Sea(US:SE) ZACKSยท2025-05-14 15:30Core Insights - Sea Limited (SE) reported adjusted earnings of 86 cents per share in Q1 2025, missing the Zacks Consensus Estimate by 7.53% and down from 21 cents per share in the same quarter last year [1] - Revenues reached $4.8 billion, a year-over-year increase of 29.6%, driven by growth in e-commerce and digital financial services [1] Financial Performance - Digital Entertainment (Garena) revenues were $495.6 million, up 8.2% year-over-year, with quarterly active users at 661.8 million, an increase of 11.3% [3][4] - E-commerce (Shopee) service revenues totaled $3.1 billion, reflecting a 28.7% year-over-year growth, with gross orders reaching 3.1 billion, a 20.5% increase [5][6] - Digital Financial Services revenues increased 57.6% year-over-year to $787.1 million, supported by a loan book growth of 76.5% to $5.8 billion [6][7] Profitability Metrics - Gross profit rose 43.9% year-over-year to $2.24 billion, with adjusted EBITDA more than doubling to $946.5 million from $401.1 million in the prior year [8][9] - Digital Entertainment's adjusted EBITDA increased 56.8% to $458.2 million, while E-commerce adjusted EBITDA reached $264.4 million, a turnaround from a loss of $21.7 million [9] Balance Sheet and Cash Flow - As of March 31, 2025, SE had cash and cash equivalents of $2.18 billion, down from $2.41 billion at the end of 2024 [10] - The company generated $756.9 million in cash from operating activities in the reported quarter, compared to $1.02 million in the previous quarter [10]