Key Takeaways Sea Limited posted 38.3% revenue growth in Q3 but missed earnings expectations.Shopee, Monee and Garena each delivered strong year-over-year gains across key metrics.Competitive pressure in Southeast Asia and Latin America adds challenges to SE's outlook.Sea Limited’s (SE) latest results highlight why investors should hold the stock despite its third-quarter earnings miss. The company delivered strong top-line expansion, with revenues rising 38.3% year over year, driven by sustained Gross Merc ...

BREAKING: Stocks Open Lower, Alphabet Rallies On Berkshire Stake Sea Ltd. (SE) said Monday that the Southeast Asia e-commerce leader is prepared to purchase up to $1 billion of its American shares. Sea stock gained jumped in early trading, helping regain some ground after a recent slide. Sea said in a news release that its board had authorized the buyback plan, which represents " the company's confidence in its long-term prospects and allows (Sea) to opportunistically repurchase its shares." Sea stock rose ...

Nov 17, 2025 3:00 AM Eastern Standard Time Sea Limited Announces Share Repurchase Program Share The program demonstrates the Company's confidence in its long-term prospects and allows the Company to opportunistically repurchase its shares. SINGAPORE--(BUSINESS WIRE)--Sea Limited (NYSE: SE) ("Sea†or the "Company†) today announced that its board of directors has authorized a share repurchase program under which Sea may repurchase up to US$1 billion of its American depositary shares ("ADS†), each represent ...

Core Insights - Sea's VIP membership program has shown strong early growth, with a 75% increase in quarterly membership registrations, indicating positive user engagement and retention efforts [1][8] - The company believes it can achieve high GMV penetration rates similar to other regions, despite being in the early stages of market development [1][8] - Sea's growth in Southeast Asia has exceeded previous expectations, with market share increasing faster than the overall market growth [1][4] E-commerce Business Growth - The company projects over 25% growth in e-commerce for 2025, driven by current market momentum and competitive landscape [2] - Despite an increase in commission rates, e-commerce profit margins fell to 0.6% this quarter, with investments focused on logistics and fulfillment capabilities [2] - Buyer frequency increased by 12% year-over-year, and monthly active buyers grew by 15%, reflecting the effectiveness of investments in user engagement [2] Market Expansion Strategy - Sea adopts a selective approach to new market expansions, with a focus on Argentina to leverage existing cross-border infrastructure and operational experience [3] - The decision to gradually cease cross-border operations in Chile and Colombia aims to concentrate resources on key business priorities aligned with long-term strategies [3] Competitive Landscape - The competitive landscape in Southeast Asia remains stable, with no significant changes in market dynamics or competitor behavior [5] - The company does not foresee substantial threats from competitors transitioning to shelf models, as the nature of their platforms differs [5] Logistics and Fulfillment - Over half of the orders are fulfilled through SPX, with continuous improvements in delivery costs and times contributing to growth [6] - Average delivery times in Brazil have decreased by 2 days year-over-year, enhancing service efficiency [6] Gaming Segment Outlook - Following a successful 2025, the company remains optimistic about the growth of "Free Fire" in 2026, with plans for new IP collaborations and game releases [7] AI Integration - The company is excited about AI's potential to create value but will focus on application rather than large-scale capital expenditures [10] - Key applications of AI include improving ad conversion, enhancing product discovery, and increasing customer service efficiency through AI chatbots [10]

东南亚小腾讯Sea于 11 月 11 日晚美股盘前，交付了 3 季度业绩答卷。概括来看，本季业绩属于亮点与缺陷共存。首先是增长仍然非常强劲，三大板块的 营收和业务增长都超预期的好。 但因公司开始更侧重于增长而非利润，随着毛利环比收窄，以及费用支出维持较高增长，本季各板块的利润率都在边际变差，具体来看： 1、GMV 依然强劲，但并非由量驱动：最重要Shopee 电商板块的 GMV 本季同比增速仍达 28.3%。比上季继续略有提速，也超出卖方预期的 25.4%，无 疑 任然 相当强劲。 只是略显瑕疵的是，本季超预期主要是由客单价的修复驱动，而单量增速是环比走低的（上季 32% vs. 本季 29%）。并没能明确地验证，在增加投入和物 流补贴后，电商订单量持续加速，这 个 市场期待的看多信号。 2、佣金变现走高，但物流变现下降：由于东南亚各主要平台仍在携手提高变现，本季Shopee 整体平台变现率达到了 11.9%，环比提升了幅度是 23 年以 来最高的一次。在此带动下，本季 Shopee 平台型收入的增速高达 37%，环比提速了整 3pct。 更细来看，本季是佣金性变现率环比大幅提升了 0.9pct，而以物流为主 ...

Key Takeaways Sea Limited posted Q3 adjusted EPS of $0.78, up 44% year over year but below consensus estimates.Revenues rose 38.3% to $6B, driven by growth in e-commerce and digital financial services segments.Adjusted EBITDA climbed 68% to $874M, with margins expanding 260 basis points year over year.Sea Limited (SE) reported adjusted earnings of 78 cents per share in the third quarter of 2025, which increased 44.4% from the year-ago quarter but missed the Zacks Consensus Estimate by 24.27%.Revenues of $6 ...

12 November 2025 | 2:10AM SGT Equity Research Sea Ltd. (SE) 3Q25 Earnings Review: Robust momentum & market share intact; Buy SE 12m Price Target: $218.00 Price: $155.05 Upside: 40.6% Sea printed a strong 3Q25 as Shopee sustained its robust momentum with GMV +8% qoq/+28% yoy and management raising its FY25 GMV growth guidance from 20% to 25%. Management reiterated its prior messaging for growth to remain priority into next year - while margins may fluctuate qoq (observed this quarter, as we had expected), Sh ...

Financial Data and Key Metrics Changes - Total revenue reached $6 billion, representing a 38% year-on-year growth, while adjusted EBITDA grew by 68% to $874 million [4][34] - Shopee's GMV increased by over 28% year-on-year, with gross orders rising by 28% to 3.6 billion [4][34] - Digital financial services revenue grew by 61% year-on-year to $990 million, with adjusted EBITDA up by 37% to $258 million [20][34] - Digital entertainment bookings increased by 51% year-on-year to $841 million, with adjusted EBITDA growing by 48% [26][34] Business Line Data and Key Metrics Changes - E-commerce: Shopee achieved record highs in GMV, gross order volume, and revenue, with a GAAP marketplace revenue of $3.8 billion, up 37% year-on-year [5][34] - Digital Financial Services: The loan book expanded to $7.9 billion, up 70% year-on-year, with a stable 90-day NPL ratio of 1.1% [21][36] - Digital Entertainment: Garena's bookings were up 51% year-on-year, driven by successful campaigns for Free Fire [27][34] Market Data and Key Metrics Changes - In Brazil, Shopee's GMV growth outpaced the market, with significant improvements in delivery speed and reliability [19][20] - In Taiwan, GMV showed double-digit growth year-on-year, with a strong logistics network supporting growth [11][18] Company Strategy and Development Direction - The company aims to continue delivering high and profitable growth across all three business lines, focusing on enhancing logistics capabilities and buyer engagement [4][5] - Investments in logistics and fulfillment are seen as critical for long-term competitiveness and profitability [7][12] - The company is leveraging AI to improve consumer retail experiences, enhancing product discovery and seller engagement [16][17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in maintaining growth momentum, with expectations for Shopee's full-year 2025 GMV growth to exceed 25% [20][34] - The competitive landscape is viewed as stable, with no significant changes noted in market dynamics [54] - The company is optimistic about the future, particularly in expanding its digital financial services and enhancing user engagement through programs like Shopee VIP [15][19] Other Important Information - The Shopee VIP membership program has seen a 75% increase in members, indicating strong user engagement [15][71] - The company is focused on a capital-efficient approach to logistics, primarily leasing rather than purchasing land and warehouses [14][42] Q&A Session Summary Question: Growth guidance for 2025 and margin trends - Management indicated that the growth guidance reflects current market momentum and competitive landscape, with expectations for a 2-3% EBITDA margin improvement [40][41] Question: Investment areas affecting margins - Management noted that investments in logistics and fulfillment are contributing to margin fluctuations, but overall improvements are expected [40][42] Question: New market entry strategy and Argentina - The rationale for entering Argentina is to leverage existing capabilities from Brazil, with a focus on operational synergies [46][47] Question: Market shares in ASEAN and Taiwan - Management believes they are gaining market share in South Asia and are confident in their position in Taiwan despite competition [49][50] Question: Competitive landscape in Southeast Asia - The competitive landscape is stable, with no significant changes noted, and management does not foresee a major impact from live streaming peers [52][54] Question: Logistics fulfillment percentage and cost outlook - More than half of orders are fulfilled by SPX, with continuous improvements in cost per order and delivery speed [59][60] Question: Outlook for Free Fire in 2026 - Management remains optimistic about Free Fire's growth, with plans for new IP collaborations and game launches [63][64] Question: VIP membership unit economics - The VIP program is still in early stages, with a focus on improving retention and ensuring benefits for both users and partners [71][72] Question: AI investments and applications - Management is excited about AI's potential to enhance user experience and operational efficiency, focusing on practical applications rather than large-scale infrastructure investments [74][76]

Financial Data and Key Metrics Changes - Total revenue reached $6 billion, representing a 38% year-on-year growth, while adjusted EBITDA grew by 68% to $874 million [4][33] - Shopee's GMV increased by over 28% year-on-year, with gross orders rising by 28% to $3.6 billion [4][33] - Digital financial services revenue grew by 61% year-on-year to $990 million, with adjusted EBITDA increasing by 37% to $258 million [20][34] - Digital entertainment bookings rose by 51% year-on-year to $841 million, with adjusted EBITDA up 48% to $466 million [27][37] Business Line Data and Key Metrics Changes - E-commerce: Shopee achieved record highs in GMV, gross order volume, and revenue, with a significant increase in ad revenue by over 70% [5][34] - Digital Financial Services: The loan book expanded by 70% year-on-year to $7.9 billion, with a stable 90-day NPL ratio at 1.1% [21][36] - Digital Entertainment: Garena's performance was bolstered by successful campaigns, leading to a 51% increase in bookings [27][37] Market Data and Key Metrics Changes - In Brazil, Shopee's GMV growth outpaced the market, with delivery speed improving significantly, allowing for expansion into higher-value product categories [19][20] - In Taiwan, Shopee's GMV showed double-digit growth year-on-year, with a strong logistics network enhancing delivery capabilities [10][17] Company Strategy and Development Direction - The company aims to enhance logistics and fulfillment capabilities as core pillars of its strategy, focusing on improving service quality and price competitiveness [6][11] - Continued investment in AI to enhance consumer retail experiences and improve monetization through smarter search and personalized content [15][16] - The Shopee VIP membership program has gained traction, with a 75% increase in members, indicating strong user engagement [13][14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in maintaining profitable growth across all business lines, with expectations for Shopee's full-year GMV growth to exceed 25% [20][32] - The competitive landscape remains stable, with the company gaining market share in Southeast Asia and Taiwan [53][54] - Future investments will focus on logistics and fulfillment to strengthen competitive advantages without significant capital expenditure [62][64] Other Important Information - The company is exploring opportunities in Argentina while winding down operations in Chile and Colombia to focus resources on key priorities [52] - The standalone ShopeePay app is gaining traction, with over 20% of monthly transacting users utilizing it [25] Q&A Session Summary Question: Growth guidance for 2025 and margin trends - Management indicated that the growth guidance reflects current market momentum and competitive landscape, with expectations for a 2-3% EBITDA margin improvement over time [41][42] Question: New market entry strategy and market shares - The rationale for closing cross-border operations in some regions was to focus on key business priorities, with confidence in gaining market share in ASEAN and Taiwan [46][53] Question: Competitive landscape in Southeast Asia - Management noted a stable competitive landscape, with no significant changes in market dynamics impacting growth [56][60] Question: Logistics fulfillment and Garena's outlook - More than half of orders are fulfilled by SPX, with continuous improvements in delivery speed and cost contributing to growth [67][68] - Garena remains optimistic about Free Fire's growth, with plans for new IP collaborations and game launches [71][76] Question: VIP membership unit economics and AI investments - The VIP program is in early stages, with strong growth in user sign-ups and retention rates being closely monitored [80][81] - AI investments will focus on practical applications to enhance user experience and operational efficiency, avoiding large capital expenditures [89][90]

Core Insights - Sea's Q3 revenue exceeded Wall Street expectations, driven by strong discretionary spending on its e-commerce platform Shopee [1] - The company reported Q3 revenue of $5.986 billion, a 38.3% year-over-year increase, surpassing analyst expectations of $5.65 billion [1] - Shopee's revenue grew by 35% to $4.3 billion, exceeding the previous estimate of $3.99 billion, becoming a key revenue driver [1] Financial Performance - Gross profit for Q3 was $2.599 billion, up 39.7% year-over-year [1] - Net profit reached $375 million, a significant increase of 144.6% [1] - Earnings per share for Q3 were $0.59, a 145.8% year-over-year increase, although below the consensus estimate of $0.77 [1] Market Strategy - Shopee implemented operational strategies such as large discounts, limited-time offers, and accelerated logistics to attract cautious consumers during economic fluctuations [1] - The company also utilized financial incentives like cashback, buy-now-pay-later options, and reward points to enhance customer engagement [1] - Shopee's Gross Merchandise Volume (GMV) is expected to grow over 25% this year, up from a previous forecast of 20% [1] AI Integration and Growth Potential - The CEO indicated that artificial intelligence will support Sea's next growth phase, with increased investment in AI for customer service and gaming operations [2] - The gaming segment, Garena, saw a 51% increase in bookings, marking the highest growth since 2021 [2] Stock Performance and Market Concerns - Sea's stock price has increased more than fourfold from its 2024 low due to improved profitability [2] - However, concerns over high valuation and intensified competition have led to a more than 20% decline in stock price over the past two months [2]