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Sea Limited (SE) Q2 Earnings Miss Estimates, Revenues Up Y/Y
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Sea Limited (SE - Free Report) reported earnings of 46 cents per share in second-quarter 2024, missing the Zacks Consensus Estimate of 22.03%. The company posted earnings of 83 cents in the year-ago quarter.
Revenues of $3.91 billion increased 29.9% on a year-over-year basis, beating the Zacks Consensus Estimate by 4.73%. The uptick was primarily driven by growth in Gross Merchandise Value (GMV) for e-commerce and the credit business.
Top-Line Details
Digital entertainment revenues totaled $435.6 million, down 17.7% year over year.
In the second quarter, Garena registered a 20% year-over-year increase in bookings. Free Fire, one of its flagship games, remained one of the largest mobile games globally, with more than 100 million Daily Active Users (DAU). The game continued to engage players with regular content updates, new features and in-game events.
Sea Limited Sponsored ADR Price, Consensus and EPS Surprise
Quarterly active users (QAUs) reached 648 million, up 19% year over year.
Quarterly paying users of 52.5 million increased 21.7% year over year. Paying user ratio was 8.1% in the second quarter compared with 7.9% in the year-ago quarter.
Average bookings per user in the reported quarter were 83 cents compared with 81 cents in the year-ago quarter.
Bookings were $536.8 million in second-quarter 2024, up 21.1% year over year.
E-commerce and other services revenues totaled $3 billion, up 30.4% year over year.
The uptick was driven by robust performance in Shopee, with gross orders rising by 40% and GMV growing by 29%.
Additionally, Shopee’s ad take rate improved, with a 20% year-on-year increase in the number of sellers paying for ads. New features like Live Ads boosted ad revenues and overall content ecosystem.
Sales of goods increased 40.5% year over year to $342.5 million in second-quarter 2024.
Digital financial services revenues increased 21.4% year over year to $519.3 million.
The uptick was driven by strong growth in its loan book, which reached $3.5 billion, up nearly 40% year-on-year. The number of active users for consumer and SME loans grew by almost 60% year-on-year.
Operating Details
Gross profit increased 9.2% year over year to $1.58 billion in second-quarter 2024.
Adjusted EBITDA was $448.5 million compared with an EBITDA of $510 million in the year-ago quarter.
Digital Entertainment's adjusted EBITDA was $ 302.8 million compared with $239.4 million reported in the year-ago quarter, up by 26.5% year over year.
E-commerce adjusted EBITDA declined $9.2 million compared with a profit of $150.3 million reported in the year-ago quarter.
Digital Financial Services adjusted EBITDA was $165 million and increased 20.2% year over year.
Balance Sheet
As of Jun 30, 2024, SE had cash and cash equivalents of $2.64 billion compared with $2.46 billion as of Mar 31, 2024.
Zacks Rank & Other Stocks to Consider
Currently, Sea Limited has a Zacks Rank #5 (Strong Sell).
The company’s shares have surged 83.8% year to date compared with the Zacks Computer & Technology sector’s rise of 15.2%.
Here are some top-ranked stocks worth considering in the broader sector.
Applied Materials (AMAT - Free Report) , NetApp (NTAP - Free Report) and Bilibili (BILI - Free Report) are some other top-ranked stocks that investors can consider in the broader sector.
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Sea Limited (SE) Q2 Earnings Miss Estimates, Revenues Up Y/Y
Sea Limited (SE - Free Report) reported earnings of 46 cents per share in second-quarter 2024, missing the Zacks Consensus Estimate of 22.03%. The company posted earnings of 83 cents in the year-ago quarter.
Revenues of $3.91 billion increased 29.9% on a year-over-year basis, beating the Zacks Consensus Estimate by 4.73%. The uptick was primarily driven by growth in Gross Merchandise Value (GMV) for e-commerce and the credit business.
Top-Line Details
Digital entertainment revenues totaled $435.6 million, down 17.7% year over year.
In the second quarter, Garena registered a 20% year-over-year increase in bookings. Free Fire, one of its flagship games, remained one of the largest mobile games globally, with more than 100 million Daily Active Users (DAU). The game continued to engage players with regular content updates, new features and in-game events.
Sea Limited Sponsored ADR Price, Consensus and EPS Surprise
Sea Limited Sponsored ADR price-consensus-eps-surprise-chart | Sea Limited Sponsored ADR Quote
Quarterly active users (QAUs) reached 648 million, up 19% year over year.
Quarterly paying users of 52.5 million increased 21.7% year over year. Paying user ratio was 8.1% in the second quarter compared with 7.9% in the year-ago quarter.
Average bookings per user in the reported quarter were 83 cents compared with 81 cents in the year-ago quarter.
Bookings were $536.8 million in second-quarter 2024, up 21.1% year over year.
E-commerce and other services revenues totaled $3 billion, up 30.4% year over year.
The uptick was driven by robust performance in Shopee, with gross orders rising by 40% and GMV growing by 29%.
Additionally, Shopee’s ad take rate improved, with a 20% year-on-year increase in the number of sellers paying for ads. New features like Live Ads boosted ad revenues and overall content ecosystem.
Sales of goods increased 40.5% year over year to $342.5 million in second-quarter 2024.
Digital financial services revenues increased 21.4% year over year to $519.3 million.
The uptick was driven by strong growth in its loan book, which reached $3.5 billion, up nearly 40% year-on-year. The number of active users for consumer and SME loans grew by almost 60% year-on-year.
Operating Details
Gross profit increased 9.2% year over year to $1.58 billion in second-quarter 2024.
Adjusted EBITDA was $448.5 million compared with an EBITDA of $510 million in the year-ago quarter.
Digital Entertainment's adjusted EBITDA was $ 302.8 million compared with $239.4 million reported in the year-ago quarter, up by 26.5% year over year.
E-commerce adjusted EBITDA declined $9.2 million compared with a profit of $150.3 million reported in the year-ago quarter.
Digital Financial Services adjusted EBITDA was $165 million and increased 20.2% year over year.
Balance Sheet
As of Jun 30, 2024, SE had cash and cash equivalents of $2.64 billion compared with $2.46 billion as of Mar 31, 2024.
Zacks Rank & Other Stocks to Consider
Currently, Sea Limited has a Zacks Rank #5 (Strong Sell).
The company’s shares have surged 83.8% year to date compared with the Zacks Computer & Technology sector’s rise of 15.2%.
Here are some top-ranked stocks worth considering in the broader sector.
Applied Materials (AMAT - Free Report) , NetApp (NTAP - Free Report) and Bilibili (BILI - Free Report) are some other top-ranked stocks that investors can consider in the broader sector.
All three stocks carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Applied Materials’ shares have surged 24.2% year to date. AMAT is scheduled to release third-quarter fiscal 2024 results on Aug 15.
NetApp’s shares have rallied 42.8% year to date. NTAP is scheduled to release first-quarter fiscal 2025 results on Aug 28.
Bilibili’s shares have increased by 14.9% year to date. BILI is set to report second-quarter 2024 results on Aug 22.