SE Earnings Prediction
The chart below shows how SE performed 10 days before and after its earnings report, based on data from the past quarters. Typically, SE sees a +1.14% change in stock price 10 days leading up to the earnings, and a -3.55% change 10 days following the report. On the earnings day itself, the stock moves by +0.28%. This data can give you a slight idea of what to expect for the next quarter's release.
SE Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
4.95B
36.88%
14.38%
Gross Margin
44.55%
5.67%
3.60%
Operating Margin
6.18%
496.15%
32.05%
Net Margin
4.80%
255.34%
35.59%
EPS
0.39
305.26%
62.50%
No Data Available
SE Earnings Analysis
Sea Ltd Corporation (SE.N) Earnings Conference Call
Positive
Strong Double-Digit Growth: All three business segments returned to strong double-digit growth, exceeding original guidance.
Consistent Positive EBITDA: Achieved positive adjusted EBITDA for the second consecutive year across all three business segments.
E-commerce Milestone Achievement: E-commerce GMV surpassed $100 billion for the first time in 2024, with Shopee achieving 28% year-on-year growth.
Profitability and Monetization Growth: Shopee became profitable in both Asia and Brazil, with significant improvements in monetization through higher commission and advertising take rates.
Ad Revenue Surge: Ad revenue for Shopee increased by more than 50% year-on-year in Q4 2024, with improved ad take rates.
Logistics Cost Reduction: SPX Express logistics integration led to reduced logistics costs and improved delivery times, enhancing service quality.
AI Impact on Customer Service: AI adoption improved customer service satisfaction scores and reduced costs per contact by nearly 30% year-on-year.
Live Streaming Impact: Live streaming contributed around 15% of Shopee’s overall order volume, with significant growth in unique streamers and viewers.
Digital Financial Services Growth: Digital financial services segment achieved over 30% year-on-year growth, with a loan book size surpassing $5 billion.
Digital Financial Services Profitability: The digital financial services business is profitable, contributing $2.4 billion in annual revenue and over $700 million in adjusted EBITDA.
Free Fire Bookings Growth: Free Fire saw a remarkable comeback with 34% year-on-year growth in bookings, maintaining its position as the world's largest mobile game by average DAU.
User Base Expansion: Garena's Free Fire expanded its user base significantly, particularly in emerging markets, and maintained high engagement levels.
Revenue Surge in Q4: Total GAAP revenue increased 37% year-on-year to $5 billion in Q4 2024, driven by e-commerce and digital financial services growth.
Adjusted EBITDA Increase: Adjusted EBITDA for the full year of 2024 reached $2 billion, up from $1.2 billion in 2023, indicating strong operational performance.
Negative
Earnings Miss Report: Sea Limited missed earnings expectations with a reported EPS of $0.39, significantly lower than the expected $0.76.
Profitability Challenges in Growth: Despite overall revenue growth, the company faced challenges in maintaining profitability across all segments, particularly in digital entertainment.
Nonoperating Income Decline: The net nonoperating income decreased from $32 million in Q4 2023 to $28 million in Q4 2024, indicating a decline in non-operational financial performance.
Net Income Tax Increase: The net income tax expense increased from $77 million in Q4 2023 to $89 million in Q4 2024, reflecting higher tax obligations that could impact net income.
Risk Exposure Concerns: While the digital financial services segment showed growth, the overall risk exposure remains a concern with a 90-day nonperforming loan ratio of 1.2%.
Net Loss to Income Shift: The company reported a net loss of $112 million in Q4 2023, which, although improved to a net income of $238 million in Q4 2024, highlights the volatility in financial performance year-over-year.
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SE Earning Call Sentiment
Sea Limited (NYSE:SE) Q4 2024 Earnings Call Transcript
SE.N
2.1%Positive
The earnings call reflects strong financial performance with significant revenue and profitability growth across e-commerce and digital financial services. Shopee's profitability in Asia and Brazil, along with positive EBITDA, indicates operational strength. The Q&A revealed optimism in growth prospects, though some responses lacked clarity. Overall, the earnings results, optimistic guidance, and strategic focus on logistics and digital services suggest a positive stock price movement in the short term.
