769,635) | 92.3% | | General and administrative expenses | (333,377) | (290,854) | (12.8)% | | Provision for credit losses | (177,439) | (161,767) | (8.8)% | | Research and development expenses | (320,512) | (304,379) | (5.0)% | | Impairment of goodwill | (117,875) | - | - | | Total operating expenses | (1,291,466) | (1,482,658) | 14.8% | | Operating income | 125,224 | 71,092 | (43.2)% | | Non-operating income (loss), net | 22,522 | (17,541) | (177.9)% | | Income tax expense | (61,898) | (78,760) | 27.2% | | Share of results of equity investees | 1,444 | 2,209 | 53.0% | | Net income (loss) | 87,292 | (23,000) | (126.3)% | | Basic EPS | 0.16 | (0.04) | (125.0)% | | Diluted EPS | 0.15 | (0.04) | (126.7)% | [Segment-wise Adjusted EBITDA](index=4&type=section&id=Segment-wise%20Adjusted%20EBITDA) Total adjusted EBITDA for Sea Limited decreased by **20.9%** year-on-year to US$401.1 million, primarily driven by the E-commerce segment's shift from positive to negative adjusted EBITDA Adjusted EBITDA by Segment (Q1 2024 vs Q1 2023) | Segment | Q1 2023 (US$ thousands) | Q1 2024 (US$ thousands) | YoY% | | :--------------------------- | :---------------------- | :---------------------- | :--- | | Digital Entertainment | 230,055 | 292,208 | 27.0% | | E-commerce | 207,714 | (21,700) | (110.4)% | | Digital Financial Services | 98,938 | 148,658 | 50.3% | | Other Services | (21,941) | (10,671) | (51.4)% | | Unallocated expenses | (7,594) | (7,346) | (3.3)% | | Total adjusted EBITDA | 507,172 | 401,149 | (20.9)% | [Detailed Financial Review (Q1 2024 vs Q1 2023)](index=5&type=section&id=Detailed%20Financial%20Review%20(Q1%202024%20vs%20Q1%202023)) A detailed review reveals significant revenue growth driven by e-commerce, but also a substantial increase in sales and marketing expenses and non-operating losses, leading to a net loss [Revenue Analysis](index=5&type=section&id=Revenue%20Analysis) Total GAAP revenue increased by **22.8% to US$3.7 billion** in Q1 2024, driven by significant growth in E-commerce and other services, despite a decrease in Digital Entertainment GAAP revenue Revenue by Segment (Q1 2024 vs Q1 2023) | Revenue Segment | Q1 2023 (US$ thousands) | Q1 2024 (US$ thousands) | YoY Change (%) | | :-------------------------- | :---------------------- | :---------------------- | :------------- | | Digital Entertainment | 539,686 | 458,119 | (15.1)% | | E-commerce and other services | 2,259,577 | 2,950,020 | 30.6% | | Sales of goods | 241,841 | 326,190 | 34.9% | | Total Revenue | 3,041,104 | 3,734,329 | 22.8% | - Digital Entertainment GAAP revenue decreased due to **lower recognition of accumulated deferred revenue** from previous quarters, despite an increase in current bookings[13](index=13&type=chunk) - E-commerce and other services GAAP revenue growth was primarily driven by **GMV growth in e-commerce** and the **expansion of the credit business**[13](index=13&type=chunk) [Cost of Revenue Analysis](index=5&type=section&id=Cost%20of%20Revenue%20Analysis) Total cost of revenue increased by **34.2% to US$2.2 billion** in Q1 2024, outpacing revenue growth, primarily due to higher logistics costs in E-commerce and increased cost of goods sold Cost of Revenue by Segment (Q1 2024 vs Q1 2023) | Cost of Revenue Segment | Q1 2023 (US$ thousands) | Q1 2024 (US$ thousands) | YoY Change (%) | | :-------------------------- | :---------------------- | :---------------------- | :------------- | | Digital Entertainment | (173,366) | (155,977) | (10.0)% | | E-commerce and other services | (1,241,328) | (1,715,054) | 38.2% | | Cost of goods sold | (209,720) | (309,548) | 47.6% | | Total Cost of Revenue | (1,624,414) | (2,180,579) | 34.2% | - Increase in E-commerce and other services cost of revenue was primarily driven by an **increase in logistics costs** as orders volume grew[13](index=13&type=chunk) [Operating Expenses](index=5&type=section&id=Operating%20Expenses) Total operating expenses increased by **14.8% to US$1.48 billion** in Q1 2024, primarily due to a **92.3% surge in sales and marketing expenses**, largely from E-commerce and Digital Financial Services Operating Expenses (Q1 2024 vs Q1 2023) | Operating Expense Category | Q1 2023 (US$ thousands) | Q1 2024 (US$ thousands) | YoY Change (%) | | :-------------------------------- | :---------------------- | :---------------------- | :------------- | | Other operating income | 57,880 | 43,977 | (24.0)% | | Sales and marketing expenses | (400,143) | (769,635) | 92.3% | | General and administrative expenses | (333,377) | (290,854) | (12.8)% | | Provision for credit losses | (177,439) | (161,767) | (8.8)% | | Research and development expenses | (320,512) | (304,379) | (5.0)% | | Impairment of goodwill | (117,875) | - | - | | Total operating expenses | (1,291,466) | (1,482,658) | 14.8% | Sales and Marketing Expenses by Segment (Q1 2024 vs Q1 2023) | Sales and Marketing Segment | Q1 2023 (US$ thousands) | Q1 2024 (US$ thousands) | YoY% | | :-------------------------- | :---------------------- | :---------------------- | :--- | | E-commerce | 338,189 | 675,881 | 99.9% | | Digital Financial Services | 20,159 | 56,768 | 181.6% | | Digital Entertainment | 23,447 | 19,376 | (17.4)% | [Non-Operating Income (Loss), Net](index=6&type=section&id=Non-Operating%20Income%20(Loss)%2C%20Net) Sea Limited recorded a net non-operating loss of US$(17.5) million in Q1 2024, a significant reversal from a net non-operating income of US$22.5 million in Q1 2023, primarily due to investment losses - Net non-operating loss of **US$(17.5) million** in Q1 2024, compared to net non-operating income of US$22.5 million in Q1 2023[20](index=20&type=chunk) - The loss was primarily due to **US$111.2 million in investment losses**, partially offset by US$87.1 million in interest income and a US$27.1 million net gain from debt extinguishment[20](index=20&type=chunk)[21](index=21&type=chunk) - The debt extinguishment gain resulted from repurchasing **US$171.9 million aggregate principal amount of 0.25% convertible senior notes** due 2026 for US$143.9 million cash consideration[21](index=21&type=chunk) [Income Tax Expense](index=7&type=section&id=Income%20Tax%20Expense) Income tax expense increased by **27.2% to US$78.8 million** in Q1 2024, up from US$61.9 million in Q1 2023 Income Tax Expense (Q1 2024 vs Q1 2023) | Metric | Q1 2023 (US$ thousands) | Q1 2024 (US$ thousands) | YoY Change (%) | | :---------------- | :---------------------- | :---------------------- | :------------- | | Income Tax Expense | (61,898) | (78,760) | 27.2% | [Net Income (Loss)](index=7&type=section&id=Net%20Income%20(Loss)) Sea Limited reported a net loss of **US$(23.0) million** in Q1 2024, a significant decline from a net income of US$87.3 million in Q1 2023, primarily driven by increased operating expenses and non-operating investment losses Net Income (Loss) (Q1 2024 vs Q1 2023) | Metric | Q1 2023 (US$ thousands) | Q1 2024 (US$ thousands) | YoY Change (%) | | :-------------- | :---------------------- | :---------------------- | :------------- | | Net Income (Loss) | 87,292 | (23,000) | (126.3)% | [Earnings (Loss) Per Share](index=7&type=section&id=Earnings%20(Loss)%20Per%20Share) Basic and diluted earnings per share shifted from positive in Q1 2023 to a **loss of US$(0.04) per share** in Q1 2024, reflecting the company's overall net loss Earnings (Loss) Per Share (Q1 2024 vs Q1 2023) | Metric | Q1 2023 (US$) | Q1 2024 (US$) | YoY Change (%) | | :---------- | :------------ | :------------ | :------------- | | Basic EPS | 0.16 | (0.04) | (125.0)% | | Diluted EPS | 0.15 | (0.04) | (126.7)% | [Non-GAAP Financial Measures](index=10&type=section&id=Non-GAAP%20Financial%20Measures) This section defines non-GAAP adjusted EBITDA for segment performance evaluation and provides a detailed reconciliation, highlighting its limitations compared to GAAP measures [Definition and Limitations](index=10&type=section&id=Definition%20and%20Limitations) Sea Limited uses non-GAAP financial measures, specifically Adjusted EBITDA for its segments and total, to evaluate operating performance and identify underlying trends, while acknowledging their limitations - Adjusted EBITDA for Digital Entertainment includes operating income (loss) plus depreciation and amortization expenses, and the **net effect of changes in deferred revenue and its related cost**[33](index=33&type=chunk) - Adjusted EBITDA for E-commerce, Digital Financial Services, and Other Services represents operating income (loss) before share-based compensation and impairment of goodwill plus depreciation and amortization expenses[33](index=33&type=chunk) - Non-GAAP financial measures have limitations as analytical tools and should not be considered in isolation or as an alternative to GAAP measures[32](index=32&type=chunk) [Reconciliation of Adjusted EBITDA](index=11&type=section&id=Reconciliation%20of%20Adjusted%20EBITDA) The reconciliation of Adjusted EBITDA for Q1 2024 shows that while Digital Entertainment and Digital Financial Services contributed positively, E-commerce reported a negative adjusted EBITDA, with unallocated expenses impacting consolidated operating income Adjusted EBITDA Reconciliation by Segment (Q1 2024) | Metric (US$ thousands) | E-commerce | Digital Financial Services | Digital Entertainment | Other Services | Unallocated expenses | Consolidated | | :--------------------- | :--------- | :----------------------- | :-------------------- | :------------- | :------------------- | :----------- | | Operating (loss) income | (97,335) | 134,443 | 236,198 | (13,787) | (188,427) | 71,092 | | Net effect of changes in deferred revenue and its related cost | - | - | 46,701 | - | - | 46,701 | | Depreciation and Amortization | 75,635 | 14,215 | 9,309 | 3,116 | - | 102,275 | | Share-based compensation | - | - | - | - | 181,081 | 181,081 | | Adjusted EBITDA | (21,700) | 148,658 | 292,208 | (10,671) | (7,346) | 401,149 | Adjusted EBITDA Reconciliation by Segment (Q1 2023) | Metric (US$ thousands) | E-commerce | Digital Financial Services | Digital Entertainment | Other Services | Unallocated expenses | Consolidated | | :--------------------- | :--------- | :----------------------- | :-------------------- | :------------- | :------------------- | :----------- | | Operating income (loss) | 115,844 | 84,568 | 274,594 | (25,432) | (324,350) | 125,224 | | Net effect of changes in deferred revenue and its related cost | - | - | (55,003) | - | - | (55,003) | | Depreciation and Amortization | 91,870 | 14,370 | 10,464 | 3,491 | - | 120,195 | | Share-based compensation | - | - | - | - | 198,881 | 198,881 | | Impairment of goodwill | - | - | - | - | 117,875 | 117,875 | | Adjusted EBITDA | 207,714 | 98,938 | 230,055 | (21,941) | (7,594) | 507,172 | [Consolidated Financial Statements](index=12&type=section&id=Consolidated%20Financial%20Statements) The consolidated financial statements show increased total assets and liabilities, a shift to net loss in operations, and decreased cash from operating activities, with significant cash used in investing [Interim Condensed Consolidated Statement of Operations](index=12&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Operations) The interim condensed consolidated statement of operations for Q1 2024 shows a total revenue of **US$3.73 billion**, up from US$3.04 billion in Q1 2023, but a net loss of US$23.0 million Interim Condensed Consolidated Statement of Operations (Q1 2024 vs Q1 2023) | Metric (US$ thousands) | Q1 2023 | Q1 2024 | | :--------------------- | :---------- | :---------- | | Total revenue | 3,041,104 | 3,734,329 | | Total cost of revenue | (1,624,414) | (2,180,579) | | Gross profit | 1,416,690 | 1,553,750 | | Total operating expenses | (1,291,466) | (1,482,658) | | Operating income | 125,224 | 71,092 | | Net income (loss) | 87,292 | (23,000) | | Basic EPS | 0.16 | (0.04) | | Diluted EPS | 0.15 | (0.04) | [Interim Condensed Consolidated Balance Sheets](index=13&type=section&id=Interim%20Condensed%20Consolidated%20Balance%20Sheets) As of March 31, 2024, total assets increased to **US$19.10 billion** from US$18.88 billion, driven by increases in current assets, while total liabilities also increased to US$12.33 billion Interim Condensed Consolidated Balance Sheets (as of March 31, 2024 vs Dec 31, 2023) | Metric (US$ thousands) | Dec 31, 2023 | Mar 31, 2024 | | :--------------------- | :----------- | :----------- | | Total current assets | 11,773,934 | 12,381,271 | | Total non-current assets | 7,109,298 | 6,713,769 | | Total assets | 18,883,232 | 19,095,040 | | Total current liabilities | 8,168,941 | 8,487,205 | | Total non-current liabilities | 4,016,706 | 3,838,933 | | Total liabilities | 12,185,647 | 12,326,138 | | Total shareholders' equity | 6,697,585 | 6,768,902 | [Interim Condensed Consolidated Statements of Cash Flows](index=16&type=section&id=Interim%20Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash generated from operating activities decreased to **US$468.5 million** in Q1 2024, while net cash used in investing activities significantly increased to US$853.8 million, primarily due to securities placements and loans receivable Interim Condensed Consolidated Statements of Cash Flows (Q1 2024 vs Q1 2023) | Metric (US$ thousands) | Q1 2023 | Q1 2024 | | :------------------------------------- | :-------- | :-------- | | Net cash generated from operating activities | 605,536 | 468,494 | | Net cash used in investing activities | (673,772) | (853,786) | | Net cash generated from financing activities | 59,214 | 183,831 | | Net increase (decrease) in cash, cash equivalents and restricted cash | 40,486 | (274,280) | | Cash, cash equivalents and restricted cash at end of the period | 7,650,870 | 3,969,377 | - Net cash used in investing activities was primarily attributable to **net placement of US$423 million in securities** and an increase in loans receivable of US$377 million[41](index=41&type=chunk) - Net cash generated from financing activities was primarily due to an **increase in bank customer deposits of US$363 million**, offset by US$144 million used for convertible notes repurchase[41](index=41&type=chunk) [Segment Information](index=17&type=section&id=Segment%20Information) Segment information highlights E-commerce as the largest revenue contributor but also the primary driver of operating loss, while Digital Financial Services and Digital Entertainment remain profitable [Segment Revenue and Operating Income (Loss)](index=17&type=section&id=Segment%20Revenue%20and%20Operating%20Income%20(Loss)) In Q1 2024, E-commerce generated the largest revenue at **US$2.75 billion**, followed by Digital Financial Services at US$499.4 million, with Digital Entertainment and Digital Financial Services reporting positive operating income Segment Revenue and Operating Income (Loss) (Q1 2024) | Segment (US$ thousands) | Revenue | Operating (loss) income | | :---------------------- | :-------- | :---------------------- | | E-commerce | 2,747,768 | (97,335) | | Digital Financial Services | 499,364 | 134,443 | | Digital Entertainment | 458,119 | 236,198 | | Other Services | 29,078 | (13,787) | | Unallocated expenses | - | (188,427) | | Consolidated | 3,734,329 | 71,092 | Segment Revenue and Operating Income (Loss) (Q1 2023) | Segment (US$ thousands) | Revenue | Operating income (loss) | | :---------------------- | :-------- | :---------------------- | | E-commerce | 2,067,071 | 115,844 | | Digital Financial Services | 412,844 | 84,568 | | Digital Entertainment | 539,686 | 274,594 | | Other Services | 21,503 | (25,432) | | Unallocated expenses | - | (324,350) | | Consolidated | 3,041,104 | 125,224 | [Additional Information](index=8&type=section&id=Additional%20Information) This section provides details on the Q1 2024 earnings webcast, an overview of Sea Limited's global internet businesses, and important disclaimers regarding forward-looking statements [Webcast and Conference Call](index=8&type=section&id=Webcast%20and%20Conference%20Call) Sea Limited's management hosted a conference call on May 14, 2024, at 7:30 AM U.S. Eastern Time to discuss the company's business and financial performance - Conference call held on **May 14, 2024, at 7:30 AM U.S. Eastern Time** to review business and financial performance[26](index=26&type=chunk)[27](index=27&type=chunk) - Webcast link: https://events.q4inc.com/attendee/321830000; replay available on www.sea.com/investor/home[27](index=27&type=chunk) [About Sea Limited](index=8&type=section&id=About%20Sea%20Limited) Sea Limited (NYSE: SE) is a global consumer internet company founded in Singapore in 2009, aiming to improve lives through technology with its core businesses: Garena, Shopee, and SeaMoney - Sea Limited is a global consumer internet company founded in Singapore in 2009, with a mission to better lives with technology[28](index=28&type=chunk) - Operates three core businesses: **Garena (digital entertainment), Shopee (e-commerce), and SeaMoney (digital financial services)**[28](index=28&type=chunk) - Shopee is the largest pan-regional e-commerce platform in Southeast Asia and Taiwan, with a significant presence in Latin America, and SeaMoney is a leading digital financial services provider in Southeast Asia and growing in Brazil[28](index=28&type=chunk) [Forward-Looking Statements](index=9&type=section&id=Forward-Looking%20Statements) This announcement contains forward-looking statements, identified by terms like 'may,' 'expect,' and 'guidance,' which are subject to risks and uncertainties, and actual results may differ materially - The announcement contains forward-looking statements under the **'safe harbor' provisions of the U.S. Private Securities Litigation Reform Act of 1995**[30](index=30&type=chunk) - These statements involve inherent risks and uncertainties, and actual results could differ materially due to factors such as business development, financial condition, market growth, competition, government policies, and general economic conditions[30](index=30&type=chunk) - Sea undertakes no obligation to update any forward-looking statement, except as required under applicable law[30](index=30&type=chunk)

Shares of Sea Limited have returned +22.3% over the past month versus the Zacks S&P 500 composite's +2% change. The stock currently has a Zacks Rank #2 (Buy), indicating that it could outperform the broader market in the near term. Revenue- Digital entertainment: $458.12 million versus $540.94 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a -15.1% change. Revenue- Other Services: $29.08 million versus $40.43 million estimated by two analysts on averag ...

Financial Data and Key Metrics Changes - The company reported a total GAAP revenue increase of 23% year-on-year to $3.7 billion, driven primarily by GMV growth in e-commerce and the credit business [21][22] - Adjusted EBITDA for the first quarter was $401 million, down from $507 million in the same quarter of the previous year [21] - The net loss for the first quarter was $23 million, compared to a net income of $87 million in the first quarter of 2023 [22] Business Line Data and Key Metrics Changes - E-commerce segment saw gross orders increase by 57%, GMV up by 36%, and revenue up by 33% year-on-year [6] - Digital Financial Services (DFS) revenue grew by 21% year-on-year to $499 million, with adjusted EBITDA up by 50% to $149 million [10] - Digital entertainment bookings were $512 million, with GAAP revenue of $458 million and adjusted EBITDA of $292 million [10] Market Data and Key Metrics Changes - In Asia, adjusted EBITDA for e-commerce was $11 million, down from $276 million year-on-year, while losses in other markets narrowed from $68 million to $33 million [10] - The contribution margin loss per order in Brazil improved by nearly 88% year-on-year to reach $0.94 [10] Company Strategy and Development Direction - The company aims to enhance price competitiveness, strengthen its content ecosystem, and improve service quality for buyers in its e-commerce operations [47] - The credit business is a primary driver of revenue growth, with a focus on prudent risk management and gradual increases in credit limits for users [8][19] - The company is committed to building Free Fire into a long-term franchise by focusing on user experience and continuous product improvements [56] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to navigate challenges and adapt to changing environments, emphasizing a strong start to 2024 [1] - The competitive landscape has been stable recently, with management prepared to evaluate responses to any aggressive moves by competitors [54] - The company anticipates further growth in digital financial services and is optimistic about sustaining user engagement in gaming [49][55] Other Important Information - Shopee's operational priorities for 2024 include enhancing price competitiveness and improving logistics capabilities, which are seen as key differentiators [47] - The company has implemented measures to improve operational efficiency, such as managing the return and refund process directly [7] Q&A Session Summary Question: How does the company ensure sustainable growth while managing competition? - Management emphasized focusing on long-term competitive advantages such as cost efficiency and service quality to outcompete rivals [30][54] Question: What are the drivers behind the strong GMV growth? - Management noted that seasonality, particularly due to Lunar New Year and Ramadan, contributed to GMV growth, alongside execution improvements [32] Question: What is the outlook for sales and marketing expenses? - A reduction in sales and marketing expenses was noted, attributed to improved performance in the marketplace and live streaming [34][43] Question: How does the company view its logistics strategy? - The company highlighted that over 50% of orders in Asia and 70% in Brazil are fulfilled through its own logistics, with plans to increase this percentage [72][98] Question: What is the outlook for the digital financial services segment? - Management indicated that customer acquisition costs are impacting margins, but funding costs are improving, suggesting a focus on optimizing user acquisition strategies [92][93]

Sea Limited (SE) is set to release its first-quarter 2024 results on May 14.The Zacks Consensus Estimate for earnings has been unchanged at 36 cents in the past 30 days. The figure declined 40.98% year over year.The consensus mark for revenues is currently pegged at $3.62 billion, indicating 22.02% growth from the year-ago quarter’s reported figure.SE’s earnings beat the Zacks Consensus Estimate in one of the trailing four quarters while missing the same in the remaining three, the negative earnings surpris ...