Sea Limited (SE) Q2 Earnings Miss Estimates, Revenues Up Y/Y

Core Insights - Sea Limited reported earnings of 46 cents per share in Q2 2024, missing the Zacks Consensus Estimate by 22.03%, and down from 83 cents in the same quarter last year [1] - Revenues reached $3.91 billion, a 29.9% year-over-year increase, surpassing the Zacks Consensus Estimate by 4.73% [1] Top-Line Details - Digital entertainment revenues were $435.6 million, a decrease of 17.7% year-over-year [2] - Garena saw a 20% year-over-year increase in bookings, with Free Fire maintaining over 100 million Daily Active Users [2] - Quarterly active users reached 648 million, up 19% year-over-year [2] User Metrics - Paying users increased to 52.5 million, a 21.7% year-over-year growth, with a paying user ratio of 8.1% compared to 7.9% last year [3] - Average bookings per user were 83 cents, up from 81 cents in the previous year [3] - Total bookings for Q2 2024 were $536.8 million, a 21.1% increase year-over-year [3] E-commerce Performance - E-commerce and other services revenues totaled $3 billion, reflecting a 30.4% year-over-year increase [3] - Shopee's gross orders rose by 40% and GMV grew by 29% [4] - Sales of goods increased by 40.5% year-over-year to $342.5 million [4] Digital Financial Services - Digital financial services revenues increased by 21.4% year-over-year to $519.3 million [4] - The loan book reached $3.5 billion, up nearly 40% year-over-year, with active users for consumer and SME loans growing by almost 60% [5] Operating Details - Gross profit increased by 9.2% year-over-year to $1.58 billion [6] - Adjusted EBITDA was $448.5 million, down from $510 million in the previous year [6] - Digital Entertainment's adjusted EBITDA rose by 26.5% year-over-year to $302.8 million [6] - E-commerce adjusted EBITDA declined by $9.2 million compared to a profit of $150.3 million in the year-ago quarter [6] - Digital Financial Services adjusted EBITDA was $165 million, a 20.2% year-over-year increase [7] Balance Sheet - As of June 30, 2024, Sea Limited had cash and cash equivalents of $2.64 billion, up from $2.46 billion as of March 31, 2024 [7] Stock Performance - Sea Limited's shares have surged 83.8% year-to-date, outperforming the Zacks Computer & Technology sector's rise of 15.2% [8]