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]

Sea (SE) Q4 2024 Earnings Call March 04, 2025 07:30 AM ET Company Participants Rebecca Lee - Head of Investor RelationForrest Li - Founder, Chairman & CEOTony Hou - Group CFOSachin Salgaonkar - Managing DirectorThomas Chong - Managing Director Conference Call Participants Pang Vittayaamnuaykoon - AnalystAlicia Yap - AnalystDivya Kothiyal - AnalystPiyush Choudhary - Analyst Operator Good morning and good evening to all, and welcome to the Sea Limited Fourth Quarter and Full Year twenty twenty four Results Co ...

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]

Core Insights - Sea Limited (SE) shares are currently overvalued with a Value Score of F, trading at a forward 12-month Price/Sales ratio of 3.68, above its median of 2.62 and the industry's 3.11 [1][16] - SE shares have surged 27.2% year-to-date, outperforming the broader Zacks Computer & Technology sector's return of 3.5% and the Zacks Internet - Software industry's rise of 18.4% [3][4] - The company's strong performance is driven by consistent top-line growth in its core segments: e-commerce (Shopee), digital financial services (SeaMoney), and digital entertainment (Garena) [6][7] E-Commerce Segment - Shopee dominates the e-commerce space with a 25% year-over-year increase in gross merchandise value (GMV), indicating significant revenue growth [8] - The platform has improved monetization by optimizing market dynamics, resulting in higher commission rates and enhanced profitability [9] - In Q3, Shopee's loan book grew 70% year-over-year, with 4 million first-time borrowers added, reaching 24 million active loan users [10] Digital Financial Services - SeaMoney's growth is supported by the increasing number of active loan users and stable non-performing loan ratio at 1.2% [10] - The expansion of SPayLater has facilitated engagement with first-time borrowers, enhancing the financial services segment [10] Digital Entertainment Segment - Garena's digital entertainment segment saw total bookings increase by over 24% in Q3 2024, driven by the success of Free Fire, which has over 100 million daily active users [12] - Free Fire's user base grew by 25% year-over-year in Q3 2024, showcasing strong engagement and acquisition [12][13] - Garena is enhancing its gaming portfolio through partnerships, including a collaboration with Tencent to bring Delta Force to various regions [14] Financial Estimates - The Zacks Consensus Estimate for 2025 revenues is $21.01 billion, indicating a year-over-year growth of 24.18% [15] - The consensus earnings estimate is $4.05 per share, reflecting an 81.47% year-over-year increase [15] Market Challenges - Sea Limited faces rising competition in e-commerce, particularly in Southeast Asia, and the need for sustained investment in logistics and live streaming [16] - The company's stretched valuation remains a concern for investors [16]

Core Insights - SeaWorld San Diego is set to open a new exhibit titled "Jewels of the Sea: A Jellyfish Experience" on March 15, 2025, with Annual Pass Members receiving an exclusive preview [1][2] - The exhibit features a unique combination of jellyfish species, interactive displays, and educational components, emphasizing SeaWorld's commitment to innovation, conservation, and education [2][6] - The exhibit includes three distinct galleries showcasing various jellyfish species and immersive experiences, such as a 10-foot-tall living archway and a 14-foot-tall jellyfish aquarium [4][5] Exhibit Details - The "Realm of Jellies" gallery allows guests to observe and interact with jellyfish, providing insights into their life cycle and anatomy [3] - The "Jellyfish Passage" features a living archway of moon jellies and interactive displays, creating an ethereal atmosphere [4] - The "Medusa Gallery" offers a 360-degree immersive experience with vibrant LED visuals, showcasing different jellyfish species and their life stages [5] Conservation and Education - The exhibit highlights SeaWorld's conservation efforts, with jellyfish cultured through a propagation program that educates visitors on sustainable practices [6] - An exclusive "Jelly Up-Close Tour" is available for guests to learn about jellyfish care and biology, providing hands-on interaction [7] Annual Pass Benefits - Annual Pass Members can purchase passes and upgrade to the next tier for free, gaining early access to the exhibit and unlimited visits throughout the year [8]

Group 1: Exploration Permit and Project Details - Equinor ASA has received a permit from the Norwegian Offshore Directorate to drill an exploration well in the Barents Sea, specifically in the same license zone as the Johan Castberg oilfield [1] - The drilling project will utilize the Transocean Enabler semi-submersible rig, which features automated drilling control technology suitable for harsh environments [2] - The drilling activity is scheduled for April 2025, with Equinor holding a 46.3% working interest in production license 532, alongside partners Vår Energi (30%) and Petoro (23.7%) [2] Group 2: Potential Reserves and Financial Implications - Vår Energi's 2024 financial results suggest that the Skred prospect could contain an estimated 30 million barrels of oil equivalent on a gross basis [3] - The exploration well aims to discover new oil and gas reserves that could meet future energy requirements in the region, provided the resources are commercially viable [3] Group 3: Industry Comparisons and Rankings - Equinor currently holds a Zacks Rank of 3 (Hold), while other energy sector stocks like Sunoco LP and SM Energy have higher rankings of 1 (Strong Buy) [4] - Sunoco LP is a major motor fuel distributor in the U.S., offering consistent returns to unitholders through a higher distribution yield than the industry average [5] - SM Energy plans to expand its oil operations, particularly in the Permian Basin and Eagle Ford regions, which is expected to enhance its financial performance [6] - Archrock focuses on midstream natural gas compression services, generating stable fee-based revenues [7]

Core Viewpoint - Sea Limited is positioned to prosper over the next five years due to its strategic focus on competitive advantages across its three main segments: fintech, e-commerce, and gaming [2]. Fintech Segment - Sea Money, the fintech arm, has experienced rapid growth in Southeast Asia, leveraging a fast-growing loan book that provides a competitive edge over established players like PayPal [3]. E-commerce Segment - The e-commerce platform Shopee initially expanded into Europe and Latin America but has since refocused on Southeast Asia, investing in logistics to strengthen its competitive position [4]. Gaming Segment - Garena's gaming segment is poised for recovery as digital gaming rebounds post-pandemic, with the Free Fire game achieving 100 million daily active users, reflecting a 25% year-over-year increase [5]. Financial Performance - Sea Limited's overall revenue for the first nine months of 2024 rose by 26% to nearly $12 billion, a significant improvement from the previous year's single-digit growth, despite Garena's revenue still being down in Q3 2024 [6]. Valuation - The company has a forward price-to-earnings ratio of 34, suggesting that current investors may benefit from the stock's valuation if the company maintains its growth trajectory over the next five years [7].