Sea Shares Gain Post Q1 Beat; Clocks 64.4% Revenue Growth Amid COVID Restrictions

Sea Limited SE reported first-quarter FY22 revenue growth of 64.4% year-on-year to $2.9 billion, beating the consensus of $2.8 billion.
Digital Entertainment revenue increased 45.3% Y/Y to $1.1 billion, and bookings were $0.8 billion versus $1.1 billion a year ago. The segment adjusted EBITDA was $431.4 million, compared to $717.3 million a year ago.
Quarterly active users were 615.9 million, compared to 648.8 million a year ago.
Average bookings per user were $1.3 versus $1.7 a year ago.
E-commerce revenue increased 64.4% Y/Y to $1.5 billion. Adjusted EBITDA loss for Shopee overall was $(742.8) million versus $(412.9) million a year back.
Marketplace revenue grew 75.3% Y/Y, and product revenue rose 26.8% Y/Y. Gross orders rose 71.3% Y/Y. Gross merchandise value increased 38.7% Y/Y.
Digital Financial Services revenue grew 359.9% Y/Y to $236 million.
The mobile wallet total payment volume rose 48.5% Y/Y to $5.1 billion.
Adjusted EPS loss of $(0.80) beat the consensus loss of $(1.17). Sea Ltd held $9.1 billion in cash and equivalents.
Outlook: Sea revised FY22 e-commerce revenue guidance from $8.9 billion - $9.1 billion to $8.5 billion - $9.1 billion.
Price Action: SE shares traded higher by 13% at $79.50 in the premarket session on the last check Tuesday.

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