Sea Limited

Are services from this company becoming more top-of-mind in its core markets?

However, I was wrong: Sea primarily achieved profitability thanks to one big decision, and it bodes well for the company's future. And that's why Sea stock was up today. In the fourth quarter of 2022, Sea generated revenue of almost $3.5 billion, which was up 7% year over year and far exceeded Wall Street's expectations.

Tech giant Sea posted a quarterly profit for the first time as the company pledged to move towards profitability last quarter.

"In our Asia markets, we will work to further strengthen our leading position and profitability. "As a result, we began to see meaningful improvements in the bottom line." Positive EBITDA, or earnings before interest, taxes, depreciation and amortization, refers to the company operating at a profitable level. Most recently, it announced that it will be expanding its presence in Malaysia, according to We exited or downsized operations in non-core markets, streamlined our game pipeline with divestments and project closures, and deprioritized non-core initiatives," the CEO said. "However, there are still some macro headwinds and declining gross merchandize value (GMV) trends that could further delay its path to profitability," said Woo. "Given the macro uncertainty and our recent strong pivot, we are closely monitoring the market environment and we will continue to adjust our pace and fine-tune our operations accordingly," said Li. SeaMoney's adjusted EBITDA also turned positive for the first time to $75.6 million for the fourth quarter, driven by improvements in revenue and sales and marketing expenses. "Recent cost-cutting measures like freezing salaries and employee headcount [have] given Sea's stock some much needed reprieve. "We do expect Garena's growth to continue declining moving forward, given the lack of a strong games pipeline, and the continued download ban on Free Fire in India," said Phillip Securities' Woo, adding that quarterly active users and paying users have been dropping in the last five quarters. Given the macro uncertainty and our recent strong pivot, we are closely monitoring the market environment and we will continue to adjust our pace and fine-tune our operations accordinglyForrest Lichairman and group CEO, Sea Limited - "The positive surprise in fourth-quarter 2022 earnings should provide continued upward momentum for Sea – especially with the path to profitability slightly clearer," said Jonathan Woo, senior research analyst at Phillip Securities.

Sea Limited (NYSE:SE) Q4 2022 Earnings Call Transcript March 7, 2023 Operator: Good morning and good evening. Welcome to the Sea Limited Fourth Quarter and ...

Sea Limited posted a surprise net profit in the fourth quarter, a shocking turnaround from a year ago.

That high revenue growth came even while gross merchandise volume (GMV) actually declined 1%, although GMV rose 7.7% in constant currency. Finally, management also pointed to meaningful logistics cost savings, without going into too much detail. So, the fact that Shopee could still grow GMV on a constant currency basis while cutting marketing expenses by more than half says something about its brand presence across its core markets. Sea seems to fit that description. When asked about the remarkable turn to profitability on the earnings call, CEO Forrest Li said: "There's a lot of hard work, and we make sacrifices. In the fourth quarter, Sea bought some of the bonds back at the bottom -- a near-perfect bit of selling high and buying low. Not only did operating profits flip to positive territory across each of Sea's main segments, but the company also appears to have been free-cash-flow-positive. That's why the stock surged more than 20% on Tuesday, defying the overall market's 1.5% drop that day. And the profit gains are even more shocking when one considers operating profit from the digital entertainment segment dropped by $458 million in that time. Both of those businesses took lots of capital to build, and each of those segments regularly inked eye-popping losses in the hundreds of millions of dollars per quarter. On the company's recent fourth-quarter release, that change of strategy yielded remarkable results -- a highly encouraging development for shareholders. With the underpenetration of e-commerce and digitization in the region heading into the pandemic, Sea's growth absolutely exploded in 2020 and 2021, sending shares as high as $372 in late 2021.

UOB Kay Hian and Citi have lifted their target prices to US$94.34 and US$110 respectively.

Connection is secure Checking if the site connection is secure Occasionally, you may see this page while the site ensures that the connection is secure.

Sea Limited stock has popped over 20% following Q4 earnings. SE has been surprised by delivering strong profitability in its commerce segment.

This valuation seems more than possible, and I wouldn't be surprised to see SE trade much higher in the next few years. Learn the ins and outs of innovative technology and how you can profit from them. But also, more importantly, the key focus in the near term still on the core games and, in particular, Free Fire that we want to turn into a strong evergreen franchise. Last time this year, the company reported a loss of $616.3 million for the quarter. In the last quarter, EBITDA margin was close to 14%, with revenues growing 25% for the whole year. Sea Limited managed to bring in $196 million in adjusted EBITDA in Q4, and the segment has grown 44% YoY. All in all, SE has managed to turn things around in commerce just in time, because, at least compared with previous performance, its other two sectors are floundering. For a long time, there was a concern that Shoppe, the company's e-commerce brand, would fail to turn a profit. The outlook for the DE sector was also not that great. The company has shown great growth and profitability in its e-commerce segment, but the same can't be said of its two other segments. DE has, for some time, been the company's cash cow, thanks to the success of its Free Fire game. Let's have a look at the financials below: