Table of Contents
a. Demand
Sea Limited beat revenue estimate by 9.8%. Shopee beat e-commerce gross merchandise value (GMV) estimate by 4.9%.
b. Profits
Beat 45.4% GPM estimate by 20 basis points (bps; 1 basis point = 0.01%).
Beat EBITDA estimate by 5%.
EBITDA rose by 11% Y/Y compared to 48% revenue growth.
Shopee EBITDA margin was 4.6% vs. 6.9% Y/Y as it focuses on scaling in Brazil and its Asian markets. Monee EBITDA margin was 20.5% vs. 28.9% Y/Y for similar reasons.
Garena EBITDA margin was 57.5% vs. 65.8% Y/Y.
Missed $0.76 EPS estimate by $0.06.
Net income rose by 11% Y/Y. This metric was pressured by its tax bill more than tripling from $144M to $451M Y/Y. If its tax bill rose in line with operating income growth, net income would have grown by 25% Y/Y. Still, EBITDA again only rose by 11% Y/Y, so there are current margin pressures that are stemming from the fulfillment and financial services investment cycle this company is in.
c. Balance Sheet
$3.5B cash & equivalents.
$2.4B restricted cash.
$2.7B long-term investments.
d. Guidance & Valuation
Subscribe to our premium content to read the rest.
Become a paying subscriber to get access to this post and a boatload of other subscriber-only content. Read the stock market newsletter read by Fortune 500 CEOs.
Upgrade