Sea Q3 Earnings: E-Commerce Leads Growth, Shopee On Track To Hit GMV Guidance, Stock Soars

Sea Limited SE reported fiscal third-quarter 2024 revenue growth of 30.8% year-on-year to $4.33 billion, beating the analyst consensus estimate of $4.08 billion. 

EPS of $0.24, up from $(0.26) Y/Y, missed the analyst consensus estimate of $0.26. The stock price gained after the print.

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Digital Entertainment revenue decreased 15.9% year over year to $497.85 million. Bookings improved to $556.5 million, up 24.3% Y/Y. 

The segment’s adjusted EBITDA was $314.4 million, up 34.4% Y/Y. Quarterly active users were 628.5 million, up 15.5% Y/Y. Average bookings per user were $0.89 versus $0.82 Y/Y.

E-commerce and other services revenue increased 42.6% Y/Y to $3.2 billion. Adjusted EBITDA for the segment overall was $34.4 million versus $(346.5) million a year back.

Core marketplace revenue grew 49.3% year over year to $2.0 billion. Gross orders rose 24.2% year over year. GMV was $25.1 billion, increasing by 25.2% year over year.

Digital Financial Services revenue grew 38.0% Y/Y to $615.7 million.

Sea Ltd held $9.9 billion in cash and equivalents as of September 30, 2024.

Forrest Li, Chairman and CEO noted Shopee is on track to meet its annual guidance, projecting mid-twenties year-on-year GMV growth. SeaMoney expanded its loan book by over 70% year-over-year, maintaining a stable non-performing loan ratio. Li also highlighted Garena’s success, expecting Free Fire’s bookings to increase by more than 30% this year.

Li emphasized improved profitability alongside robust growth, pointing out that Shopee achieved positive adjusted EBITDA in Asia and Brazil. He anticipates Shopee will continue delivering profits while sustaining growth momentum.

Sea Ltd stock surged over 153% year-to-date.

Price Action: SE stock is up 14.30% at $111.45 at the last check on Tuesday.

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