Sea: Q4 Revenue, EPS Surge; Outlook Up

Core Insights - Sea Limited reported a revenue of $4.95 billion and earnings per share (EPS) of$0.39, surpassing analysts' expectations of $4.65 billion and$0.30 respectively [1][3] - The company achieved a net income turnaround of $237.6 million in Q4 2024, compared to a loss of$111.6 million in the same quarter last year, marking a significant improvement [2][3] Financial Performance - Revenue increased by 37% year over year, driven by strong performances in e-commerce and digital financial services [6] - Shopee's gross merchandise value (GMV) rose to $28.6 billion, a 23.5$5 billion, reflecting a 63.9% surge from the previous year [6] - Adjusted EBITDA for the quarter was $590.9 million, a 366$126.7 million in Q4 2023 [3] Business Overview - Sea Limited operates in digital entertainment, e-commerce, and digital financial services through its brands Garena, Shopee, and SeaMoney [4] - The company focuses on integrating these services to enhance user experience and support growth across segments [4] Strategic Focus - The company aims to maintain market leadership in Southeast Asia and pursue smart geographic diversification and strategic alliances [5] - Investments in artificial intelligence (AI) and logistics are crucial for addressing competitive pressures and enhancing operational efficiencies [9] Future Outlook - Management projects a 20% GMV growth for Shopee in 2025, with continued expansion in key markets such as Asia and Brazil [10] - SeaMoney's loan book is expected to grow faster than Shopee's, indicating strong demand for financial services [10] - Garena is anticipated to sustain double-digit growth in users and bookings [10]