Sea(SE) - 2024 Q2 - Quarterly Results

Revenue Growth - Total GAAP revenue increased by 23.0% year-on-year to $3.8 billion in Q2 2024[2] - E-commerce GMV grew by 29.1$23.3 billion in Q2 2024[3] - Digital Entertainment bookings increased by 21.1% year-on-year to $536.8 million in Q2 2024[5] - Digital Financial Services revenue rose by 21.4$519.3 million in Q2 2024[4] - E-commerce gross orders increased by 40.3% year-on-year to 2.5 billion in Q2 2024[3] - Total revenue for the six months ended June 30, 2024, was $7.54 billion, up from$6.14 billion in the same period of 2023[36] - E-commerce revenue grew from $2,110,551 thousand in Q2 2023 to$2,821,269 thousand in Q2 2024, while digital financial services revenue increased from $427,940 thousand to$519,338 thousand[45][46] Profitability and Margins - Digital Entertainment adjusted EBITDA margin improved to 56.4% in Q2 2024 from 54.0% in Q2 2023[5] - E-commerce adjusted EBITDA turned negative at $(9.2) million in Q2 2024 compared to$150.3 million in Q2 2023[3] - Net income for Q2 2024 was $79.9 million, a significant decrease from$331.0 million in Q2 2023[22] - Basic earnings per share for Q2 2024 was $0.14, down from$0.57 in Q2 2023[24] - Diluted earnings per share for Q2 2024 was $0.14, compared to$0.54 in Q2 2023[24] - Gross profit for the six months ended June 30, 2024, was $3.14 billion, compared to$2.87 billion in 2023[36] - Operating income for the six months ended June 30, 2024, was $153.99 million, down from$409.04 million in 2023[36] - Net income attributable to Sea Limited's ordinary shareholders for the six months ended June 30, 2024, was $58.20 million, compared to$409.68 million in 2023[36] - Adjusted EBITDA for the e-commerce segment in Q2 2024 was $150.34 million, up from$(9.18) million in Q2 2023[33][34] - Adjusted EBITDA for the digital financial services segment in Q2 2024 was $136.96 million, down from$164.68 million in Q2 2023[33][34] - Adjusted EBITDA for the digital entertainment segment in Q2 2024 was $239.46 million, down from$302.80 million in Q2 2023[33][34] - Operating income for digital financial services improved from $120,966 thousand in Q2 2023 to$151,261 thousand in Q2 2024[45][46] User Engagement and Growth - Free Fire achieved over 100 million daily active players every day in Q2 2024[1] - Consumer and SME loans principal outstanding grew by 39.5% year-on-year to $3.5 billion as of June 30, 2024[4] Financial Position and Cash Flow - Total cash and investments increased by$364.7 million to $9.0 billion as of June 30, 2024[2] - Total assets increased from$18,883,232 thousand as of December 31, 2023, to $19,570,020 thousand as of June 30, 2024, reflecting growth in current and non-current assets[38] - Cash and cash equivalents decreased from$2,811,056 thousand to $2,646,488 thousand, while short-term investments increased from$2,547,644 thousand to $3,387,461 thousand[38] - Loans receivable (net) increased from$2,464,662 thousand to $2,809,987 thousand, indicating growth in the credit business[38] - Net cash used in investing activities amounted to$1,563,708 thousand, primarily due to an increase in loans receivable of $873,000 thousand and net placement of$575,000 thousand in securities[43] - Net cash generated from financing activities was $426,438 thousand, driven by an increase in bank deposits of$674,000 thousand, offset by repurchase of convertible notes of $176,000 thousand[43] - Total liabilities increased from$12,185,647 thousand to $12,603,743 thousand, with current liabilities rising from$8,168,941 thousand to $8,617,171 thousand[39] - Shareholders' equity increased from$6,697,585 thousand to $6,966,277 thousand, driven by growth in additional paid-in capital from$15,283,870 thousand to $15,640,134 thousand[41] Segment Performance - Digital entertainment revenue decreased from$529,397 thousand in Q2 2023 to $435,559 thousand in Q2 2024[45][46]