Sea Limited's E-Commerce Business Is Firing on All Cylinders

Core Insights - Shopee achieved its first profitable year in 2024, reporting adjusted EBITDA of $156 million, marking a significant shift from previous loss-making years [3][15] - The company experienced a 33% growth in orders, a 28% increase in gross merchandise value, and a 38% surge in revenue, indicating a transition to a more balanced and sustainable growth model [3][4] - Shopee maintains a 48% market share in its operating region, confirming its leadership position in all seven Asian markets and a growing presence in Brazil [8][9] Performance and Strategy - Shopee's pivot from aggressive growth to a more sustainable model involved cost-cutting, exiting certain markets, and raising take rates, which initially impacted market share but has since led to profitability [4][5] - The company is focused on enhancing price competitiveness, improving service quality, and strengthening its content ecosystem to sustain growth momentum into 2025 [11] - Shopee Express, the company's in-house logistics, delivers around 50% of orders within two days, contributing to improved service and reduced logistics costs [12] Future Outlook - The live-streaming segment contributes approximately 15% to Shopee's overall order volume for physical goods, with potential for further growth through partnerships, such as with YouTube [13] - Shopee anticipates a gross merchandise value growth of around 20% in 2025, supported by ongoing improvements in customer experience and retention strategies [13]