Sea Limited Reports Second Quarter 2024 Results
Sea reported strong Q2 2024 results, with total GAAP revenue up 23% year-on-year to $3.8 billion. Key highlights include:
- E-commerce (Shopee) gross orders grew 40.3% YoY to 2.5 billion, with GMV up 29.1% to $23.3 billion
- Digital Entertainment (Garena) bookings increased 21.1% YoY to $536.8 million
- Digital Financial Services revenue rose 21.4% YoY to $519.3 million
The company expects Shopee to become adjusted EBITDA positive from Q3 2024 and raised full-year GMV growth guidance to mid-20%. Free Fire achieved over 100 million daily active users throughout Q2. Total net income was $79.9 million, down from $331.0 million in Q2 2023.
Sea ha riportato risultati solidi per il secondo trimestre del 2024, con un fatturato totale GAAP in aumento del 23% rispetto all'anno precedente, pari a 3,8 miliardi di dollari. I punti salienti includono:
- Gli ordini lordi dell'e-commerce (Shopee) sono aumentati del 40,3% su base annua, raggiungendo 2,5 miliardi, con un GMV in crescita del 29,1% a 23,3 miliardi di dollari
- Le prenotazioni del Digital Entertainment (Garena) sono aumentate del 21,1% su base annua, raggiungendo 536,8 milioni di dollari
- I ricavi dei Digital Financial Services sono aumentati del 21,4% su base annua, raggiungendo 519,3 milioni di dollari
L'azienda prevede che Shopee diventi positivamente EBITDA adjusted a partire dal terzo trimestre del 2024 e ha alzato la guida per la crescita del GMV annuale al 20% circa. Free Fire ha raggiunto oltre 100 milioni di utenti attivi giornalieri durante il secondo trimestre. Il reddito netto totale è stato di 79,9 milioni di dollari, in calo rispetto ai 331,0 milioni di dollari del secondo trimestre del 2023.
Sea reportó resultados sólidos en el segundo trimestre de 2024, con ingresos totales GAAP aumentando un 23% interanual, alcanzando los 3.8 mil millones de dólares. Los aspectos más destacados incluyen:
- Los pedidos brutos de comercio electrónico (Shopee) crecieron un 40.3% interanual, alcanzando 2.5 mil millones, con GMV en aumento del 29.1%, alcanzando 23.3 mil millones de dólares
- Las reservas de entretenimiento digital (Garena) aumentaron un 21.1% interanual, alcanzando 536.8 millones de dólares
- Los ingresos de servicios financieros digitales aumentaron un 21.4% interanual, alcanzando 519.3 millones de dólares
La compañía espera que Shopee se vuelva positiva en EBITDA ajustado a partir del tercer trimestre de 2024 y ha elevado su pronóstico de crecimiento de GMV para todo el año al medio 20%. Free Fire logró más de 100 millones de usuarios activos diarios durante el segundo trimestre. El ingreso neto total fue de 79.9 millones de dólares, una disminución respecto a los 331.0 millones de dólares en el segundo trimestre de 2023.
Sea는 2024년 2분기 강력한 실적을 보고하며, 총 GAAP 수익이 전년 대비 23% 증가한 38억 달러에 달했습니다. 주요 하이라이트는 다음과 같습니다:
- 전자상거래(Shopee) 총 주문량이 전년 대비 40.3% 증가해 25억 건에 도달했으며, GMV는 29.1% 증가해 233억 달러에 달했습니다.
- 디지털 엔터테인먼트(Garena) 예약 매출은 전년 대비 21.1% 증가한 5억 3,680만 달러에 도달했습니다.
- 디지털 금융 서비스 수익은 전년 대비 21.4% 증가한 5억 1,930만 달러에 도달했습니다.
회사는 Shopee가 2024년 3분기부터 조정된 EBITDA 흑자로 전환할 것으로 예상하고 있으며, 연간 GMV 성장 전망을 중간 20%로 상향 조정했습니다. Free Fire는 2분기 동안 하루 1억 명 이상의 활성 사용자를 기록했습니다. 총 순이익은 7,990만 달러로, 2023년 2분기의 3억 3,100만 달러에서 감소했습니다.
Sea a annoncé des résultats solides pour le deuxième trimestre 2024, avec des revenus totaux GAAP en hausse de 23% par rapport à l'année précédente, atteignant 3,8 milliards de dollars. Les points forts incluent :
- Les commandes brutes de l'e-commerce (Shopee) ont augmenté de 40,3% d'une année sur l'autre, atteignant 2,5 milliards, avec un GMV en hausse de 29,1% à 23,3 milliards de dollars
- Les réservations dans le secteur du divertissement digital (Garena) ont augmenté de 21,1% d'une année sur l'autre, atteignant 536,8 millions de dollars
- Les revenus des services financiers numériques ont augmenté de 21,4% d'une année sur l'autre, atteignant 519,3 millions de dollars
La société prévoit que Shopee atteindra un EBITDA ajusté positif à partir du troisième trimestre 2024 et a relevé ses prévisions de croissance du GMV pour l'année entière à près de 20%. Free Fire a atteint plus de 100 millions d'utilisateurs actifs quotidiens pendant le deuxième trimestre. Le revenu net total s'est établi à 79,9 millions de dollars, en baisse par rapport à 331,0 millions de dollars au deuxième trimestre 2023.
Sea meldete starke Ergebnisse für das zweite Quartal 2024, mit einem Gesamtumsatz nach GAAP, der im Jahresvergleich um 23% auf 3,8 Milliarden Dollar stieg. Zu den wichtigsten Punkten gehören:
- Die Bruttobestellungen im E-Commerce (Shopee) wuchsen im Jahresvergleich um 40,3% auf 2,5 Milliarden, während der GMV um 29,1% auf 23,3 Milliarden Dollar anstieg
- Die Buchungen im digitalen Entertainment (Garena) erhöhten sich um 21,1% im Jahresvergleich auf 536,8 Millionen Dollar
- Die Einnahmen der digitalen Finanzdienstleistungen stiegen um 21,4% im Jahresvergleich auf 519,3 Millionen Dollar.
Das Unternehmen erwartet, dass Shopee ab dem dritten Quartal 2024 ein positives EBITDA vorweisen kann und hat die Jahresprognose für das GMV-Wachstum auf circa 20% angehoben. Free Fire erreichte im zweiten Quartal über 100 Millionen täglich aktive Nutzer. Der Gesamtnettogewinn betrug 79,9 Millionen Dollar, ein Rückgang von 331,0 Millionen Dollar im zweiten Quartal 2023.
- Total GAAP revenue increased 23% year-on-year to $3.8 billion
- E-commerce gross orders grew 40.3% YoY to 2.5 billion
- Digital Entertainment bookings rose 21.1% YoY to $536.8 million
- Digital Financial Services revenue increased 21.4% YoY to $519.3 million
- Shopee expected to become adjusted EBITDA positive from Q3 2024
- Free Fire achieved over 100 million daily active users throughout Q2
- Raised full-year GMV growth guidance for Shopee to mid-20%
- Total net income decreased to $79.9 million from $331.0 million in Q2 2023
- E-commerce adjusted EBITDA turned negative to $(9.2) million from $150.3 million in Q2 2023
- Digital Entertainment GAAP revenue decreased to $435.6 million from $529.4 million in Q2 2023
Insights
Sea 's Q2 2024 results show mixed performance across its business segments. Total GAAP revenue increased by 23.0% YoY to
The e-commerce segment (Shopee) showed strong growth with GMV up
While top-line growth is impressive, the substantial increase in sales and marketing expenses (
Sea 's Q2 results reveal interesting market dynamics. The e-commerce segment's gross orders increased by
In Brazil, a key growth market, Shopee achieved positive contribution margin per order of
The digital entertainment segment's performance, particularly Free Fire's consistent daily active user base of over 100 million, showcases the game's enduring popularity. This 'evergreen' status could provide a stable revenue stream to support growth initiatives in other segments.
Sea 's strategic focus on AI is evident in their board changes. The appointment of Dr. Silvio Savarese, Salesforce's EVP and Chief Scientist leading AI Research, signals a potential shift towards integrating advanced AI capabilities across Sea's platforms. This could lead to enhanced personalization in e-commerce, improved game development and more sophisticated financial services algorithms.
The company's investment in research and development increased by
“I’m happy to report that it has been a solid quarter for us, with our strong momentum from Q1 continuing into Q2. All three of our businesses have shown both strong growth and higher profitability,” said Forrest Li, Sea’s Chairman and Chief Executive Officer.
On Shopee’s 2024 outlook, he said, “With the strong results delivered in the first half and our outlook for the rest of the year, we expect that Shopee will become adjusted EBITDA positive from the third quarter. We are also revising up our guidance for Shopee’s 2024 full year GMV growth to mid
On digital entertainment, Mr. Li said, “Garena delivered a strong quarter, with more than
Second Quarter 2024 Highlights
-
Group
-
Total GAAP revenue was
US , up$3.8 billion 23.0% year-on-year. -
Total gross profit was
US , up$1.6 billion 9.2% year-on-year. -
Total net income was
US , as compared to total net income of$79.9 million US for the second quarter of 2023.$331.0 million -
Total adjusted EBITDA1 was
US , as compared to$448.5 million US for the second quarter of 2023.$510.0 million -
As of June 30, 2024, cash, cash equivalents, short-term investments, and other treasury investments2 were
US , representing a net increase of$9.0 billion US from March 31, 2024.$364.7 million
-
Total GAAP revenue was
-
E-commerce
-
Gross orders totaled 2.5 billion for the quarter, increasing by
40.3% year-on-year. -
GMV was
US for the quarter, increasing by$23.3 billion 29.1% year-on-year. -
GAAP revenue was
US , up$2.8 billion 33.7% year-on-year. -
GAAP revenue included
US of GAAP marketplace revenue, which consists of core marketplace revenue and value-added services revenue and increased by$2.5 billion 32.7% year-on-year.-
Core marketplace revenue, mainly consisting of transaction-based fees and advertising revenues, was up
41.4% year-on-year toUS .$1.8 billion -
Value-added services revenue, mainly consisting of revenues related to logistics services, was up
15.5% year-on-year toUS .$722.3 million
-
Core marketplace revenue, mainly consisting of transaction-based fees and advertising revenues, was up
-
Adjusted EBITDA1 was
US , as compared to$(9.2) million US for the second quarter of 2023.$150.3 million -
Asia markets recorded adjusted EBITDA ofUS , as compared to$3.8 million US for the second quarter of 2023.$204.1 million -
Other markets recorded adjusted EBITDA of
US , as compared to$(13.0) million US for the second quarter of 2023.$(53.7) million -
In
Brazil , unit economics continued to improve, as we achieved positive contribution margin3 per order ofUS for the quarter, as compared to a loss of$0.09 US for the second quarter of 2023.$(0.24)
-
-
Gross orders totaled 2.5 billion for the quarter, increasing by
-
Digital Financial Services
-
GAAP revenue was
US , up$519.3 million 21.4% year-on-year. -
Adjusted EBITDA1 was
US , up$164.7 million 20.2% year-on-year. -
Digital financial services revenue and operating income are primarily attributed to the consumer and SME credit business. As of June 30, 2024, consumer and SME loans principal outstanding was
US , up$3.5 billion 39.5% year-on-year. This consists ofUS on-book and$2.9 billion US off-book loans principal outstanding4.$0.7 billion -
Non-performing loans past due by more than 90 days as a percentage of consumer and SME loans principal outstanding, which includes both on-book and off-book loans principal outstanding4, was
1.3% , a slight improvement quarter-on-quarter.
-
GAAP revenue was
-
Digital Entertainment
-
Bookings5 were
US , up$536.8 million 21.1% year-on-year. -
GAAP revenue was
US , as compared to$435.6 million US for the second quarter of 2023.$529.4 million -
Adjusted EBITDA1 was
US , up$302.8 million 26.5% year-on-year. -
Adjusted EBITDA represented
56.4% of bookings for the second quarter of 2024, as compared to54.0% for the second quarter of 2023. -
Quarterly active users were 648.0 million, up
19.0% year-on-year. -
Quarterly paying users were 52.5 million, up
21.7% year-on-year. Paying user ratio was8.1% , as compared to7.9% for the second quarter of 2023. -
Average bookings per user were
US , as compared to$0.83 US for the second quarter of 2023.$0.81
-
Bookings5 were
Changes in Board of Directors
With effect from August 12, 2024, Dr. Silvio Savarese and Ms. Jessica Tan have been elected to Sea’s board of directors as independent directors. Mr. Tony Hou, who is also serving as Sea’s Chief Financial Officer, has stepped down from the board at the same time, such that with effect of these changes, our seven-member board now comprises a majority of independent directors. Tony will continue to serve as Sea’s Chief Financial Officer.
Dr. Savarese currently serves as Executive Vice President and Chief Scientist of Salesforce Research where he leads the AI Research organization and shapes Salesforce’s scientific direction and long-term AI strategy. He has been in this position since April 2021. Dr. Savarese is also an adjunct professor of Computer Science at Stanford University.
Ms. Tan previously served as the Group co-CEO and Executive Director of Ping An Group. Ms. Tan is a member of the board of directors of Ping An Bank Co Ltd., listed on the Shenzhen Stock Exchange, and is on the boards of the Central Provident Fund Board, the National Healthcare Group, and the Agency Integrated Care, three non-profit organizations in
1 |
For a discussion of the use of non-GAAP financial measures, see “Non-GAAP Financial Measures”. |
|
2 |
Other treasury investments currently consist of group treasury related investments, such as available-for-sale sovereign bonds and corporate bonds, classified as part of long-term investments and securities purchased under agreements to resell relating to our banking operations. |
|
3 |
Contribution margin refers to adjusted EBITDA before allocation of HQ costs. |
|
4 |
Off-book loans principal outstanding mainly refers to channeling arrangements, which is lending by other financial institutions on our platform. |
|
5 |
GAAP revenue for the digital entertainment segment plus change in digital entertainment deferred revenue. This operating metric is used as an approximation of cash spent by our users in the applicable period that is attributable to our digital entertainment segment. |
Unaudited Summary of Financial Results |
|||||||||
(Amounts are expressed in thousands of US dollars “$” except for per share data) |
|||||||||
|
For the Three Months
|
|
|||||||
2023 |
|
2024 |
|||||||
|
$ |
$ |
YOY% |
||||||
Revenue |
|
|
|
||||||
Service revenue |
|
|
|
||||||
Digital Entertainment |
529,397 |
|
435,559 |
|
(17.7 |
%) |
|||
E-commerce and other services |
2,322,496 |
|
3,028,717 |
|
30.4 |
% |
|||
Sales of goods |
243,767 |
|
342,592 |
|
40.5 |
% |
|||
|
3,095,660 |
|
3,806,868 |
|
23.0 |
% |
|||
|
|
|
|
||||||
Cost of revenue |
|
|
|
||||||
Cost of service |
|
|
|
||||||
Digital Entertainment |
(160,669 |
) |
(139,501 |
) |
(13.2 |
%) |
|||
E-commerce and other services |
(1,263,522 |
) |
(1,764,815 |
) |
39.7 |
% |
|||
Cost of goods sold |
(220,591 |
) |
(317,735 |
) |
44.0 |
% |
|||
|
(1,644,782 |
) |
(2,222,051 |
) |
35.1 |
% |
|||
Gross profit |
1,450,878 |
|
1,584,817 |
|
9.2 |
% |
|||
Other operating income |
58,003 |
|
42,563 |
|
(26.6 |
%) |
|||
Sales and marketing expenses |
(493,601 |
) |
(774,768 |
) |
57.0 |
% |
|||
General and administrative expenses |
(295,169 |
) |
(303,838 |
) |
2.9 |
% |
|||
Provision for credit losses |
(153,001 |
) |
(167,415 |
) |
9.4 |
% |
|||
Research and development expenses |
(283,297 |
) |
(298,465 |
) |
5.4 |
% |
|||
Total operating expenses |
(1,167,065 |
) |
(1,501,923 |
) |
28.7 |
% |
|||
Operating income |
283,813 |
|
82,894 |
|
(70.8 |
%) |
|||
Non-operating income, net |
107,565 |
|
56,414 |
|
(47.6 |
%) |
|||
Income tax expense |
(62,212 |
) |
(60,612 |
) |
(2.6 |
%) |
|||
Share of results of equity investees |
1,817 |
|
1,215 |
|
(33.1 |
%) |
|||
Net income |
330,983 |
|
79,911 |
|
(75.9 |
%) |
|||
Earnings per share
|
|
|
|
||||||
Basic |
0.57 |
|
0.14 |
|
(75.4 |
%) |
|||
Diluted |
0.54 |
|
0.14 |
|
(74.1 |
%) |
|||
Change in deferred revenue of Digital Entertainment |
(86,254 |
) |
101,258 |
|
(217.4 |
%) |
|||
Adjusted EBITDA for Digital Entertainment (1) |
239,459 |
|
302,800 |
|
26.5 |
% |
|||
Adjusted EBITDA for E-commerce (1) |
150,339 |
|
(9,180 |
) |
(106.1 |
%) |
|||
Adjusted EBITDA for Digital Financial Services (1) |
136,961 |
|
164,678 |
|
20.2 |
% |
|||
Adjusted EBITDA for Other Services (1) |
(7,189 |
) |
(5,958 |
) |
(17.1 |
%) |
|||
Unallocated expenses (2) |
(9,549 |
) |
(3,867 |
) |
(59.5 |
%) |
|||
Total adjusted EBITDA (1) |
510,021 |
|
448,473 |
|
(12.1 |
%) |
(1) |
For a discussion of the use of non-GAAP financial measures, see “Non-GAAP Financial Measures”. |
|
(2) |
Unallocated expenses within total adjusted EBITDA are mainly related to general and corporate administrative costs such as professional fees and other miscellaneous items that are not allocated to segments. These expenses are excluded from segment results as they are not reviewed by the Chief Operating Decision Maker (“CODM”) as part of segment performance. |
Three Months Ended June 30, 2024 Compared to Three Months Ended June 30, 2023
Revenue
Our total GAAP revenue increased by
-
Digital Entertainment: GAAP revenue was
US in the second quarter of 2024 compared to$435.6 million US in the second quarter of 2023. Despite the increase in bookings during the second quarter of 2024, the decrease in GAAP revenue was primarily due to lower recognition of accumulated deferred revenue due to lower bookings in previous quarters.$529.4 million -
E-commerce and other services: GAAP revenue increased by
30.4% toUS in the second quarter of 2024 from$3.0 billion US in the second quarter of 2023, primarily driven by the GMV growth of our e-commerce business and the growth of our credit business.$2.3 billion -
Sales of goods: GAAP revenue increased by
40.5% toUS in the second quarter of 2024 from$342.6 million US in the second quarter of 2023.$243.8 million
Cost of Revenue
Our total cost of revenue was
-
Digital Entertainment: Cost of revenue decreased by
13.2% toUS in the second quarter of 2024 from$139.5 million US in the second quarter of 2023.$160.7 million -
E-commerce and other services: Cost of revenue for our e-commerce and other services segment combined was
US in the second quarter of 2024, as compared to$1.8 billion US in the second quarter of 2023, primarily driven by an increase in logistics costs as orders volume grew.$1.3 billion -
Cost of goods sold: Cost of goods sold increased by
44.0% toUS in the second quarter of 2024 from$317.7 million US in the second quarter of 2023.$220.6 million
Other Operating Income
Our other operating income was
Sales and Marketing Expenses
Our total sales and marketing expenses increased by
|
For the Three Months
|
|
|||||
|
2023 |
|
2024 |
YOY% |
|||
Sales and Marketing Expenses |
$ |
|
$ |
|
|||
E-commerce |
431,979 |
|
672,944 |
55.8 |
% |
||
Digital Financial Services |
19,207 |
|
54,950 |
186.1 |
% |
||
Digital Entertainment |
26,636 |
|
27,069 |
1.6 |
% |
General and Administrative Expenses
Our general and administrative expenses were
Provision for Credit Losses
Our provision for credit losses increased by
Research and Development Expenses
Our research and development expenses increased by
Non-operating Income or Losses, Net
Non-operating income or losses mainly consist of interest income, interest expense, investment gain (loss), foreign exchange gain (loss) and gain (loss) on debt extinguishment. We recorded a net non-operating income of
Income Tax Expense
We had a net income tax expense of
Net Income
As a result of the foregoing, we had net income of
Basic and Diluted Earnings Per Share Attributable to Sea Limited’s Ordinary Shareholders
Basic earnings per share attributable to Sea Limited’s ordinary shareholders was
Diluted earnings per share attributable to Sea Limited’s ordinary shareholders was
Webcast and Conference Call Information
The Company’s management will host a conference call today to review Sea’s business and financial performance.
Details of the conference call and webcast are as follows:
Date and time: |
7:30 AM 7:30 PM Singapore / Hong Kong Time on August 13, 2024 |
Webcast link: |
A replay of the conference call will be available at the Company’s investor relations website (www.sea.com/investor/home). An archived webcast will be available at the same link above.
About Sea Limited
Sea Limited (NYSE: SE) is a leading global consumer internet company founded in
Forward-Looking Statements
This announcement contains forward-looking statements. These statements are made under the “safe harbor” provisions of the
Non-GAAP Financial Measures
To supplement our consolidated financial statements, which are prepared and presented in accordance with
- “Adjusted EBITDA” for our digital entertainment segment represents operating income (loss) plus (a) depreciation and amortization expenses, and (b) the net effect of changes in deferred revenue and its related cost for our digital entertainment segment. We believe that the segment adjusted EBITDA helps to identify underlying trends in our operating results, enhancing their understanding of the past performance and future prospects.
- “Adjusted EBITDA” for our e-commerce segment, digital financial services segment and other services segment represents operating income (loss) plus depreciation and amortization expenses. We believe that the segment adjusted EBITDA helps to identify underlying trends in our operating results, enhancing their understanding of the past performance and future prospects.
- “Total adjusted EBITDA” represents the sum of adjusted EBITDA of all our segments combined, plus unallocated expenses. We believe that the total adjusted EBITDA helps to identify underlying trends in our operating results, enhancing their understanding of the past performance and future prospects.
These non-GAAP financial measures have limitations as analytical tools. None of the above financial measures should be considered in isolation or construed as an alternative to revenue, net loss/income, or any other measure of performance or as an indicator of our operating performance. These non-GAAP financial measures presented here may not be comparable to similarly titled measures presented by other companies. Other companies may calculate similarly titled measures differently, limiting their usefulness as comparative measures to Sea’s data. We compensate for these limitations by reconciling the non-GAAP financial measures to their nearest
The tables below present selected financial information of our reporting segments, the non-GAAP financial measures that are most directly comparable to GAAP financial measures, and the related reconciliations between the financial measures. Amounts are expressed in thousands of US dollars (“$”) except for number of shares & per share data.
|
For the Three Months ended June 30, 2024 |
||||||||||
|
E-
|
Digital
|
Digital
|
Other
|
Unallocated
|
Consolidated |
|||||
|
$ |
$ |
$ |
$ |
$ |
$ |
|||||
Operating (loss) income |
(84,762 |
) |
151,261 |
210,078 |
|
(9,003 |
) |
(184,680 |
) |
82,894 |
|
Net effect of changes in deferred
|
- |
|
- |
86,546 |
|
- |
|
- |
|
86,546 |
|
Depreciation and Amortization |
75,582 |
|
13,417 |
6,176 |
|
3,045 |
|
- |
|
98,220 |
|
Share-based compensation |
- |
|
- |
- |
|
- |
|
180,813 |
|
180,813 |
|
Adjusted EBITDA |
(9,180 |
) |
164,678 |
302,800 |
|
(5,958 |
) |
(3,867 |
) |
448,473 |
|
|
|||||||||||
|
For the Three Months ended June 30, 2023 |
||||||||||
|
E-
|
Digital
|
Digital
|
Other
|
Unallocated
|
Consolidated |
|||||
|
$ |
$ |
$ |
$ |
$ |
$ |
|||||
Operating income (loss) |
65,550 |
|
120,966 |
296,457 |
|
(10,034 |
) |
(189,126 |
) |
283,813 |
|
Net effect of changes in deferred
|
- |
|
- |
(65,360 |
) |
- |
|
- |
|
(65,360 |
) |
Depreciation and Amortization |
84,789 |
|
15,995 |
8,362 |
|
2,845 |
|
- |
|
111,991 |
|
Share-based compensation |
- |
|
- |
- |
|
- |
|
179,577 |
|
179,577 |
|
Adjusted EBITDA |
150,339 |
|
136,961 |
239,459 |
|
(7,189 |
) |
(9,549 |
) |
510,021 |
(1) |
A combination of multiple business activities that do not meet the quantitative thresholds to qualify as reportable segments are grouped together as “Other Services”. |
|
(2) |
Unallocated expenses are mainly related to share-based compensation and general and corporate administrative costs such as professional fees and other miscellaneous items that are not allocated to segments. These expenses are excluded from segment results as they are not reviewed by the CODM as part of segment performance. |
UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS |
||||||
Amounts expressed in thousands of US dollars (“$”) except for number of shares & per share data |
||||||
|
For the Six Months
|
|||||
|
2023 |
2024 |
||||
|
$ |
$ |
||||
Revenue |
|
|
||||
Service revenue |
|
|
||||
Digital Entertainment |
1,069,083 |
|
893,678 |
|
||
E-commerce and other services |
4,582,073 |
|
5,978,737 |
|
||
Sales of goods |
485,608 |
|
668,782 |
|
||
|
|
|
||||
|
|
|
||||
Total revenue |
6,136,764 |
|
7,541,197 |
|
||
|
|
|
||||
Cost of revenue |
|
|
||||
Cost of service |
|
|
||||
Digital Entertainment |
(334,035 |
) |
(295,478 |
) |
||
E-commerce and other services |
(2,504,850 |
) |
(3,479,869 |
) |
||
Cost of goods sold |
(430,311 |
) |
(627,283 |
) |
||
|
|
|
||||
|
|
|
||||
Total cost of revenue |
(3,269,196 |
) |
(4,402,630 |
) |
||
|
|
|
||||
|
|
|
||||
Gross profit |
2,867,568 |
|
3,138,567 |
|
||
|
|
|
||||
|
|
|
||||
Operating income (expenses) |
|
|
||||
Other operating income |
115,883 |
|
86,540 |
|
||
Sales and marketing expenses |
(893,744 |
) |
(1,544,403 |
) |
||
General and administrative expenses |
(628,546 |
) |
(594,692 |
) |
||
Provision for credit losses |
(330,440 |
) |
(329,182 |
) |
||
Research and development expenses |
(603,809 |
) |
(602,844 |
) |
||
Impairment of goodwill |
(117,875 |
) |
– |
|
||
|
|
|
||||
|
|
|
||||
Total operating expenses |
(2,458,531 |
) |
(2,984,581 |
) |
||
|
|
|
||||
|
|
|
||||
Operating income |
409,037 |
|
153,986 |
|
||
Interest income |
152,326 |
|
178,500 |
|
||
Interest expense |
(20,773 |
) |
(19,406 |
) |
||
Investment loss, net |
(28,815 |
) |
(125,352 |
) |
||
Net gain on debt extinguishment |
– |
|
32,009 |
|
||
Foreign exchange gain (loss) |
27,349 |
|
(26,878 |
) |
||
|
|
|
||||
Income before income tax and share of results of equity investees |
539,124 |
|
192,859 |
|
||
Income tax expense |
(124,110 |
) |
(139,372 |
) |
||
Share of results of equity investees |
3,261 |
|
3,424 |
|
||
|
|
|
||||
Net income |
418,275 |
|
56,911 |
|
||
|
|
|
||||
Net (income) loss attributable to non-controlling interests |
(8,595 |
) |
1,290 |
|
||
|
|
|
||||
Net income attributable to Sea Limited’s ordinary shareholders |
409,680 |
|
58,201 |
|
||
|
|
|
||||
Earnings per share: |
|
|
||||
Basic |
0.73 |
|
0.10 |
|
||
Diluted |
0.69 |
|
0.10 |
|
||
|
|
|
||||
Weighted average shares used in earnings per share computation: |
|
|
||||
Basic |
564,261,877 |
|
571,968,378 |
|
||
Diluted |
598,716,012 |
|
599,898,424 |
|
||
|
|
|
UNAUDITED INTERIM CONDENSED CONSOLIDATED BALANCE SHEETS |
||||
Amounts expressed in thousands of US dollars (“$”) |
||||
|
|
As of
|
As of
|
|
|
|
2023 |
2024 |
|
|
|
$ |
$ |
|
ASSETS |
|
|
|
|
Current assets |
|
|
|
|
Cash and cash equivalents |
|
2,811,056 |
2,646,488 |
|
Restricted cash |
|
1,410,365 |
1,401,038 |
|
Accounts receivable, net of allowance for credit losses of
|
|
262,716 |
249,543 |
|
Prepaid expenses and other assets |
|
1,861,842 |
1,823,988 |
|
Loans receivable, net of allowance for credit losses of
|
|
2,464,662 |
2,809,987 |
|
Inventories, net |
|
125,395 |
157,523 |
|
Short-term investments |
|
2,547,644 |
3,387,461 |
|
Amounts due from related parties |
|
290,254 |
404,711 |
|
Total current assets |
|
11,773,934 |
12,880,739 |
|
|
|
|
|
|
Non-current assets |
|
|
|
|
Property and equipment, net |
|
1,207,698 |
1,081,414 |
|
Operating lease right-of-use assets, net |
|
1,015,982 |
1,107,279 |
|
Intangible assets, net |
|
50,821 |
35,692 |
|
Long-term investments |
|
4,262,562 |
3,769,487 |
|
Prepaid expenses and other assets |
|
87,705 |
108,400 |
|
Loans receivable, net of allowance for credit losses of
|
|
20,551 |
51,129 |
|
Restricted cash |
|
22,236 |
27,587 |
|
Deferred tax assets |
|
328,961 |
401,922 |
|
Goodwill |
|
112,782 |
106,371 |
|
Total non-current assets |
|
7,109,298 |
6,689,281 |
|
Total assets |
|
18,883,232 |
19,570,020 |
|
UNAUDITED INTERIM CONDENSED CONSOLIDATED BALANCE SHEETS |
||||
Amounts expressed in thousands of US dollars (“$”) |
||||
|
|
As of
|
As of
|
|
|
|
2023 |
2024 |
|
|
|
$ |
$ |
|
LIABILITIES AND SHAREHOLDERS’ EQUITY |
|
|
|
|
Current liabilities |
|
|
|
|
Accounts payable |
|
342,547 |
293,688 |
|
Accrued expenses and other payables |
|
1,834,807 |
1,804,152 |
|
Deposits payable |
|
1,706,299 |
2,144,679 |
|
Escrow payables and advances from customers |
|
2,199,464 |
2,247,416 |
|
Amounts due to related parties |
|
64,081 |
227,575 |
|
Borrowings |
|
146,661 |
69,917 |
|
Operating lease liabilities |
|
290,788 |
296,572 |
|
Convertible notes |
|
151,764 |
151,919 |
|
Deferred revenue |
|
1,208,892 |
1,298,430 |
|
Income tax payable |
|
223,638 |
82,823 |
|
Total current liabilities |
|
8,168,941 |
8,617,171 |
|
|
|
|
|
|
Non-current liabilities |
|
|
|
|
Accrued expenses and other payables |
|
79,257 |
74,617 |
|
Borrowings |
|
119,323 |
117,348 |
|
Operating lease liabilities |
|
789,514 |
862,877 |
|
Deferred revenue |
|
72,587 |
118,229 |
|
Convertible notes |
|
2,949,785 |
2,743,936 |
|
Deferred tax liabilities |
|
133 |
358 |
|
Unrecognized tax benefits |
|
6,107 |
69,207 |
|
Total non-current liabilities |
|
4,016,706 |
3,986,572 |
|
Total liabilities |
|
12,185,647 |
12,603,743 |
|
UNAUDITED INTERIM CONDENSED CONSOLIDATED BALANCE SHEETS |
||||||
Amounts expressed in thousands of US dollars (“$”) |
||||||
|
|
As of
|
As of
|
|||
|
|
2023 |
2024 |
|||
|
|
$ |
$ |
|||
Shareholders’ equity
|
|
|
|
|||
Class A Ordinary shares |
|
262 |
|
264 |
|
|
Class B Ordinary shares |
|
23 |
|
23 |
|
|
Additional paid-in capital |
|
15,283,870 |
|
15,640,134 |
|
|
Accumulated other comprehensive loss |
|
(108,000 |
) |
(249,019 |
) |
|
Statutory reserves |
|
16,981 |
|
17,021 |
|
|
Accumulated deficit |
|
(8,599,306 |
) |
(8,541,145 |
) |
|
|
|
|
|
|||
Total Sea Limited shareholders’ equity |
|
6,593,830 |
|
6,867,278 |
|
|
Non-controlling interests |
|
103,755 |
|
98,999 |
|
|
Total shareholders’ equity |
|
6,697,585 |
|
6,966,277 |
|
|
Total liabilities and shareholders’ equity |
|
18,883,232 |
|
19,570,020 |
|
|
UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
||||||
Amounts expressed in thousands of US dollars (“$”) |
||||||
|
For the Six Months ended
|
|||||
|
2023 |
2024 |
||||
|
$ |
$ |
||||
Net cash generated from operating activities |
1,201,016 |
|
1,086,362 |
|
||
Net cash used in investing activities |
(3,867,640 |
) |
(1,563,708 |
) |
||
Net cash generated from financing activities |
58,143 |
|
426,438 |
|
||
Effect of foreign exchange rate changes on cash, cash
|
(22,114 |
) |
(117,636 |
) |
||
Net decrease in cash, cash equivalents and restricted cash |
(2,630,595 |
) |
(168,544 |
) |
||
Cash, cash equivalents and restricted cash at beginning of the
|
7,610,384 |
|
4,243,657 |
|
||
|
|
|
||||
Cash, cash equivalents and restricted cash at end of the period |
4,979,789 |
|
4,075,113 |
|
Net cash used in investing activities amounted to
UNAUDITED SEGMENT INFORMATION
The Company has three reportable segments, namely e-commerce, digital financial services and digital entertainment. The Chief Operating Decision Maker (“CODM”) reviews the performance of each segment based on revenue and certain key operating metrics of the operations and uses these results for the purposes of allocating resources to and evaluating the financial performance of each segment. Amounts are expressed in thousands of US dollars (“$”).
|
For the Three Months ended June 30, 2024 |
|||||||||||||||
|
E-
|
Digital
|
Digital
|
Other
|
Unallocated
|
Consolidated |
||||||||||
|
$ |
$ |
$ |
$ |
$ |
$ |
||||||||||
Revenue |
2,821,269 |
|
519,338 |
435,559 |
30,702 |
|
- |
|
3,806,868 |
|
||||||
Operating (loss) income |
(84,762 |
) |
151,261 |
210,078 |
(9,003 |
) |
(184,680 |
) |
82,894 |
|
||||||
Non-operating income, net |
|
|
|
|
|
56,414 |
|
|||||||||
Income tax expense |
|
|
|
|
|
(60,612 |
) |
|||||||||
Share of results of equity investees |
|
|
|
|
|
1,215 |
|
|||||||||
Net income |
|
|
|
|
|
79,911 |
|
|
For the Three Months ended June 30, 2023 |
||||||||||||||
|
E-
|
Digital
|
Digital
|
Other
|
Unallocated
|
Consolidated |
|||||||||
|
$ |
$ |
$ |
$ |
$ |
$ |
|||||||||
Revenue |
2,110,551 |
427,940 |
529,397 |
27,772 |
|
- |
|
3,095,660 |
|
||||||
Operating income (loss) |
65,550 |
120,966 |
296,457 |
(10,034 |
) |
(189,126 |
) |
283,813 |
|
||||||
Non-operating income, net |
|
|
|
|
|
107,565 |
|
||||||||
Income tax expense |
|
|
|
|
|
(62,212 |
) |
||||||||
Share of results of equity investees |
|
|
|
|
|
1,817 |
|
||||||||
Net income |
|
|
|
|
|
330,983 |
|
(1) |
A combination of multiple business activities that do not meet the quantitative thresholds to qualify as reportable segments are grouped together as “Other Services”. |
|
(2) |
Unallocated expenses are mainly related to share-based compensation and general and corporate administrative costs such as professional fees and other miscellaneous items that are not allocated to segments. These expenses are excluded from segment results as they are not reviewed by the CODM as part of segment performance. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20240812876742/en/
For enquiries:
Investors / analysts: ir@sea.com
Media: media@sea.com
Source: Sea Limited
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