Sea(US:SE)2025-11-11 13:32Financial Data and Key Metrics Changes - Total revenue for the third quarter of 2025 reached $6 billion, representing a 38% year-on-year growth, while adjusted EBITDA was $874 million, up 68% year-on-year [4][33] - The loan book for Money expanded by 70% year-on-year, reaching $7.9 billion, with a stable 90-day non-performing loan (NPL) ratio of 1.1% [21][36] - Digital Entertainment bookings grew by 51% year-on-year to $841 million, with adjusted EBITDA increasing by 48% [27][36] Business Line Performance Changes - Shopee's gross merchandise value (GMV) grew by over 28% year-on-year, with gross orders increasing to $3.6 billion [4][33] - E-commerce adjusted EBITDA was $186 million, significantly up from $34 million in the same quarter last year [34] - Digital financial services revenue grew by 61% year-on-year to $990 million, with adjusted EBITDA rising by 37% [35] Market Data and Key Metrics Changes - In Taiwan, GMV showed double-digit growth year-on-year, with a significant increase in the number of sellers using ad products [11][18] - In Brazil, GMV growth outpaced the market, with improvements in delivery speed and reliability contributing to higher spending patterns among new buyer cohorts [19][20] Company Strategy and Development Direction - The company aims to enhance logistics and fulfillment capabilities as core pillars of its strategy to strengthen its competitive position [12][14] - Continued investment in AI is expected to improve consumer retail experiences and drive engagement [16][17] - The Shopee VIP membership program has gained traction, with membership increasing by over 75% in the last quarter [15][70] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in maintaining profitable growth across all business lines, with a focus on long-term profitability [4][5] - The competitive landscape remains stable, with no significant changes observed in market dynamics [51][53] - The company anticipates a GMV growth of more than 25% for the full year 2025, reflecting strong market momentum [40][41] Other Important Information - The company is focusing on enhancing its logistics capabilities to improve service quality and operational efficiency [8][12] - The partnership with YouTube and Meta aims to enrich the buyer community and enhance content-driven sales [16][17] Q&A Session Summary Question: Growth guidance for 2025 and margin trends - Management indicated that the growth guidance of more than 25% is based on current market momentum and competitive landscape, expecting to maintain a 2%-3% EBITDA margin [40][41] Question: Investment areas affecting margins - The decrease in margins is attributed to ongoing investments in logistics and fulfillment capabilities, which are expected to yield long-term benefits [40][41] Question: New market entry strategy and market shares - The rationale for closing cross-border operations in some regions is to focus resources on key business priorities, with a selective approach to new market entries [45][46] Question: Competitive landscape in Southeast Asia - The competitive landscape is stable, with no significant changes in market dynamics, and the company is confident in its ability to defend market share [51][53] Question: Logistics fulfillment and cost outlook - More than half of orders are fulfilled by SPX, with continuous improvements in cost per order and delivery speed contributing to growth [58][59] Question: Outlook for Garena and Free Fire - Management remains optimistic about Garena's growth, with plans for new IP collaborations and game launches in the pipeline [62][63] Question: VIP membership unit economics - The VIP program is in early stages, with strong growth in membership and a focus on improving retention rates [69][72] Question: AI investment and applications - The company is focused on practical applications of AI to enhance user experience and operational efficiency, rather than large-scale CapEx investments [73][76]