Core Insights - Sea Limited has shown significant growth, with shares increasing by 20.5% following strong revenue results despite missing earnings expectations [1][2] - The company reported a 38.2% increase in revenue to $5.3 billion in Q2, while earnings per share were $0.65, missing estimates by $0.04 [2][4] Revenue Growth by Segment - E-commerce revenue grew by 33.7%, driven by a 28.2% increase in gross market value (GMV), with segment EBITDA turning from a loss of $9.2 million to a profit of $227.7 million [3] - Digital financial services saw a remarkable 70% revenue growth, with adjusted EBITDA rising 55% to $255.5 million [3] - Digital entertainment, including mobile games, experienced a 23.2% increase in bookings year-over-year, with adjusted EBITDA up 21.6% to $368.2 million [3] Profitability and Milestones - The overall growth resulted in a 364% increase in earnings per share, indicating a significant improvement in profitability from a near-breakeven level a year ago [4] - Sea celebrated the eighth anniversary of its game Free Fire, which continues to show double-digit growth in bookings [6] - The company marked its fifth anniversary in Brazil, claiming to be the e-commerce leader in the country by order volume [7] Expansion and Adoption - Sea's digital finance segment is gaining traction outside the Shopee platform, with a 40% quarter-over-quarter growth in off-Shopee SPayLater loans, now comprising over 20% of the portfolio in Malaysia [8] - The company anticipates 30% bookings growth in the digital entertainment sector for the year, reflecting a recovery from the pandemic's impact [6] Valuation Perspective - Sea is trading at 46 times this year's earnings estimates and 31 times 2026's estimates, which is considered reasonable given its strong growth across multiple high-growth businesses [9]

August 2025 Second Quarter 2025 Results Second Quarter 2025 Results Overview 2 Sea 2Q 2025 Results | Strong & Healthy Growth Across All Businesses US$ Billions E-commerce GAAP Revenue US$ Billions Digital Financial Services Loans Principal Outstanding1 536.8 775.4 661.3 2Q 2024 1Q 2025 2Q 2025 US$ Millions Digital Entertainment Bookings2 3.5 5.8 6.9 2Q 2024 1Q 2025 2Q 2025 YoY: +33.7% QoQ: +7.0% YoY: +94.0% QoQ: +18.5% YoY: +23.2% QoQ: -14.7% 2.8 3.5 3.8 2Q 2024 1Q 2025 2Q 2025 Disclaimer This presentation ...

Core Insights - Sea Limited is diversifying beyond its core businesses of Shopee and Garena, with its fintech arm Monee emerging as a significant growth driver [1][2][16] - Monee has evolved from a digital wallet into a comprehensive financial services ecosystem, offering mobile wallets, consumer lending, payment processing, and insurance [4][5] Financial Performance - In Q1 2025, Sea's digital financial services segment generated $787 million in revenue, a 58% year-over-year increase, with adjusted EBITDA of $241 million, marking four consecutive quarters of profitability [6] - Loans outstanding surged 77% year-over-year to $5.8 billion, with over 4 million first-time borrowers added in the same quarter, bringing total active loan users to over 28 million [11] Market Opportunity - Southeast Asia presents a significant opportunity for fintech, with over 70% of adults being underbanked or unbanked, creating a favorable environment for tech companies like Sea [13] - The company is actively pursuing banking and digital lending licenses across the region, establishing digital banking arms in Indonesia, the Philippines, and Singapore [10] Risk Management - Monee's non-performing loan (NPL) ratio improved from 1.4% to 1.1% year-over-year, indicating effective risk management alongside growth in its loan portfolio [12] Strategic Advantages - Monee's integration with Shopee enhances customer acquisition, while its expanding suite of financial products increases the lifetime value per user [15] - The growing smartphone and internet penetration, along with supportive government initiatives for digital financial inclusion, further bolster Monee's growth prospects [14]

Core Viewpoint - Sea's Shopee has shown strong growth in Q1 FY25, driven by seasonal factors, improved monetization rates, and cost optimization strategies [1][3] Group 1: Growth Drivers - Seasonal factors contributed to growth, as Ramadan fully fell in Q1 for the first time [1][3] - The company improved its monetization rate, with advertising monetization increasing by 50 basis points compared to last year [1][3] - Cost optimization efforts led to a significant reduction in transportation costs, along with improved sales, marketing, and operational expenses through AI solutions [1][3] Group 2: Market Position and Resilience - The macro environment has not significantly impacted Shopee's growth, as it operates primarily as a local market platform with minimal cross-border trade influence [2][4] - Shopee's price leadership in markets with low e-commerce penetration helps attract users seeking lower-priced products, enhancing market penetration [2][4] - The demand-driven nature of Shopee's market means it is less affected by discretionary spending fluctuations, with foreign exchange rates being the only potential risk factor [2][4] Group 3: Financial Performance and Projections - The company maintains a GMV growth guidance of 20% for the full year, with a long-term EBITDA target of 2% to 3% of GMV [1][3] - Short-term strategies focus on growth without excessively squeezing the ecosystem, ensuring both EBITDA improvement and sustained growth [1][3] Group 4: Regional Insights - In Brazil, Shopee's growth is supported by pricing advantages and significant infrastructure improvements, including reduced delivery times [7] - The company has successfully launched a VIP membership service, enhancing purchase frequency and user retention, which does not conflict with VAS revenue growth [7] Group 5: Financial Technology and Market Potential - Monee's strong performance is attributed to increased penetration of Shopee financial products and growth in non-Shopee business segments [5][6] - The Brazilian market shows significant growth potential for financial technology, with the company integrating more data to enhance service offerings [9]

Financial Performance - The company's GAAP revenue reached $48411 million in Q1 2025[19] - Gross profit was $22 billion in Q1 2025[13] - Operating income amounted to $4564 million in Q1 2025[19] - Adjusted EBITDA reached $9465 million in Q1 2025[16] E-commerce (Shopee) - E-commerce GAAP revenue was $35 billion in Q1 2025[19] - E-commerce adjusted EBITDA was $2644 million in Q1 2025[19] - Content-driven orders accounted for approximately 20% of physical goods order volume in Q1 2025[26] Digital Financial Services - Loans principal outstanding grew over 75% year-over-year in Q1 2025[45] - Digital Financial Services GAAP revenue was $7871 million in Q1 2025[19] - Digital Financial Services adjusted EBITDA was $2414 million in Q1 2025[19] - NPL90+ ratio was relatively stable at 11% in Q1 2025[45] Digital Entertainment (Garena) - Digital Entertainment bookings reached $775 million in Q1 2025, a 51% year-over-year increase[9, 59] - Digital Entertainment adjusted EBITDA was $4582 million in Q1 2025[19]