Financial Data and Key Metrics Changes - Total GAAP revenue increased by 38% year on year to $5.3 billion in Q2 2025, driven primarily by GMV growth in e-commerce and digital financial services [30] - Total adjusted EBITDA rose to $829 million in 2025 from $448 million in 2024 [30] - Net income for Q2 2025 was $440 million, compared to $80 million in Q2 2024 [33] Business Line Data and Key Metrics Changes E-commerce (Shopee) - Shopee's gross orders grew by 29% year on year to $3.3 billion in 2025, with GMV increasing by 28% year on year to $29.8 billion [30] - Advertising revenue saw a significant increase, with the number of sellers using ad products rising by around 20% and average quarterly ad spend growing by over 40% year on year [9][30] - Adjusted EBITDA for e-commerce was $228 million in 2025, compared to an adjusted EBITDA loss of $9 million in 2024 [30] Digital Financial Services (Money) - Digital financial services revenue increased by 70% year on year to $883 million, with adjusted EBITDA up by 55% year on year to $255 million [30] - The loan book grew over 90% year on year to reach $6.9 billion, with active users for consumer and SME loan products exceeding 30 million [18][30] Digital Entertainment (Garena) - Digital entertainment bookings grew by 23% year on year to $661 million, with GAAP revenue up 28% year on year to $559 million [30] - Adjusted EBITDA for digital entertainment was $368 million, up 22% year on year [30] Market Data and Key Metrics Changes - In Brazil, Shopee's average monthly active buyers rose by over 30% year on year, significantly outpacing the industry average [14] - The logistics cost per order in Brazil was reduced by 15%, and average delivery time improved by more than two days year on year [15] Company Strategy and Development Direction - The company aims to prioritize growth while improving profitability across all three business lines, with a focus on cost efficiency and cash accumulation [6][7] - The expansion of the Shopee VIP membership program and instant delivery services is expected to enhance user engagement and retention [12][46] - The company is committed to leveraging AI technologies to improve ad tech and enhance user experience across its platforms [81][90] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in maintaining growth momentum into Q3 2025, with expectations for full-year growth to exceed initial guidance [36] - The competitive landscape in Brazil remains favorable, with the company maintaining a strong cost structure and competitive pricing despite competitor adjustments [39][55] - The digital financial services segment is seen as having significant long-term growth potential, particularly in Brazil, where the penetration of BNPL is still in early stages [68] Other Important Information - The company has achieved EBITDA positivity across all three business lines since the second half of the previous year [6] - The Shopee platform has become a market leader in Brazil, promoting digital entrepreneurship among local sellers [16] Q&A Session Summary Question: Will the strong GMV performance lead to a full-year guidance raise? - Management indicated that Q3 growth is expected to be similar to the first half, suggesting an upward revision of full-year guidance is likely [36] Question: What is the current competitive landscape in Brazil? - Management noted that despite competitor adjustments, Shopee's growth in Brazil has remained strong, with a focus on cost structure and pricing competitiveness [39] Question: What is the potential for the Shopee VIP membership program? - Management sees good potential for the VIP program, especially in Indonesia, and does not anticipate significant long-term cost impacts [45] Question: How is the company leveraging AI in its operations? - AI is being used to improve ad tech, enhance user recommendations, and streamline customer service, with ongoing exploration of new business opportunities [81][90] Question: How is the gaming business performing outside of Free Fire? - Other games are still in early stages, but there is optimism about their potential as the company continues to refine these products [88]

Financial Data and Key Metrics Changes - Total GAAP revenue increased by 38% year on year to $5.3 billion in 2025, driven primarily by GMV growth in e-commerce and digital financial services [31] - Total adjusted EBITDA rose to $829 million in 2025 from $448 million in 2024 [31] - Net income for 2025 was $440 million, compared to $80 million in 2024 [34] Business Line Data and Key Metrics Changes E-commerce (Shopee) - Shopee's gross orders grew by 29% year on year to $3.3 billion in 2025, with GMV increasing by 28% year on year to $29.8 billion [31] - GAAP Marketplace revenue was $3.3 billion, up 34% year on year, while core marketplace revenue increased by 46% year on year to $2.6 billion [32] - Adjusted EBITDA for e-commerce was $228 million in 2025, compared to an adjusted EBITDA loss of $9 million in 2024 [31] Digital Financial Services (Money) - Digital Financial Services GAAP revenue increased by 70% year on year to $883 million, with adjusted EBITDA up by 55% year on year to $255 million [31] - The loan book grew over 90% year on year to reach $6.9 billion, with a stable 90-day NPL ratio of 1% [18][31] Digital Entertainment (Garena) - Digital entertainment bookings grew by 23% year on year to $661 million, with GAAP revenue up 28% year on year to $559 million [31] - Adjusted EBITDA for digital entertainment was $368 million, up 22% year on year [31] Market Data and Key Metrics Changes - In Brazil, Shopee's average monthly active buyers rose by over 30% year on year in Q2, significantly outpacing the industry average [14] - The logistics cost per order in Brazil was reduced by 15%, and average delivery time improved by more than two days year on year [15] Company Strategy and Development Direction - The company aims to prioritize growth while improving profitability across all three business lines, with a focus on cost efficiency and cash accumulation [5][6] - The strategy includes expanding the Shopee VIP membership program and enhancing logistics capabilities to improve service quality and customer loyalty [12][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in maintaining growth momentum into Q3, with expectations for full-year growth to exceed initial guidance [38] - The competitive landscape in Brazil remains favorable, with the company maintaining a strong cost structure and price competitiveness despite competitor adjustments [39][41] Other Important Information - The company has successfully integrated AI technologies to enhance advertising revenue and improve operational efficiencies across its platforms [7][84] - The Shopee VIP membership program has shown strong traction, with significant growth in GMV from VIP members in Indonesia [12] Q&A Session Summary Question: Will the strong GMV performance lead to a raised full-year guidance? - Management indicated that Q3 growth is expected to be similar to the first half, suggesting an upward revision of full-year guidance [38] Question: What is the competitive landscape in Brazil? - Management noted that despite competitor adjustments, Shopee's growth in Brazil has remained strong, with a focus on cost structure and logistics efficiency [39][41] Question: What is the potential for the Shopee VIP membership program? - Management sees good potential for the VIP program, especially with user retention and increased spending [46] Question: How will instant delivery impact costs and margins? - Management believes instant delivery will enhance offerings without significantly impacting EBITDA margins, as higher-end users are more willing to pay for faster services [47] Question: What is the outlook for digital financial services in Brazil? - Management is optimistic about growth in Brazil, with significant room for expansion in BNPL penetration and personal loans [68] Question: How is AI being utilized in the gaming business? - AI is being leveraged to enhance game development and user engagement, with a focus on improving productivity and creating more immersive experiences [90][94]

Group 1 - Bank of America Securities analyst Mihir Bhatia reiterated the Underperform rating on SoFi Technologies, Inc. with a price forecast of $13 [1] - SoFi has approximately 11 million members and over 15 million products, showcasing its expanding reach [1] - The Financial Services products—Money, Relay, and Invest—are broad-entry tools that attract users to SoFi's platform [1] Group 2 - SoFi leverages its Financial Services Productivity Loop to cross-sell offerings, particularly in the Lending segment [2] - The Loan Platform has been identified as a major growth driver, with SoFi originating loans in a capital-light manner [2] Group 3 - In the first quarter FY25, SoFi originated $1.6 billion in third-party loans, with an 84% year-over-year growth, indicating strong momentum [3] - Continued growth is expected, especially if credit standards ease [3] Group 4 - SoFi sees its Invest product as a major driver of Financial Services growth in 2025, potentially becoming a standout offering [4] - The company has added features like a robo-advisor and funds, focusing on monetization and asset expansion [4] Group 5 - These efforts are expected to support both revenue and contribution profit growth in 2025 and beyond [5] - SOFI shares are trading higher by 2.01% to $13.98 [5]

Financial Performance Overview - Sea's total revenue for Q1 FY25 was $4,841 million, showing a slight decrease of 1.1% compared to the previous quarter, but a year-over-year increase of 31% [1] - Digital entertainment revenue decreased by 7% quarter-over-quarter, but showed a year-over-year increase of 17% [1] - E-commerce revenue decreased by 3% quarter-over-quarter, with a year-over-year growth of 33% [1] - Digital financial services (DFS) revenue increased by 6.6% quarter-over-quarter, with a year-over-year growth of 48% [1] - Gross profits for Q1 FY25 were $2,236 million, reflecting a year-over-year increase of 37% [1] - Operating profits reached $456 million, a significant increase of 76% compared to the previous quarter [1] Digital Financial Services - The digital financial services brand was rebranded from SeaMoney to "Money," becoming a leading unsecured consumer credit service in Southeast Asia and expanding into Brazil [2] - Over 4 million new borrowers were added in Q1, with active users exceeding 28 million, a year-over-year increase of over 50% [2] E-commerce Performance - Advertising revenue in the e-commerce segment grew by over 50% year-over-year, with average monthly active buyers increasing by over 15% [3] - The company launched instant delivery services in key cities in Indonesia and introduced a paid membership program that attracted over 1 million subscribers by the end of March [3] - Sea aims for a 20% growth in GMV for the year, driven by the potential in the Brazilian market [3] Digital Entertainment Strategy - The collaboration between "Free Fire" and "Naruto" launched in January 2025, marking the largest anime IP collaboration to date, which successfully attracted new users and re-engaged lapsed players [4][5] - The game "Free Fire" achieved daily active users close to peak levels seen during the pandemic [5] - The company is expanding its game portfolio, with the release of "Delta Force Mobile" in April 2025, which has already garnered over 10 million downloads [5]

Financial Data and Key Metrics Changes - Total GAAP revenue increased by 30% year on year to $4.8 billion in Q1 2025, driven primarily by GMV growth in e-commerce and digital financial services [31] - Total adjusted EBITDA was $947 million, compared to $401 million in the same period last year [31] - Net income was $411 million in Q1 2025, compared to a net loss of $23 million in Q1 2024 [33] Business Line Performance Changes E-commerce (Shopee) - Gross orders grew by 20% year on year to $3.1 billion, while GMV increased by 22% year on year to $28.6 billion in Q1 2025 [31] - Ad revenue grew by more than 50% year on year in Q1 2025 [9] - Adjusted EBITDA for e-commerce was $264 million in Q1 2025, compared to an adjusted EBITDA loss of $22 million in Q1 2024 [31] Digital Financial Services (Money) - Revenue grew by 58% year on year to $787 million, with adjusted EBITDA up by 62% year on year to $241 million [31] - Loan book grew by over 75% year on year to reach $5.8 billion, driven by the expansion of the user base [16] - Active users for consumer and SME loan products exceeded 28 million, representing more than 50% growth year on year [17] Digital Entertainment (Garena) - Total bookings grew by 51% year on year, with adjusted EBITDA growing by 57% [24] - Free Fire's average daily active users in Q1 were close to peak levels during the pandemic [26] Market Data and Key Metrics Changes - Shopee maintained market leadership with improved profitability across Asia and Brazil [8] - In Brazil, the loan book surpassed $1 billion, driven by higher penetration of S Pay Later on Shopee [18] - The overall portfolio quality for Money remained healthy, with a 90-day NPL ratio of 1.1% [17] Company Strategy and Development Direction - The company rebranded its digital financial services business from SEA Money to Money, aiming to create a seamless connection with Shopee [6] - The focus remains on enhancing price competitiveness, improving service quality, and strengthening the content ecosystem [9] - The company is committed to capturing long-term opportunities in underserved markets, particularly in Brazil [15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving full-year guidance, citing strong growth and improving profitability across all businesses [5] - The macroeconomic environment has not materially impacted Shopee's growth, as the company operates primarily as a local marketplace [40] - Management emphasized the importance of risk management and maintaining asset quality in the financial services segment [22] Other Important Information - The company celebrated its 16th anniversary and highlighted the importance of technology in enabling financial inclusion [5][6] - The Shopee VIP membership program has seen encouraging adoption, with members purchasing more frequently and spending significantly more than regular buyers [12] Q&A Session Summary Question: What drives the improvement in Shopee's profitability and outlook for GMV growth? - Management attributed the growth to seasonality, improved take rates, and cost optimization, while maintaining confidence in the 20% GMV growth outlook despite macro uncertainties [36][39] Question: Can you elaborate on the strong performance of Money? - Growth was driven by higher penetration of S Pay Later on Shopee and strong performance in non-Shopee products, with a focus on prudent risk management [44] Question: What is the outlook for gaming bookings and potential volatility? - Management acknowledged strong Q1 performance but cautioned about potential quarterly volatility due to seasonality and specific collaborations [52] Question: How does the competitive landscape in Brazil affect margin expansion? - The competitive landscape remains stable, with margin improvements driven by better cost structure and operations, while monitoring the impact of new entrants like TikTok Shop [70] Question: What are the differences in asset quality management between Brazil and ASEAN markets? - Brazil presents a higher interest rate environment, requiring different risk assessment approaches, but the company has integrated more data to manage risks effectively [75]