These Analysts Boost Their Forecasts On Sea After Q4 Results

Sea Limited SE reported better-than-expected sales results for its fourth quarter on Monday.

Sea posted a quarterly loss of 19 cents per share, versus a year-ago profit of 72 cents per share. The company’s quarterly sales came in at $3.62 billion, topping market estimates of $3.53 billion, according to data from Benzinga Pro.

Quarterly active users were 528.7 million, compared to 544.1 million in the prior quarter. Average bookings per user were $0.86, which increased 4.8% quarter-on-quarter. Core marketplace revenue grew 40.6% Y/Y. Gross orders rose 46.0% Y/Y and 13.4% quarter-on-quarter.

"I am happy to share that we have achieved our first full year of annual profit since our IPO," said Forrest Li, Sea’s Chairman and Chief Executive Officer. "In 2023, we achieved profitability, strengthened our market leadership for our e-commerce business, grew our digital financial services business, and stabilized the performance of our digital entertainment business. We have emerged with a much stronger balance sheet with our cash position increasing to 8.5 billion dollars as of the end of 2023, demonstrating the discipline and prudence we have applied in our investments over the past year. Looking ahead, we expect 2024 to be another profitable year."

Sea expects Shopee’s full-year GMV growth to be in the high teens range and its adjusted EBITDA to turn positive in the second half of this year.

Sea shares gained 5.6% to close at $53.90 on Monday.

These analysts made changes to their price targets on Sea after the company reported quarterly results.

• Bernstein raised the price target on Sea from $50 to $60. Bernstein analyst Venugopal Garre maintained an Outperform rating.
• JP Morgan boosted the price target on Sea from $43 to $70. JP Morgan analyst Ranjan Sharma upgraded the stock from Neutral to Overweight.

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