Sea Limited Reports Financial Results for Q3 2024
Sea Limited (NYSE:SE) has released its financial results for the third quarter ended September 30, 2024. The company experienced significant growth, showcasing its strong position across its business segments.
Key Financial Metrics
| Metric | Q3 2024 | Q3 2023 | YoY Change | Consensus Estimate |
|---|---|---|---|---|
| Total Revenue | $4.3 billion | $3.3 billion | +30.8% | $4.08 billion |
| Net Income | $153.3 million | $(144.0) million | NA | NA |
| Basic EPS | $0.26 | $(0.26) | NA | $0.26 |
| Adjusted EBITDA | $521.3 million | $35.3 million | NA | NA |
Sea Limited reported a strong increase in total revenue, exceeding consensus estimates with a rise to $4.3 billion, representing a 30.8% year-over-year growth. The company also turned a net loss from the previous year into a net income of $153.3 million. Basic earnings per share aligned with market expectations at $0.26. The adjusted EBITDA improved substantially from $35.3 million to $521.3 million, indicating robust operational efficiency.
Revenue Performance by Segment
| Segment | Q3 2024 Revenue | YoY Change | Comments |
|---|---|---|---|
| E-commerce | $3.2 billion | +42.6% | Robust growth in orders and GMV |
| Digital Financial Services | $615.7 million | +38.0% | Solid performance in loan book |
| Digital Entertainment | $497.8 million | -15.9% | Deferred revenue due to user engagement |
The e-commerce segment drove revenue growth, marked by a 42.6% increase, due to strong performance in both core marketplace and value-added services. Digital Financial Services recorded a 38% rise, supported by a significant expansion in its loan portfolio. Despite a decline in Digital Entertainment GAAP revenue, the segment saw increased bookings, attributed to longer user engagement.
Key Developments and Operational Highlights
- Shopee's GMV growth on track for mid-twenties year-on-year.
- SeaMoney's loan book expanded over 70% year-on-year with a stable non-performing loan ratio.
- Garena expects over 30% year-on-year increase in Free Fire's bookings.
- Shopee achieved positive adjusted EBITDA in Asia and Brazil.
Comments from Company Officers
Forrest Li, Chairman and CEO, highlighted the company's high growth across all three core businesses, emphasizing Shopee's profitability and positive adjusted EBITDA. He confirmed Shopee's profitability going forward while expressing satisfaction with improving profitability and growth return.
Forward Guidance
The company provided strong forward-looking insights, anticipating sustained growth in GMV for Shopee and continued expansion within SeaMoney and Garena segments.
Stock Price Movement
Post earnings release, Sea Limited's stock experienced a rise of approximately 4.17%.
Sea Limited's financial results showcase the company's ability to leverage its diverse portfolio, delivering solid growth across various sectors while exceeding market expectations in revenue generation.
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