Sea Limited Reports First-Quarter 2025 Results with $0.65 Adj. EPS

Sea Limited (NYSE: SE) has released its financial results for the first quarter of 2025, showcasing significant growth across its key business segments. This article delves into the company’s performance against market expectations and its future guidance.

Sea Limited Falls Short of Market Expectations Despite Turnaround Quarter

Sea Limited reported a robust start to 2025, with total GAAP revenue reaching $4.8 billion, marking a 29.6% increase year-on-year. This performance, however, fell slightly short of the market’s revenue expectation of $4.91 billion. The company’s net income for the quarter stood at $410.8 million, a significant turnaround from the net loss of $23.0 million in the same period last year. Earnings per share (EPS) came in at $0.68 (Adj. $0.65), which was below the expected EPS of $0.93.

In the e-commerce segment, Shopee achieved a record-high gross merchandise volume (GMV) of $28.6 billion, up 21.5% year-on-year. The segment’s revenue grew by 28.3% to $3.5 billion, driven by a 39.2% increase in core marketplace revenue. The e-commerce segment also reported an adjusted EBITDA of $264.4 million, a significant improvement from a loss of $21.7 million in the previous year.

Sea’s digital financial services, rebranded as Monee, delivered a strong performance with revenue rising by 57.6% to $787.1 million. The adjusted EBITDA for this segment increased by 62.4% to $241.4 million. This growth was primarily attributed to the expansion of its credit business, with consumer and SME loans outstanding reaching $5.8 billion, a 76.5% increase year-on-year. The digital entertainment segment also showed impressive growth, with bookings up 51.4% to $775.4 million, and adjusted EBITDA rising by 56.8% to $458.2 million.

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Sea Limited Remains Confident in Full-Year Guidance

Looking ahead, Sea Limited remains confident in its ability to achieve its full-year guidance, underpinned by the strong performance in the first quarter. The company plans to continue enhancing the competitiveness and differentiation of its e-commerce platform, Shopee, by focusing on price competitiveness, service quality, and content ecosystem enhancement. Shopee’s continued market leadership in Asia and Brazil is expected to drive further growth.

In the digital financial services sector, the rebranding of SeaMoney to Monee is part of the company’s strategy to strengthen its brand identity and synergy with Shopee. Sea Limited is committed to maintaining stable asset quality while scaling its credit business, ensuring long-term profitability and growth. The company is focused on risk management to mitigate potential impacts from credit cycles.

The digital entertainment segment, led by Garena, plans to capitalize on the popularity of Free Fire, bolstered by its collaboration with NARUTO. Sea Limited aims to sustain the game’s popularity and expand its game portfolio to drive continued growth. The company is also focused on improving localized content to enhance user engagement and retention.

Disclaimer: The author does not hold or have a position in any securities discussed in the article. All stock prices were quoted at the time of writing.