Sea Limited Reports Strong Earnings with 40% Jump in Shopee Sales
Sea Limited (SE), the Singapore tech conglomerate that operates the popular online shopping website Shopee, experienced a surge in its stock price on Tuesday following the release of its second-quarter earnings report. The company reported double-digit revenue growth across all its business segments, with Shopee’s sales driving the majority of the increase.
Impressive Financial Results
Sea Limited posted adjusted earnings per share of $0.54 for the second quarter, surpassing expectations. The company’s revenue also saw a significant increase of 23.0% to $3.8 billion. The primary driver of this growth was the impressive performance of Shopee, which experienced a 40% surge in e-commerce sales, reaching $2.5 billion. Shopee’s strong presence in South Asia, Taiwan, and Latin America contributed to its remarkable performance.
CEO Forrest Li expressed his optimism about Shopee’s future, stating that the company expects adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) to be positive starting in the third quarter. Additionally, Sea Limited is raising its full-year outlook for gross merchandise value (GMV) to mid-20% growth.
Gaming and Financial Units Also Thrive
Aside from Shopee, Sea Limited owns Garena, a gaming business responsible for popular games like Free Fire, as well as other digital entertainment ventures such as publishing and e-sports. The company’s digital finance subsidiary, SeaMoney, offers mobile wallets and payment processing services in Southeast Asia and Brazil.
In the second quarter, digital financial revenue increased by 21.4% to $519.3 million, while digital entertainment revenue climbed by 21.1% to $536.8 million. Garena’s strong performance was highlighted by its more than 20% year-on-year growth in bookings, primarily driven by the success of Free Fire, which boasts over 100 million active players.
Market Response
Following the release of Sea Limited’s impressive earnings report, the company’s American Depositary Shares experienced a significant increase of 11.9%, closing Tuesday’s session at $74.85. This surge in stock price contributed to Sea Limited’s year-to-date gain of 85%, further solidifying its position as a strong performer in the market.
Sea Limited’s stock price has been on a steady rise throughout the year, with an 85% increase since the beginning of 2024. This positive market response reflects investors’ confidence in the company’s ability to deliver strong financial results and sustain its growth trajectory.
Conclusion
Sea Limited’s second-quarter earnings report showcased the company’s robust performance across its various business segments. The 40% jump in Shopee sales, along with the growth in its gaming and financial units, contributed to the company’s impressive revenue increase. CEO Forrest Li’s positive outlook for Shopee’s future and the raised full-year outlook for GMV further solidify Sea Limited’s position as a market leader.
Investors have responded favorably to Sea Limited’s strong earnings, with the company’s stock price experiencing a significant surge. As Sea Limited continues to expand its presence in the e-commerce, gaming, and digital finance sectors, it is well-positioned to maintain its upward trajectory and deliver continued success in the market.
Disclaimer: The information provided in this article is for informational purposes only and should not be considered as financial advice.
Read the original article on Investopedia.
