Sea Limited (SE) Reports 30.8% y/y Revenue Growth for Third Quarter 2024
Sea Limited (NYSE: SE) has announced its financial results for the third quarter of 2024, showcasing strong growth across its diversified business segments. Total GAAP revenue for the quarter was reported at $4.3 billion, marking a 30.8% increase year-on-year. This growth was driven by significant contributions from its core businesses: e-commerce, digital financial services, and digital entertainment.
The e-commerce segment, represented by Shopee, saw its GAAP revenue rise by 42.6% to $3.2 billion, fueled by a 25.2% increase in gross merchandise volume (GMV) to $25.1 billion. Shopee achieved positive adjusted EBITDA in both Asia and Brazil, a notable turnaround from a loss of $346.5 million in the same quarter last year. This achievement underscores the platform’s operational efficiency and market penetration.
SeaMoney, the digital financial services arm, reported a 38% increase in GAAP revenue to $615.7 million. The segment’s loan book expanded by over 70% year-on-year, maintaining a stable non-performing loan ratio of 1.2%. Meanwhile, Garena, the digital entertainment division, recorded bookings of $556.5 million, up 24.3% year-on-year, despite a decline in GAAP revenue due to deferred revenue recognition.
E-Commerce Segment a Key Driver in Sea Limited’s Revenue y/y Revenue Growth
The company reported earnings per share (EPS) of $0.26, below the expected $0.42. Revenue expectations were set at $4.08 billion, yet Sea Limited delivered $4.3 billion, a testament to its strong operational execution and strategic initiatives.
The e-commerce segment was a key driver, with a 41.2% increase in revenue from e-commerce and other services, surpassing market projections. This performance was bolstered by strong consumer engagement and expansion in emerging markets.
The digital financial services segment also outperformed, with revenue growth driven by the expansion of consumer and SME credit offerings. The company’s strategic focus on enhancing its digital financial infrastructure and product offerings has paid off, contributing to the overall financial outperformance. The digital entertainment segment, while experiencing a decline in GAAP revenue, managed to increase its adjusted EBITDA by 34.4%, reflecting effective cost management and user engagement strategies.
Sea Limited Reiterates Full Year Guidance
Sea Limited remains optimistic about its growth trajectory. The company has reiterated its full-year guidance for Shopee, projecting mid-twenties year-on-year GMV growth. This outlook is supported by continued market expansion and product innovation, particularly in key regions such as Southeast Asia and Latin America.
For SeaMoney, the company expects sustained growth in its loan book, underpinned by strategic partnerships and product diversification. The focus will remain on maintaining a stable non-performing loan ratio while expanding its credit offerings across new markets. Sea’s commitment to digital financial inclusion positions it well to capture emerging opportunities in the fintech sector.
Garena’s Free Fire is anticipated to achieve over 30% year-on-year growth in bookings for the full year. This forecast is driven by ongoing investments in game development and user engagement initiatives. Sea Limited’s strategic focus on enhancing its digital entertainment portfolio is expected to drive long-term growth and user retention.
Disclaimer: The author does not hold or have a position in any securities discussed in the article.
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