Sea Q4 Earnings: E-Commerce And Digital Finance Drive Double-Digit Growth, Projects Expansion In 2025

Zinger Key Points

Sea Limited reports 36.9% revenue growth to $4.95B in Q4, beating estimates but missing EPS consensus at $0.39.
E-commerce revenue surges 41.3% Y/Y to $3.7B, with core marketplace growing 49.8% as Shopee gains profitability in Asia and Brazil.
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Sea Limited SE reported fiscal fourth-quarter revenue growth of 36.9% year-on-year to $4.95 billion, beating the analyst consensus estimate of $4.62 billion.

EPS of $0.39, up from a loss of $0.19 Y/Y, missed the analyst consensus estimate of $0.40. The stock price gained after the print.

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Digital Entertainment revenue increased 1.6% year over year to $519.06 million. Bookings improved to $543.2 million, up 19.0% Y/Y.

The segment’s adjusted EBITDA was $289.7 million, up 33.3% Y/Y. Quarterly active users were 618.0 million, up 16.9% Y/Y. Average bookings per user were $0.88 versus $0.86 Y/Y.

E-commerce and other services revenue increased 41.3% Y/Y to $3.7 billion. Adjusted EBITDA for the segment overall was $152.2 million versus a $225.3 million loss a year back.

Core marketplace revenue grew 49.8% Y/Y to $2.4 billion. Gross orders rose 20.1% Y/Y. GMV was $28.6 billion, increasing by 23.5% Y/Y.

Digital Financial Services revenue grew 55.2% Y/Y to $733.3 million. Adjusted EBITDA was $211.0 million, up 42.1% Y/Y.

Sea Ltd held $10.4 billion in cash and equivalents as of December 31, 2024.

Chair and CEO Forrest Li highlighted that all three businesses went back to strong, double-digit growth, exceeding its original guidance. It was the company’s second consecutive year of annual positive profit, with all three of our businesses recording positive adjusted EBITDA, he noted.

E-commerce achieved adjusted EBITDA profitability in both Asia and Brazil. Sea remains confident about delivering profitable growth in 2025 and expects Shopee’s full-year 2025 GMV growth to be around 20%, with improving profitability.

He noted that the company delivered loan book growth of over 60% in the fourth quarter, surpassing $5 billion as of the end of 2024, making it a leading consumer lending business in Southeast Asia. In 2025, it expects loan book size to grow meaningfully faster than Shopee’s GMV annual growth rate.

Li expects Garena to grow double-digit for both user base and bookings in 2025.

Sea stock surged over 129% in the last 12 months. It has topped revenue estimates for the last six preceding quarters out of a total of eight quarters, prompting a Wall Street analyst price target boost.

Price Action: SE stock is up 6.49% at $131.50 premarket at the last check on Tuesday.

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