Sea(SE) ZACKS·2025-01-08 20:16Stock Performance - Sea Limited's shares have gained 44.7% over the trailing six months, significantly outperforming the Zacks Computer & Technology sector's return of 4.9% and the Zacks Internet Software industry's appreciation of 14.8% [1] - SE shares have also outperformed industry peers, including HubSpot (25.1%), Workday (11.9%), and nCino (7.8%) over the same period [1] Core Business Segments - Sea Limited's strong performance is driven by consistent top-line growth, supported by its core segments: e-commerce (Shopee), digital financial services (SeaMoney), and digital entertainment (Garena) [2] - These segments are pivotal to the company's success, each addressing critical market needs [3] E-commerce (Shopee) - Shopee dominates the e-commerce space with rapid gross merchandise value growth and operational efficiency, solidifying its position as a leader in Southeast Asia's e-commerce market [4] - Shopee increased its monetization by optimizing market dynamics in Southeast Asia, resulting in higher commission rates and improved profitability [5] - In the third quarter, Shopee's loan book grew 70% year over year, with 4 million first-time borrowers added and active loan users reaching 24 million, up 60% [6] - SPX Express enhances e-commerce by providing fast delivery and cost efficiency, with 50% of orders in Asia delivered within two days [7] Digital Entertainment (Garena) - The digital entertainment segment demonstrated significant growth potential, with total bookings increasing more than 24% in the third quarter of 2024 [8] - Free Fire, one of the world's leading mobile games, consistently attracts more than 100 million daily active users and recently partnered with Thailand's Zoological Park Organization [9] Collaborations & Product Launches - Shopee's content efforts received a boost from a new collaboration with YouTube in Indonesia, allowing creators to embed clickable buttons in their videos for direct purchases, with plans to expand to more markets [10] - Shopee collaborated with Malaysia's Ministry of Health to launch the "Pek Kasih Mama" initiative, aiming to uplift local communities by enhancing online sales capabilities for entrepreneurs [11] - Garena recently launched Need for Speed Mobile in Taiwan, Hong Kong, and Macau, becoming the top racing mobile game in terms of downloads in all locations [11] - Garena is enhancing its partnership with Tencent to bring Delta Force, a first-person tactical shooter, to PC and mobile users across Southeast Asia, MENA, and Latin America [12] Financial Estimates - The Zacks Consensus Estimate for first-quarter 2025 revenues is pegged at 19.62 billion, implying growth of 17.64% from the 2024 actual [13] - The consensus mark for earnings is pegged at $4.03 per share, indicating a year-over-year upsurge of 91% [13] Earnings Performance - SE's earnings missed the Zacks Consensus Estimate in the trailing four quarters, delivering an average negative surprise of 55.54% [14]