Sea(SE) The Motley Fool·2025-01-12 10:42Company Performance - Sea Limited experienced a significant turnaround in 2024, with its stock gaining over 160% and becoming the best performer in the portfolio [3] - The company's revenue growth accelerated to 30% year-over-year in Q3 2024, compared to just under 5% in 2023 [4] - Sea Limited achieved a net profit of $153 million in Q3 2024, a substantial improvement from a $144 million loss in Q3 2023 [8] E-commerce Business - Shopee, the e-commerce platform, generated positive adjusted EBITDA for the first time ever [5] - Gross merchandise volume increased by 25% year-over-year, and the take rate improved by 160 basis points, leading to a 45% growth in e-commerce revenue [5] Digital Financial Services - Sea Money's loan portfolio grew by 70% year-over-year to $4.6 billion, with revenue increasing by 38% [6] - The company added 4 million new borrowers, and the percentage of non-performing loans declined [6] Gaming Business - Garena's daily active users exceeded 100 million, growing by 25% year-over-year, with quarterly active users reaching over 628 million [7] - The Free Fire game became the most downloaded game globally, and bookings grew by 25% year-over-year [7] - Garena remains the largest profit driver, accounting for 65% of Sea's operating income [7] Growth Potential - Sea Limited trades at less than four times trailing-12-month sales, indicating potential undervaluation compared to historical multiples [9] - The company's logistics network is improving, which could drive higher order volumes on the e-commerce platform [9] - Sea AI Lab (SAIL) is focused on developing AI technologies to enhance existing businesses and create new opportunities, particularly in e-commerce and gaming [10] - The company has a gross margin of 36% and an adjusted EBITDA margin of about 12%, with potential for significant expansion as it continues to grow [11][12]