Core Viewpoint - Sea Limited is a leading player in the digital economy with significant growth in e-commerce, digital financial services, and digital entertainment, showcasing strong revenue growth and profitability despite being below its all-time high stock price [1][2][10]. E-commerce Segment - Shopee, Sea's e-commerce platform, is the largest in Southeast Asia, with over 10.9 billion orders placed and $100.5 billion spent in the last year [3]. - The company has improved Shopee's efficiency, with nearly half of all orders delivered in two days or less, resulting in lower costs per order [4]. - Revenue from the e-commerce segment grew 41.3% to $3.7 billion in Q4 2024, contributing significantly to the overall revenue [9]. Digital Financial Services - SeaMoney, the digital financial services platform, had 26 million active users at the end of 2024, a 60% increase year-over-year, and a loan book that grew 64% to $5.1 billion [6]. - The platform offers merchant loans and buy now, pay later options, enhancing spending capabilities for both sellers and consumers [5]. Digital Entertainment - Sea's digital entertainment segment, led by the Garena game studio, saw 618 million quarterly active users in Q4 2024, a 16.9% increase from the previous year, but still below the 2021 peak of 725 million [7]. - Revenue from this segment increased by 1.6% to $519.1 million in Q4 2024, despite earlier declines [9]. Financial Performance - Sea generated $5.0 billion in total revenue in Q4 2024, marking a 36.9% year-over-year growth, the fastest rate in nearly three years [8]. - Total revenue for 2024 reached a record $16.8 billion, up 28.8%, with operating expenses increasing only 16.7% to $6.5 billion, allowing net income to grow 175% to $447.8 million [10][11]. - The company maintains a strong balance sheet with $10.4 billion in cash and equivalents, enabling further investment in growth [15]. Valuation and Market Position - Sea's price-to-sales (P/S) ratio has decreased to 4.9, a 47% discount to its average of 9.3 since going public, making the stock more attractive [14]. - Despite recent gains, the stock remains a value opportunity, supported by strong fundamentals and potential for further growth [16].

Core Viewpoint - The article discusses the investment position of Parkev Tatevosian, CFA, and mentions the involvement of The Motley Fool with Sea Limited, highlighting the potential for investment opportunities in the company [1]. Group 1 - Parkev Tatevosian has no position in any of the stocks mentioned [1] - The Motley Fool has positions in and recommends Sea Limited, indicating a positive outlook on the company's prospects [1] - The Motley Fool has a disclosure policy regarding its investment recommendations [1]

Core Insights - Sea Limited's shares increased by 8% following a strong earnings report that exceeded sales expectations [1] - The company reported its second consecutive profitable year with significant improvements in its margin profile [2] Financial Performance - In Q4, Sea's revenue grew by 37%, gross profits increased by 45%, and net income margin improved from -3% to 5% [2] - SeaMoney, the finance unit, achieved a revenue increase of 55% while Shopee became profitable in both Asia and Brazil [3] Operational Success - Sea's digital entertainment division, Garena, saw a 17% growth in quarterly active users and a 19% increase in gross bookings [3] - The overall performance in 2024 marked a significant turnaround compared to the challenges faced in 2023, including layoffs and an unprofitable Shopee unit [4] Market Position - Sea's forward price-to-earnings (P/E) ratio stands at 36, which is lower than peers Shopify and MercadoLibre, with P/E ratios of 42 and 67 respectively [5] - The company is increasingly viewed as a growth stock, driven by its leading units Shopee and Garena, along with the rapidly growing SeaMoney segment [5]

Investment Rating - The report maintains an "Outperform" rating for the company [3][5][14] Core Insights - The company's revenue for Q4 2024 reached $5 billion, representing a 37% year-over-year growth, primarily driven by e-commerce and digital financial services [1][8] - The net profit for the quarter was $2.4 million, with a net profit margin of 5% [1][8] - The adjusted EBITDA margins for e-commerce, gaming, and digital financial services were 4%, 56%, and 29% respectively, showing significant improvement compared to the previous year [1][8] E-commerce Business Summary - E-commerce revenue for Q4 2024 was $3.7 billion, up 41% year-over-year, attributed to a 24% increase in GMV and improved monetization rates [1][9] - The platform's monetization rate increased from 9.8% to 11.2% year-over-year, mainly driven by advertising monetization [1][9] - The company projects a 20% growth in e-commerce GMV for 2025, with continued improvement in profitability [1][9] Digital Financial Services Summary - Digital financial services generated $730 million in revenue for Q4 2024, a 55% increase year-over-year, mainly driven by credit services [2][13] - The adjusted EBITDA for this segment was $210 million, with a profit margin of 29% [2][13] - As of December 31, 2024, total receivables amounted to $5.1 billion, a 64% increase year-over-year, with a non-performing loan rate of 1.2% [2][13] Financial Forecast and Valuation - Revenue forecasts for 2025 and 2026 have been adjusted to $20.2 billion and $23.5 billion, respectively, reflecting a 6% and 9% increase [3][14] - The adjusted profit forecasts for 2025 and 2026 are $1.5 billion and $2.3 billion, with increases of 21% and 24% [3][14] - The target price has been revised to $150-$154, indicating an upside potential of 13%-16% [3][14]

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 stock 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 e-commerce business's profitability improvement is expected to drive rapid profit growth for the company [4].

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]