Sea Stock Plunges After Q2 Performance - What's Driving The Action?

Sea Limited SE reported second-quarter FY23 revenue growth of 5.2% year-on-year to $3.096 billion, missing the consensus of $3.420 billion. Adjusted EPS of $0.54 missed the consensus of $0.69. 

Digital Entertainment revenue decreased 41.2% Y/Y to $529.4 million, and bookings fell to $443.1 million versus $462.3 million a year ago. The segment's adjusted EBITDA was $239.5 million, compared to $333.6 million a year ago.

Quarterly active users were 544.5 million, compared to 491.6 million in the prior quarter.

Average bookings per user fell to $0.80 versus $0.90 in the prior quarter.

E-commerce and other services revenue increased 20.6% Y/Y to $2.1 billion. Adjusted EBITDA for Shopee overall was $150.3 million versus $(648.1) million a year back.

Core marketplace revenue grew 37.6% Y/Y. Gross orders rose over 10% Q/Q. 

Digital Financial Services revenue grew 53.4% Y/Y to $427.9 million.

Sea Ltd held $7.7 billion in cash and equivalents.

Price Action: SE shares traded lower by 16.20% at $47.69 in the premarket session on the last check Tuesday.